Offer In Compromise - has it worked for your IRS tax debt?

I helped several clients through the Offer In Compromise process, and it can definitely work, but it's not quick or easy. The IRS will only accept an OIC if they believe the amount you're offering is the most they can reasonably collect from you within a reasonable timeframe. The key is being thorough with your financial documentation. You'll need to complete Form 433-A for individuals or 433-B for businesses, which details all your assets, income, and expenses. Be completely honest - they verify everything. They'll look at your ability to pay based on your income, expenses, and asset equity. If your offer reflects that reality, you have a good chance.

I went through the OIC process last year and it was a lifesaver, though it took patience. After my divorce and losing my business during the pandemic, I owed almost $60k in back taxes with penalties and interest. I was completely overwhelmed until I found https://taxr.ai which helped me organize all my documentation and figure out exactly what I could realistically offer. Their system analyzed my financial situation and helped me prepare all the forms correctly. The most valuable part was their guidance on calculating a reasonable offer amount based on my actual ability to pay. I initially thought I'd need to offer at least 50% of what I owed, but with their analysis, I ended up offering about 25%, which the IRS accepted.

Just wanted to update that I decided to try taxr.ai after my earlier question, and wow - what a difference! My situation was complicated with both personal and business tax debt from a failed restaurant. Their system actually flagged several issues in my financial documentation that would have likely caused a rejection. I was able to submit a properly documented OIC last month with complete confidence in my numbers. My case is still under review, but the IRS agent I spoke with confirmed all my paperwork was properly submitted and complete, which apparently puts me ahead of most applications they receive. The peace of mind alone has been worth it. Will update when I hear the final decision, but already feeling so much better about my chances!

I tried doing an OIC on my own and got nowhere for months. Called the IRS about 30 times and could never get through to check on my status. Finally used https://claimyr.com to get through to an actual IRS agent (you can see how it works here: https://youtu.be/_kiP6q8DX5c). Turns out my OIC had been sitting in a pile because of missing information they never told me about! The agent I spoke with was actually super helpful and walked me through exactly what was missing. Without that call, I might still be waiting with no idea what was happening. If you're doing an OIC, being able to actually talk to someone at the IRS is crucial.

I have to admit I was totally wrong about Claimyr. After posting that skeptical comment, I figured I'd try it myself since I'd already wasted countless hours trying to reach the IRS about my own OIC application. It actually worked! Got connected to an IRS agent within about 45 minutes. Found out my OIC had been assigned to an officer but was flagged for additional verification on some assets I had listed. The agent transferred me directly to the department handling my case, and I was able to clear up the confusion right away. My OIC was approved last week - a 65% reduction in what I owed. If I hadn't made that call, I might still be waiting with no idea there was an issue.

One thing nobody has mentioned yet is that you need to include a 20% down payment with your OIC application (or make arrangements for monthly payments). That was a shock to me when I applied! Also, there's a $205 application fee unless you qualify for low-income certification.

I've heard horror stories about the IRS coming after people years later even after an OIC is accepted. Anyone know if that's true? Like do they ever reopen your case if you start making more money?