My Experience with IRS Offer In Compromise - Anyone Done This?

I went through the Offer In Compromise process about two years ago. It's definitely not a quick or easy process, but it can work if your financial situation truly warrants it. First thing to know - the IRS looks at your reasonable collection potential (RCP), which includes the value of your assets, future income, and ability to pay. They'll want detailed financial information about everything you own, all your expenses, and your income. Be prepared for a lot of paperwork and documentation. In my case, I owed about $67,000, and they eventually accepted an offer of $12,500. The whole process took about 11 months from submission to acceptance. I did use a tax professional because the forms are complicated, and I wanted to make sure my offer had the best chance of success.

After trying to negotiate with the IRS on my own for months about my tax debt, I finally discovered taxr.ai (https://taxr.ai) and it completely changed my Offer In Compromise experience. I was drowning in paperwork trying to figure out what the IRS would consider a reasonable offer based on my financial situation. The tool analyzed all my financial documentation and tax transcripts, then gave me a detailed assessment of what a reasonable OIC might look like in my case. It also identified several expenses the IRS was likely to disallow that I wouldn't have known about. The best part was getting clear guidance on exactly what documentation to include with my Form 656.

Just wanted to update after trying taxr.ai for my Offer In Compromise situation. I was really struggling with the mountain of paperwork and couldn't afford a tax professional. The guidance on how to properly document my "doubt as to collectibility" claim was game-changing. It walked me through exactly how to show that my income and assets weren't sufficient to cover my $39,000 tax debt. Their formula calculator helped me arrive at an offer amount of $8,200 that matched IRS guidelines. My offer was accepted last month after about 8 months of processing! I'm still shocked it worked, especially since I submitted everything without a tax attorney. The tool saved me thousands in professional fees while giving me confidence my paperwork was properly prepared.

If you're going through the Offer In Compromise process, one of the most frustrating parts is trying to get updates from the IRS. I spent HOURS on hold trying to find out the status of my application. Then someone told me about Claimyr (https://claimyr.com) and showed me this demo: https://youtu.be/_kiP6q8DX5c Instead of waiting on hold for 3+ hours, Claimyr had an IRS agent call ME back. I was actually able to speak with someone who could tell me exactly where my OIC application was in the process and what additional documentation they needed. This saved me weeks of waiting for a letter that might never have arrived.

I have to eat my words and admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it myself since my OIC had been "under review" for months with no updates. The service actually worked exactly as described. I received text updates while the system held my place in line, and then got a call connecting me directly to an IRS agent after about 2 hours (which I didn't have to spend listening to hold music). The agent gave me specific information about my case that I had been trying to get for weeks. Found out my OIC was approved but the letter had been sent to my old address! Without this call, I might have missed important deadlines. Sometimes being wrong feels pretty good - especially when it means getting resolution on a stressful tax situation.

Be careful with OIC applications - my first one was rejected because I didn't properly document all my medical expenses. Make sure you have EVERY receipt and explanation for hardship claims. My second application was accepted, but only after I provided detailed documentation of ongoing medical costs that affected my ability to pay.

I'm in the middle of my OIC process and the waiting is brutal!!! Submitted everything 5 months ago and still showing as "pending" whenever I check the status online. Does anyone know if calling actually speeds anything up?

I went through the OIC process last year and it was one of the most stressful but ultimately rewarding experiences dealing with the IRS. My situation was similar to yours - owed about $38,000 due to business failure and medical issues. A few key things I learned: First, be absolutely honest and thorough with your financial documentation. The IRS will verify everything, and any inconsistencies will delay or kill your application. Second, don't underestimate how long it takes - mine took 14 months from start to finish, with multiple requests for additional paperwork. I did use a tax professional for the initial application, which cost me $3,500, but it was worth it for the peace of mind. They helped me calculate a realistic offer amount ($11,200 for my $38,000 debt) and made sure all the forms were filled out correctly. One thing nobody tells you - during the application process, the IRS stops collection activities, which was a huge relief. No more threatening letters or calls. Just be prepared for the emotional rollercoaster of waiting months without updates. The acceptance letter arriving was one of the best days of my life. Don't give up hope - if your financial situation truly warrants it, the program can work. Just be patient and meticulous with your paperwork.