ESD overpayment of $13k - Anyone had success with Offer of Compromise?

Yes! I submitted an Offer of Compromise last year and got my $8,500 overpayment reduced by almost 70%. The key is documentation - you need to prove financial hardship. I submitted: 1) A detailed household budget showing income vs. expenses, 2) Bank statements for the last 3 months, 3) Proof of any medical expenses or other hardships, 4) A letter explaining why paying the full amount would cause severe financial hardship. The ESD review took about 6 weeks, but it was absolutely worth it. Make sure to follow their exact instructions on the form.

sry bout ur situation, i had like $6k overpayment but didnt even try that compromise thing. just set up a payment plan for like $50/month. takes 4ever but at least no collections or anything. good luck!!

I tried that Offer of Compromise thing and THEY DENIED ME!! Said I didn't show 'sufficient hardship' even though I literally had $28 in my checking account when I applied. This system is RIGGED against us. They just want their money back no matter if it ruins your life. Good luck but don't get your hopes up. ESD is the WORST.

The Offer of Compromise program has specific criteria for approval. From what I've seen helping clients, success depends on three factors: 1) Demonstrating genuine financial hardship (not just budgetary tightness), 2) Proving the hardship isn't temporary, and 3) Showing good faith that you weren't trying to defraud the system. If your overpayment was due to an honest mistake rather than intentional misrepresentation, make that very clear in your application. Also, consider calling ESD directly to discuss your specific situation before submitting. They can sometimes give guidance on what documentation will be most helpful for your case.

If you're struggling to reach someone at ESD about your Offer of Compromise, try using Claimyr (claimyr.com). I was in the same boat with a huge overpayment and couldn't get through on the phones for weeks. Claimyr got me connected to an ESD agent in about 20 minutes who walked me through exactly what I needed for my compromise offer. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 - definitely worth it to get actual help instead of guessing what ESD wants.

Update: I found the Offer of Compromise form on the ESD website. It's asking for a LOT of financial documentation - tax returns from last 2 years, bank statements, pay stubs, household expenses, assets, debts, etc. Feels invasive but I guess they need to verify the hardship is real. Has anyone here completed this form recently? How detailed did you get with your financial explanation?

i had a friend who got an overpayment reduced by like half but she had to provide proof she was homeless for a while after covid and had medical bills. they dont just give reductions to everyone from what i heard. you have to show real hardship not just that its inconvenient to pay back

One important thing to note: if your Offer of Compromise is accepted, the forgiven amount may be reported to the IRS as income. Just something to be prepared for if you get a significant reduction.

I just submitted my Offer of Compromise today. I offered to pay 35% immediately if they'll forgive the rest. I included everything - bank statements showing my minimal savings, documentation of my rent increase, medical bills, the whole financial disaster of my life laid bare. Now I just have to wait and see if they'll accept it. I'll update this thread when I hear back in case it helps anyone else in the same situation. Thanks everyone for your advice.

I'm in a similar situation with a $9,800 overpayment from 2020. Reading through all these responses gives me some hope that the Offer of Compromise might actually work. @Sofia Torres - really hoping your application gets approved! Can you keep us updated on how long the review process takes? I'm still gathering all my financial documents but this thread has been super helpful in understanding what to include. The detail about potential tax implications on forgiven debt is something I hadn't considered - thanks @Zainab Omar for that heads up. It's frustrating that we have to jump through so many hoops for what were mostly honest mistakes during such a chaotic time.