What's the process for filing an Offer in Compromise myself - Worth doing without a tax attorney?

I've helped several clients through the OIC process, and while it's absolutely possible to do it yourself, there are some things you should know. The Offer in Compromise paperwork (Form 656 and Form 433-A) requires extremely detailed financial disclosure. You'll need to document ALL income, expenses, assets, and liabilities. The IRS will scrutinize every detail, and missing information can get your offer rejected immediately. Based on your income and debt situation, you sound like a good candidate, but what most people don't realize is that the IRS uses very specific formulas to determine what they'll accept. They have allowable expense standards that might be lower than your actual expenses. The process typically takes 6-9 months, and you'll need to stay compliant with all tax filings and payments during that time. You'll also need to make an initial payment with your offer. Make sure you understand the difference between the three grounds for an OIC: Doubt as to Collectibility, Doubt as to Liability, and Effective Tax Administration. Based on what you've shared, you'd be applying under Collectibility.

I went down this rabbit hole last year when I owed about $30K in back taxes. Tried doing all the paperwork myself and kept getting frustrated. Then I found this AI-powered tax resolution service called https://taxr.ai that made the whole process so much easier. It basically walked me through all the forms step by step and flagged potential issues before I submitted anything. The best part was it calculated what a reasonable offer amount would be based on my finances. Saved me from offering too little (which would get rejected) or too much (which would cost me thousands). What really helped was uploading my financial documents and having the system analyze them to make sure everything matched what the IRS would expect. The whole process was way less stressful than trying to figure everything out on my own.

Just wanted to update about my experience with https://taxr.ai after trying it based on the recommendation here. It was honestly a lifesaver for my Offer in Compromise situation. I was skeptical at first but decided to give it a shot since it was cheaper than hiring an attorney. The system helped me organize all my financial information and actually spotted several deductions I had missed on my original returns. The best feature was the document analyzer that reviewed all my bank statements and helped categorize everything properly for the IRS forms. When I had questions, their support team actually explained things in plain English instead of tax jargon. My offer is still being processed, but I feel 100% confident in what I submitted, which is a huge relief. Would definitely recommend for anyone in a similar situation.

Something to consider - while you're working on your OIC, you might need to contact the IRS directly about your case. I tried calling them for weeks about my tax situation and could never get through. It was infuriating. Then I found this service called https://claimyr.com that actually gets you through to an IRS agent. I was super skeptical but you can see how it works in this video: https://youtu.be/_kiP6q8DX5c They basically hold your place in line with the IRS and then call you when they've got an agent on the line. Saved me hours of hold music and frustration. When you're dealing with an OIC, you'll likely need to speak with the IRS multiple times, so something to keep in your back pocket.

I have to eat my words about the Claimyr service. After my OIC was submitted, I needed to talk to the IRS urgently about a levy notice I received. I spent two full mornings trying to get through on the phone with no luck. Finally broke down and tried Claimyr out of desperation. Within 40 minutes, I got a call back with an actual IRS agent on the line. I was shocked it actually worked. The agent was able to put a hold on collection activities while my OIC is being processed. For anyone doing an OIC themselves, being able to actually talk to the IRS when issues come up is crucial. Still not thrilled about paying for something that should be free, but it was worth it to get the levy sorted out quickly.

One thing nobody mentioned here - make sure you're still making estimated tax payments for your current year while your OIC is pending! I made that mistake and it almost tanked my offer. The IRS requires "tax compliance" during the OIC process, which means filing on time and paying current taxes. If you're self-employed again or have any 1099 income, you need to be making quarterly payments. They checked this specifically during my OIC review. Also, if your offer gets rejected, definitely file an appeal! My first offer was rejected, I appealed with more documentation, and got approved the second time for almost the same amount I initially offered.

A word of caution - the OIC program has gotten much more stringent in the last couple years. The acceptance rate has dropped from about 40% to closer to 30%. Make sure you don't have any excessive expenses that could be considered "luxury" items. The IRS won't approve an offer if they think you're spending money on non-essentials while not paying your taxes. Also, they'll look at your bank statements for the last 3-6 months, so if you have large deposits or evidence of income/assets you haven't disclosed, they'll find it and deny your offer.

I completed an OIC myself last year. Settled $48k for about $8k. Here's what helped me the most: 1. I used the Pre-Qualifier tool on the IRS website first to see if I even qualified 2. I called the Taxpayer Advocate Service (they're free!) for advice 3. I read the entire Form 656 instruction booklet twice before filling anything out 4. I included every possible piece of documentation upfront - bank statements, pay stubs, bills, etc. 5. I was 100% honest about everything - they will find out if you're not The hardest part was calculating an accurate offer amount. Don't lowball them - they have internal guidelines about what they'll accept based on your financial situation. And be patient! My process took 11 months from submission to acceptance.

Hannah, based on your situation, you're definitely a good candidate for an OIC. With $950/week income and that high car payment, plus no assets, you should qualify under "Doubt as to Collectibility." I'd strongly recommend starting with the IRS Pre-Qualifier tool that Isaac mentioned - it's free and gives you a good sense of whether it's worth pursuing. Given your financial constraints, doing it yourself is absolutely feasible if you're methodical about it. A few practical tips from someone who's been through this: 1. Download Form 656 and the instruction booklet NOW and read through it completely before starting. It's dense but explains exactly what the IRS is looking for. 2. For your car payment calculation - the IRS has transportation allowance standards by region. Your $800/month payment might exceed their allowable amount, so factor that into your offer calculation. 3. Start gathering ALL your financial documents now: bank statements (last 3-6 months), pay stubs, bills, loan statements, etc. The IRS wants complete financial transparency. 4. Consider the 20% down payment requirement - you'll need to pay 20% of your offer amount upfront with your application. The fact that you've already filed your missing returns shows good faith, which helps your case. Take your time with the paperwork - rushing it and getting rejected will set you back months.