The IRS Offer in Compromise program lets qualifying taxpayers settle tax debt for a fraction of what they owe. Our ex-IRS specialists and tax attorneys in Albuquerque know the exact formula the IRS uses to evaluate every OIC, and we build cases that stand up to scrutiny.
An Offer in Compromise (OIC) is a formal agreement between a taxpayer and the IRS that settles the full tax liability for less than the total amount owed. Congress created the program so the IRS could recover something from taxpayers who genuinely cannot pay the full balance. The IRS evaluates every OIC using a formula called Reasonable Collection Potential (RCP), which accounts for your income, allowable expenses, and asset equity.
The IRS OIC program is a statutory option that the IRS is required to consider. Approval rates have improved since the IRS Fresh Start initiative, but the application process is demanding and poorly prepared submissions are rejected at high rates. That is where our team of ex-IRS employees and enrolled agents makes the difference.
Qualification depends on three grounds: doubt as to collectibility (you cannot pay the full amount), doubt as to liability (the tax was wrongly assessed), or effective tax administration (paying would create economic hardship). The vast majority of accepted offers are filed on the collectibility ground. Our specialists calculate your Reasonable Collection Potential during the free call at no cost.
The IRS charges a $205 application fee and requires a down payment with the application. Low-income taxpayers may be exempt. We charge a flat fee for OIC preparation and negotiation disclosed in writing before you commit to anything.
Current IRS processing times run 12 to 18 months. Collection activity is typically paused while the application is pending, which provides meaningful relief during the process. If the offer is rejected, we have appeal rights through IRS Appeals and ultimately through U.S. Tax Court. If an OIC is not the right path, we will tell you that upfront and explore installment agreements, CNC status, or penalty abatement instead.
National TV-advertised firms typically charge $4,000 to $8,000 up front and assign your case to a junior contractor. Our network of ex-IRS staff works your case directly from consultation through resolution. See the Better Business Bureau for guidance on evaluating tax relief firms.
Ready to resolve this? As the tax attorney team Albuquerque and New Mexico trust, we offer a free consultation with a resolution specialist — available by phone Monday through Friday. Request a callback or call (505) 420-3320.
Our team resolves the full range of IRS enforcement actions: from wage garnishments and bank levies to federal tax liens, Offers in Compromise, and audit representation. Business owners dealing with payroll tax issues or a Trust Fund Recovery Penalty notice will find dedicated support as well.
We serve all communities in the greater metro: Rio Rancho, Santa Fe, Los Lunas, Bernalillo, Corrales, Belen, Edgewood, and Española, in addition to clients statewide for federal matters.
15 minutes with our resolution team. A concrete plan, yours to keep. No obligation, no pressure.
