Offers in Compromise
A Reality Check for Taxpayers
An Offer in Compromise (OIC)
is one possible tool for resolving tax debt
but it is not automatic, not common, and not determined upfront.
Many taxpayers are told they “qualify” before anyone has reviewed:
- Compliance status
- Procedural standing
- Financial documentation
- Audit or enforcement posture
At TREA, we evaluate OIC feasibility only as part of a structured review, not through assumptions or self-service tools.
What an Offer in Compromise Is
An Offer in Compromise allows a taxpayer to settle a tax liability for less than the full amount owed only when strict criteria are met and supported by documentation.
Eligibility depends on:
- Ability to pay
- Income and asset structure
- Compliance history
- Procedural posture with the taxing authority
Each case is fact-specific.
What an Offer in Compromise Is Not
An Offer in Compromise allows a taxpayer to settle a tax liability for less than the full amount owed only when strict criteria are met and supported by documentation.
To set realistic expectations:
- An OIC is not available to everyone
- It is not determined by an online calculator
- It is not the first step in resolving a tax problem
- It does not eliminate the need for compliance
Most cases require review, stabilization, and positioning before OIC feasibility can even be evaluated.
How OIC Fits Into Our Process
At TREA, OIC feasibility is screened during Phase 1 – Study, after we review:
Notices and transcripts
Enforcement status
Filing history
Preliminary financial posture
Only after the case is properly positioned do we determine whether pursuing an Offer in Compromise makes sense—or whether another resolution path is more appropriate.
How to Start
The first step is not an OIC application.
The first step is determining whether a full review is appropriate.
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Tax Resolution Experts Of America, Inc.
Doing business as TREA
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