If you’re overwhelmed by back taxes, facing liens or levies, or losing sleep over letters from the IRS, you’re not alone. Many Plantation taxpayers have heard the ads claiming you can “settle your tax debt for pennies on the dollar.” But is that actually true?

The answer: sometimes. The IRS does have a formal program called the Offer in Compromise (OIC) that lets qualified taxpayers settle their tax liability for less than the full amount owed. But approval is far from automatic—and most people get denied if they go it alone or misunderstand the rules.

In this blog, we’ll break down how the OIC process really works, who qualifies, and what red flags to avoid. We’ll also explain why Polaris Tax & Accounting’s approach gives you the best shot at success.

What Is an Offer in Compromise?

An Offer in Compromise is a legal agreement between you and the IRS that settles your tax debt for less than you owe. It’s not a loophole—it’s an official resolution strategy outlined in the Internal Revenue Code. The IRS only accepts an offer if it believes:

  • You can’t pay the full amount,
  • The offer represents the most it can expect to collect within a reasonable time, and
  • You are compliant with your current filing and payment obligations.

For most taxpayers, this means showing severe financial hardship and a lack of assets that could be liquidated.

Common Reasons OICs Get Denied

Many applicants get rejected for avoidable mistakes:

  • Submitting an offer while still behind on recent filings
  • Understating income or overstating expenses
  • Filing under the wrong OIC category
  • Failing to include the proper initial payment or documentation

Even if the IRS doesn’t reject your application outright, it may counter with a much higher settlement or take 12–24 months to make a decision.

Do You Qualify for an Offer in Compromise?

You’re more likely to qualify if:

  • You’re current on all required tax filings
  • You can’t afford to pay your full tax balance through monthly payments or asset liquidation
  • Your household income is modest relative to your tax debt
  • Your financial hardship is documented and verifiable

We assess all of this in a confidential case review before submitting anything to the IRS.

Polaris’ Proven Approach to IRS Settlement

Most national firms treat the OIC like a sales funnel. We don’t. At Polaris, we:

  • Review your entire IRS transcript and account history
  • Run detailed financial analysis and settlement models
  • Use insider knowledge of IRS collection practices
  • Submit only well-supported, high-probability offers

This isn’t just paperwork—it’s a financial and legal strategy. And because we’ve also helped clients with Penalty Abatement, Installment Agreements, Tax Lien Removal, and Wage Garnishment Stops, we know when an OIC makes sense—and when a better option exists.

What Happens After You Apply?

Once the IRS receives your application:

  • You’ll continue to make estimated payments based on your offer unless the IRS says otherwise.
  • Collections are usually paused while they review your case.
  • If the offer is accepted, your debt is cleared once you meet all terms.
  • If rejected, you can appeal within 30 days or consider alternative strategies.

Real Help from Local Experts in Plantation

We’re located right here in Plantation, just off Pine Island Road. That means fast in-person meetings, real accountability, and year-round support—not a disappearing act once you sign the paperwork.

If you’re considering an OIC, let us review your eligibility and present honest options before the IRS makes a move you can’t undo.

Schedule a Private Consultation →

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