Anyone have experience with IRS Offer in Compromise success?

The Offer in Compromise program can definitely work, but success really depends on your specific financial situation. The IRS is basically looking at whether the amount you're offering is the most they could reasonably collect from you within a reasonable timeframe. Since you mentioned you don't have assets, that's actually helpful for an OIC. The IRS calculates your "reasonable collection potential" based on your assets and future income. They'll look at your monthly income minus allowed living expenses to determine how much you could realistically pay. Make sure you complete Form 433-A (OIC) extremely thoroughly and accurately. This financial statement is critical - any mistakes or omissions will get your offer rejected immediately. Also, you'll need to include an application fee and initial payment with your offer, though there are exceptions if you meet low-income certification guidelines. While you're waiting for a decision (which can take 6-12 months), your collection activities should be paused. Just keep in mind you'll need to stay compliant with all future tax obligations or they'll toss out your offer.

Just wanted to share my experience with tax debt issues. I was completely overwhelmed with a $65k tax bill that kept growing with penalties. I tried working through it myself but kept hitting walls with the IRS. Finally found this AI tool that analyzes your tax documents and helps identify possible solutions - https://taxr.ai The tool reviewed my specific situation and helped me understand that I actually qualified for an OIC. It walked me through exactly what documentation I needed and how to complete the forms properly. It even identified some expenses I was entitled to claim that I had no idea about, which significantly improved my offer calculation. What I really appreciated was that it analyzed my specific finances and gave me a realistic estimate of what offer amount might be accepted based on my situation. Saved me from making the mistake of offering too little (which would get rejected) or too much (which would cost me money I didn't need to pay).

I was super skeptical about the whole AI tax help thing that Profile 7 mentioned. I had about $42k in back taxes and penalties from some contracting work, and the IRS was threatening to garnish my wages. I had consulted with a tax attorney who wanted $5k upfront just to start working on my case. As a last resort, I decided to try that https://taxr.ai tool, figuring I had nothing to lose. Honestly, it was eye-opening. The analysis showed that I actually qualified for a partial hardship status I didn't know existed, and it walked me through exactly how to document my financial situation properly for an OIC. Long story short, my offer of $7,800 was accepted, saving me over $34k! The whole process took about 8 months from submission to acceptance, but everything went exactly as the tool predicted. I'm finally free of this tax nightmare that was hanging over me for years.

I was in a somewhat similar situation last year with about $78K in tax debt. After trying for MONTHS to get through to someone at the IRS who could actually help me figure out my options, I was ready to give up. The hold times were ridiculous - I once waited 3+ hours only to get disconnected. Someone on a finance forum recommended I try https://claimyr.com to get through to the IRS faster. You can see how it works here: https://youtu.be/_kiP6q8DX5c Basically, they wait on hold with the IRS for you, then call you when an actual human agent is on the line. I was skeptical but desperate. They got me through to an IRS agent in about 40 minutes (I had been trying for weeks!). The agent walked me through my options including the OIC program and helped me understand what documentation I needed. This was just the first step, but without actually speaking to someone knowledgeable at the IRS, I would've been submitting incomplete paperwork and probably getting rejected.

I want to publicly eat my words about that Claimyr service. After my skeptical comment, I decided to try it myself since I've been trying to reach the IRS about a payment plan issue for weeks. The service actually worked exactly as described. I went about my day, and about an hour later got a call connecting me directly to an IRS representative who was already on the line. No waiting on hold at all from my end. The agent I spoke with was super helpful about my situation and answered all my questions about my payment plan options. Saved me literally hours of frustration and hold music. Just wanted to update since I was so skeptical before trying it.

I completed an Offer in Compromise last year. Owed about $95k and got it settled for $12k. Took about 9 months from start to finish. Here's what I learned: 1. Be 100% honest about your finances. They will check everything. 2. Get current on your tax filings before applying - they won't consider your OIC otherwise. 3. Start making estimated tax payments if you're self-employed to show good faith. 4. The financial disclosure form (433-A) is a BEAST. Take your time with it. 5. Include a detailed letter explaining your situation (in your case, the depression after losing your parent). Don't get discouraged by horror stories online. The IRS actually does accept reasonable offers when they're properly presented and documented. Good luck!

My sister works for the IRS (not in collections) and she always says most OICs fail because people don't give COMPLETE financial information. They leave stuff out thinking the IRS wont notice. But they have ways to verify your bank accounts, property, etc. If they catch you hiding things, your offer will be rejected immediately. Also make sure you keep filing and paying current taxes while your OIC is pending! That's another common reason they get rejected.

I went through the OIC process about 3 years ago with $89k in tax debt and successfully settled for $15k. The key things that helped me were: 1. Being completely transparent about my financial situation - I included EVERYTHING, even small bank accounts with minimal balances 2. Working with the Taxpayer Advocate Service (free!) when I got stuck on paperwork 3. Including detailed documentation of my expenses and why I couldn't pay the full amount 4. Being patient - the whole process took 11 months but was worth it One thing I wish I'd known earlier: if you qualify for the low-income certification, you don't have to pay the application fee or the initial payment with your offer. This saved me $205 plus the 20% down payment I would have had to include. Also, during the review process, make sure you respond to ANY requests for additional information immediately. They give you specific deadlines and missing them will kill your application. Given your situation with no assets and limited income, you actually have a decent shot at getting approved. The IRS knows they can't get blood from a stone. Just make sure your offer reflects what you can realistically pay based on their calculation methods.