Offer in Compromise (OIC) – Settle Your IRS Tax Debt for Less

Name: MILDRID ESUA, CPA, PLLC
Price range: $

Offer in Compromise (OIC) – IRS Debt Settlement Program

If you owe the IRS more than you can afford to pay, you are not out of options. One of the most powerful solutions available is an Offer in Compromise (OIC)—a program that may allow you to settle your tax debt for less than the total amount owed.

What Is an Offer in Compromise?

An Offer in Compromise allows taxpayers to negotiate with the IRS and pay a reduced amount based on their financial situation.

The IRS evaluates each case individually, considering:

Your gross income
Your monthly expenses
Your asset equity
Whether paying in full would create financial hardship

How We Help You Qualify

At Mildrid Esua, CPA, PLLC, we handle the entire process for you:

✅ Pre-qualify your case
✅ Analyze your full financial position
✅ Confirm eligibility
✅ Prepare and submit your OIC application
✅ Represent you directly before the IRS

We take the complexity and stress out of the process—so you don’t have to deal with the IRS alone.

Do You Qualify for an OIC?

To be eligible, you must meet certain IRS requirements:

✅ All required tax returns must be filed
✅ You must be current on estimated tax payments
✅ Business owners must be current on payroll taxes
✅ You cannot be in active bankruptcy

The IRS also expects that you have made reasonable efforts to pay your debt, such as:

Liquidating non-essential assets
Using available funds or investments (excluding protected retirement accounts in most cases)
Reducing excess expenses

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Why Professional Guidance Matters

Submitting an Offer in Compromise is not simple. It requires a detailed financial analysis similar to an audit.

Our experienced CPAs will:

Help you fully understand the process
Determine if an OIC is truly your best option
Explain any potential risks or consequences
Ensure your financial story is properly presented to the IRS
Handle all communication with the IRS on your behalf

👉 Important: We strongly recommend that you do not communicate directly with the IRS. Direct all IRS correspondence to your CPA to protect your position.

What the IRS Looks For

The IRS prefers full payment whenever possible.

If your financial records show you can pay in full, your OIC will likely be rejected.

However, your offer may be accepted if:

Paying in full would leave you unable to cover basic living expenses
Your financial situation demonstrates true economic hardship

How Your Offer Amount Is Calculated

Your Offer in Compromise is based on your Reasonable Collection Potential (RCP).

Basic Formula:

Net realizable value of assets + (Monthly income – allowable monthly expenses)
= Minimum Offer Amount

This total is then multiplied by a factor (typically 12 or 24 months) depending on your payment plan.

Payment Options

When submitting an OIC, you must include:

Application fee (non-refundable)
Initial payment

Lump Sum Cash Offer

Pay approximately 20% upfront
Remaining balance paid in up to 5 payments after approval

Periodic Payment Plan

Make initial payment
Continue monthly payments during IRS review
Complete payments after acceptance