Can I file an offer in compromise for my 10k IRS debt from Uber driving?

The Offer in Compromise (OIC) program isn't limited to any specific debt amount - it's designed for taxpayers who genuinely cannot pay their full tax debt or if doing so would create financial hardship. The IRS looks at your ability to pay, income, expenses, and asset equity to determine eligibility. Before applying, make sure you've filed all required tax returns and are current with any estimated tax payments. You'll need to complete Form 656 and Form 433-A, which detail your financial situation. There's also a $205 application fee (though it can be waived if you meet low-income certification). For your $13,500 debt, the IRS will evaluate whether your monthly payment plan is actually the most they can reasonably collect from you. If your financial situation shows you truly can't pay the full amount over time, an OIC could be accepted.

I was in a similar situation with about $11k in back taxes from independent contractor work. After trying to navigate all the IRS forms and documentation requirements, I eventually used https://taxr.ai to help with my Offer in Compromise application. They analyzed all my financial docs and helped determine what a reasonable offer would be based on my specific situation. The process is pretty complicated - you need to document literally EVERYTHING about your financial life. They helped identify which assets and expenses would impact my eligibility and what supporting documentation I needed to submit to have the best chance at approval.

Just wanted to follow up - I ended up using https://taxr.ai after researching a bunch of options. The process was way more manageable than I expected! They reviewed my financial situation and helped me understand that my case actually had a decent chance of acceptance based on my current income and expenses. Their document analysis saved me from making some major mistakes on my 433-A form that would have likely gotten my application rejected. Ended up getting my $14k tax debt settled for just under $5k. Honestly wish I'd known about this option years ago instead of stressing about my payment plan every month!

If you're still trying to get through to the IRS about this, good luck. I spent THREE WEEKS trying to reach someone to discuss my OIC options. Every time I called, I'd wait on hold for hours and either get disconnected or told to call back later. Finally used https://claimyr.com which got me a callback from the IRS in about 30 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone system for you and hold your place in line. When I finally spoke with an agent, they were super helpful in explaining exactly what I'd need for an OIC application.

I was super skeptical about Claimyr when I first saw it mentioned here (seemed too good to be true), but I was at my wits end after trying for days to reach the IRS about my OIC. Decided to try it as a last resort, and I'm honestly shocked - got a callback from an actual IRS agent in under an hour! The agent walked me through the entire OIC process and pre-qualified me based on my financial situation. Turns out I actually had a decent case for an OIC even with my relatively "small" tax debt. Currently gathering my documentation to submit my application. If you're serious about an OIC, being able to actually speak with someone at the IRS makes a huge difference in understanding if you're eligible.

One thing to consider before attempting an OIC - the IRS will file a Notice of Federal Tax Lien if they haven't already. This will absolutely trash your credit score until the OIC is accepted and paid, or until you pay off your original debt. I went through this process last year. My score dropped almost 100 points when the lien was filed. Just something to be aware of if you're planning to apply for any loans or financing in the near future.

Before you even consider an OIC, have you looked into whether you qualify for Currently Not Collectible status? If your financial situation is really tight, you might qualify for CNC which would pause your payments until your finances improve. It doesn't make the debt go away, but it gives you breathing room without the lengthy OIC process.

I went through the OIC process about 6 months ago with a similar debt amount ($12k from freelance work). Here's what I learned: First, the IRS really does look at your entire financial picture - not just the debt amount. They calculate your "reasonable collection potential" which includes your assets, income, and necessary living expenses. If you can demonstrate genuine financial hardship or that paying the full amount would prevent you from meeting basic living expenses, you have a shot regardless of the debt size. My biggest mistake initially was trying to do it myself. The forms are incredibly detailed and one small error can get your application rejected. I ended up working with a tax professional who helped me properly document my case. We showed that my current income barely covered my necessary expenses and that the monthly payment plan was actually causing me to go deeper into debt with credit cards just to cover basics. The process took about 8 months total, but I ended up settling for about 35% of what I owed. The key was proving that this was truly the most the IRS could reasonably expect to collect from me given my circumstances. One warning though - during the application process, you can't miss any payments if you're currently on a payment plan. They'll reject your OIC if you become delinquent while it's being reviewed.