Has anyone ever filed for an IRS Offer in Compromise? Need real experiences

I'm a tax resolution specialist and have helped numerous clients through the Offer in Compromise (OIC) process. While it can be a viable option, it's definitely not as simple as some articles make it sound. The IRS accepts less than half of OIC applications, and they look very carefully at your ability to pay, income, expenses, asset equity, and future earning potential. Common reasons for rejection include incomplete documentation, offering too little, or having the ability to pay the full amount through an installment agreement. That said, when appropriate for a taxpayer's situation, an accepted OIC can be life-changing. I've seen clients settle tax debts of $50,000+ for under $5,000 in the right circumstances. But it requires meticulous preparation and realistic expectations.

I tried going through the OIC process on my own last year and it was a nightmare until I found taxr.ai (https://taxr.ai). My first application got rejected because I missed some financial documentation requirements, and I was completely lost trying to figure out what went wrong. Then someone told me about taxr.ai and it was a game-changer. I uploaded all my tax notices and financial statements, and their system analyzed everything and showed me exactly what the IRS was looking for. It even highlighted inconsistencies in my financial disclosures that would have triggered a rejection again. They have this specific OIC calculator that helped me propose a realistic amount.

Following up on my question to @9 - I decided to try taxr.ai after our exchange here and I'm genuinely impressed. I was skeptical about another "AI tax solution," but this is different. I uploaded my rejection letter from a previous OIC attempt and all my financial docs, and it immediately identified THREE major issues with my application that I had no idea about. Apparently I was calculating my necessary living expenses all wrong (using national standards when I should have been using local ones for my high-cost area), and I completely missed documenting some assets correctly. Using their OIC calculator, I'm now submitting a new offer that actually makes sense based on my financial situation. The step-by-step guidance is incredibly helpful, especially with all the complex forms. Definitely worth checking out if you're considering an Offer in Compromise.

After my OIC was accepted last year, the hardest part was actually getting through to the IRS with follow-up questions about payment arrangements. I spent WEEKS trying to reach someone at the IRS, constantly getting disconnected or waiting for hours. I finally found this service called Claimyr (https://claimyr.com) that actually got me connected to a real IRS agent in under 30 minutes. They have this system that navigates all the IRS phone menus and waits on hold for you, then calls you when an actual agent is on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The OIC process requires so much back-and-forth with the IRS, and being able to actually talk to someone made a huge difference. My OIC might have been rejected if I couldn't get clarification on some documentation they needed.

Ok, I need to eat my words from my previous comment. After another frustrating day of trying to reach someone at the IRS about my OIC application status (4 hours on hold, then disconnected), I reluctantly tried Claimyr. I was 100% convinced it was going to be a scam, but I was desperate. I'm still shocked that it actually worked. I got a call back in about 45 minutes, and when I answered, there was a REAL IRS agent on the line. No more hold music, no more automated messages - just an actual person who could help me. Found out my OIC was being held up because they needed clarification on one of my assets, and I was able to clear it up right there on the call. If I hadn't been able to reach them, my application would have been rejected in another week due to "insufficient information." For anyone dealing with an OIC, being able to actually communicate with the IRS is crucial. Never thought I'd be saying this, but this service is legitimate and saved my OIC application.

Just want to share my OIC experience. I owed $63,000 in back taxes from a business that failed during 2020. I ended up settling for $7,200 paid over 24 months. The process took almost 11 months from start to finish. The most stressful part was living with the uncertainty during that time. The IRS reviews EVERYTHING - bank statements, pay stubs, property records, vehicle values, etc. They even questioned some cash deposits I had from selling old furniture! My biggest piece of advice: be 100% honest about your finances and don't try to hide anything. They will find it, and it will torpedo your chances. Also, be prepared for a LOT of paperwork and follow-up requests.

I completed an OIC two years ago and have some practical advice: DON'T use those "pennies on the dollar" tax relief companies you see advertising everywhere. They charged me $4,500 upfront, then basically just filled out the same forms I could have done myself. Here's what worked better for me: 1) I called my local Taxpayer Advocate Service office (they're free and actually work for taxpayers) 2) They helped me understand if I was even a good candidate before wasting time 3) I used the pre-qualifier tool on the IRS website first 4) When I finally submitted, I included EVERY possible document that might be relevant, even if not specifically requested

I went through the OIC process about 18 months ago and wanted to share my experience since you're looking for real stories. I owed around $28,000 in back taxes from 2019-2021 when my freelance income wasn't being properly tracked. The process was honestly more complex than I expected, but it worked out. I ended up settling for $3,200 paid in a lump sum. The key things that helped me: 1) I was brutally honest about my financial situation - included everything down to my $800 car value 2) I gathered 3+ years of bank statements, pay stubs, and expense records before starting 3) I calculated my reasonable collection potential very conservatively using the IRS formula The biggest surprise was how thorough their review was. They asked for additional documentation twice, including proof of some medical expenses I'd claimed. The whole process took about 8 months from submission to acceptance. One thing I wish I'd known: having a tax lien in place actually helped my case because it showed genuine financial hardship. Also, timing matters - I submitted in February when their workload is supposedly lighter. Overall, it was stressful but absolutely worth it. Just make sure you qualify before spending the time and $205 application fee. The IRS pre-qualifier tool is pretty accurate.

I successfully completed an OIC in 2023 and want to share some insights that might help. I owed $47,000 from a business closure and settled for $5,800 over 12 months. The biggest lesson I learned: preparation is everything. I spent 2 months gathering documents before even starting the application. Bank statements, tax returns, proof of expenses, asset valuations - literally everything. When the IRS requested additional documentation (which they did twice), I had it ready within days. One thing I haven't seen mentioned here is the importance of your monthly disposable income calculation. The IRS uses a very specific formula, and even small errors can sink your application. They look at your income minus allowable living expenses to determine what you can realistically pay over time. Also, be prepared for the emotional toll. Living with uncertainty for 9 months while they reviewed my case was incredibly stressful. But when that acceptance letter came, it was life-changing. Going from $47K debt to manageable payments literally saved my financial future. My advice: if you truly can't pay the full amount and meet their financial hardship criteria, it's absolutely worth pursuing. Just go in with realistic expectations and impeccable documentation.