Offer in Compromise: Settle IRS Debt for Less

What Is an Offer in Compromise?

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.

Do I Qualify for an Offer in Compromise?

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.

What Does an OIC Cost to File?

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.

How Long Does It Take?

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.

Why Not Use a National Tax-Relief Firm?

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. Our team has decades of combined IRS experience and has helped thousands of clients resolve balances ranging from five figures to over a million dollars.

How Offer in Compromise Works for Coastal Bend Taxpayers

Corpus Christi's economy runs on the port, refining and petrochemical operations, commercial fishing, and a large base of self-employed contractors who serve the oil and gas industry along the Gulf Coast. Each of those income types produces its own pattern of IRS trouble, from underreported 1099 income to payroll shortfalls during slow seasons. When our team evaluates a offer in compromise case, we start by pulling a full IRS account transcript so we know exactly what the agency has on file before we advise you on next steps.

Every case is different, but the process generally follows the same arc. First, we confirm your filing compliance, since the IRS will not approve most resolution options, including offer in compromise, until all required returns are filed. Second, we gather the financial documentation the IRS requires to evaluate your situation, income, expenses, assets, and household size. Third, we prepare and submit the request, then manage all correspondence and negotiation with the IRS so you are not fielding calls from a Revenue Officer or the Automated Collection System on your own.

What Coastal Bend Residents Should Do Before Calling

If you already have a copy of your most recent IRS notice, keep it nearby when you call. It is not required, our specialists can pull your transcript once you are retained, but having the notice number and the tax years referenced speeds up the first conversation. If you have not filed one or more years of returns, do not wait for that to be resolved first. Filing history and offer in compromise eligibility are addressed together as part of the same engagement.

Homeowners and business owners in Nueces, San Patricio, Aransas, Kleberg, and Jim Wells counties reach out to us for the same reason: the IRS collection timeline does not pause for hurricane season, a slow shrimp harvest, or a refinery turnaround that cuts overtime pay. Our team treats every consultation as time-sensitive and moves as quickly as the facts of your case allow.

Frequently Asked Questions About Offer in Compromise

How soon should I contact Corpus Tax Law about offer in compromise?

As soon as you receive a notice or realize you cannot pay what you owe. Some IRS deadlines, particularly around levies and garnishments, run in days rather than months. Even when there is no hard deadline, cases that start earlier have more resolution options available.

Will hiring a firm stop the IRS from contacting me directly?

Yes. Once we file Form 2848 (Power of Attorney), the IRS is required to direct future correspondence and calls to our office rather than to you. This alone reduces stress for most clients dealing with offer in compromise situations.

Do you handle cases outside Corpus Christi city limits?

Yes. We represent taxpayers throughout the Coastal Bend, including Portland, Robstown, Alice, Kingsville, Ingleside, Aransas Pass, and Rockport, plus clients nationwide for federal matters since everything is handled remotely by phone and secure document portal.

A Representative Coastal Bend Case

Cases like this are common along the Gulf Coast, where income swings with drilling activity, shrimping seasons, and hurricane-driven construction cycles. A offer in compromise case that looks straightforward on paper can be complicated by a missed filing year, a joint return with a separated spouse, or assets held across state lines. We walk through those wrinkles during the free consultation so nothing catches you by surprise later in the process.

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: Portland, Robstown, Alice, Kingsville, Ingleside, Aransas Pass, Rockport, and Flour Bluff, in addition to clients statewide for federal matters.