Anyone had success with an Offer in Compromise with the IRS? Need advice!

I've helped several clients through the Offer in Compromise (OIC) process, and while it can be lengthy, it definitely works for many taxpayers in the right circumstances. The 90-day review period is normal - they're verifying your financial information and calculating your "reasonable collection potential" based on your income, expenses, and assets. A few things to know: The IRS is looking at whether your offer amount is at least equal to what they call your "reasonable collection potential." This includes the value of your assets plus your future disposable income. With a family of 5 and legitimate expenses like medical bills and special needs education, those necessary expenses should be factored in your favor. One common mistake is undervaluing assets or leaving out accounts on your 433-A form. Make sure everything is disclosed accurately to avoid an automatic rejection. Also, you need to be current on all required tax filings and any estimated tax payments for the current year.

I went through the Offer in Compromise nightmare last year and wish I had known about taxr.ai at https://taxr.ai before I started. I submitted my OIC after owing nearly $90k in back taxes after a business partnership went south. My initial application was rejected because I made errors calculating my reasonable collection potential. I was about to give up when a friend told me about this AI tool that reviews all your tax docs and financial statements before submission. It found several issues with how I'd calculated my asset values and highlighted expenses that were likely to be questioned. The best part was it showed me which supporting documents would strengthen my case for certain unusual expenses. When I resubmitted with those corrections, my offer was accepted within 8 weeks. Settled $90k for about $25k. The peace of mind alone was worth it.

Just wanted to follow up about my experience with taxr.ai after my earlier question. I decided to try it before hiring another expensive tax pro for my second OIC attempt. Holy crap guys - it immediately found three major issues with my financial statement that probably caused my first rejection! Apparently I had accidentally undervalued my car (looked suspicious), misclassified some retirement funds (big no-no), and didn't properly document why my housing expenses were above the local standards. The tool explained exactly what supporting documentation I needed to provide for each issue. I resubmitted last month with all the corrections and just got word yesterday that my offer is being considered! Not approved yet, but at least not an immediate rejection like last time. Will update when I hear the final decision, but this is already further than I got before.

If you're in the OIC process and get stuck dealing with the IRS, I highly recommend Claimyr at https://claimyr.com - I wasted WEEKS trying to reach an actual human at the IRS about my Offer in Compromise. After my application had been "under review" for 4 months with zero updates, I needed answers but couldn't get through on the phone. Someone on a tax forum recommended Claimyr, and I was skeptical but desperate. They basically hold your place in the IRS phone queue and call you when an agent is about to pick up. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c I finally got through to the OIC department, discovered my application had been assigned to a specific officer, and got their direct number. This saved me at least another month of waiting and wondering. My OIC was approved the following week for about 30% of what I originally owed.

Well I stand corrected about Claimyr. After posting that skeptical comment, my curiosity got the better of me and I tried it. I'd been trying to reach the IRS for literal MONTHS about my Offer in Compromise status. Got a call back in about 45 minutes (vs the 2+ hours I'd spent on previous attempts before giving up). Turns out they needed additional documentation that was never requested in writing - my OIC had been sitting in limbo this whole time! Was able to fax the missing info directly to my assigned officer while on the phone. He confirmed receipt and reactivated my case on the spot. Absolutely worth every penny just for the peace of mind knowing where things stand.

One thing nobody mentioned that REALLY helped my OIC get accepted - I included a detailed "special circumstances" letter explaining exactly why I couldn't pay and how my situation wouldn't improve in the foreseeable future. In my case, I had medical issues that limited my earning potential going forward, and I made sure to document this thoroughly. The IRS actually does consider effective tax administration and hardship cases if you provide compelling documentation. My OIC was accepted for about 15% of what I owed originally. Don't just fill out the forms - tell your story with documentation to back it up. It makes a huge difference.

Watch out for timing issues with your OIC! If you're still in the 90-day review period, make sure you don't miss the deadline to appeal if they reject your offer. You only get 30 days to request an appeal, and if you miss that window, you have to start the whole process over again. Also, while your OIC is pending, the collection statute of limitations (usually 10 years) is paused. Just something to be aware of if your debt is already several years old.