When you’re drowning in IRS debt, it can feel like there are no good options. But for many taxpayers in Lake Norman, NC, there is a real solution: the IRS Offer in Compromise (OIC). This program allows you to settle your tax debt for less than you owe—if you qualify. The key is understanding how the IRS determines your ability to pay and submitting a compelling, well-documented offer. That’s where Polaris Tax & Accounting comes in.

We serve Lake Norman individuals, small business owners, gig workers, and retirees who need more than cookie-cutter tax help. Our job is to break down the OIC process, determine if you’re a strong candidate, and manage every step of the filing and negotiation with the IRS.

What Is an Offer in Compromise?

An Offer in Compromise is a formal agreement between you and the IRS to settle your tax debt for less than the full amount owed. It’s not a loophole, and it’s not for everyone. But when used correctly, it can eliminate thousands (or even tens of thousands) in debt.

The IRS considers several key factors:

  • Your income and ability to earn
  • Living expenses (using IRS local standards)
  • Equity in assets (cars, home, business, retirement)
  • Future earning potential

If your “Reasonable Collection Potential” (RCP) is less than the amount owed, they may accept an offer based on that lower amount.

Why OICs Are Often Rejected (and How We Fix That)

More than half of all Offer in Compromise submissions are rejected—often because:

  • The paperwork is incomplete or inaccurate
  • The financial disclosures are vague or unsupported
  • The IRS overvalues your assets or income

At Polaris, we do more than fill out forms. We build a legal and financial case for why the IRS should accept your offer:

  • Comprehensive IRS transcript review
  • RCP calculation using both 12-month and 24-month models
  • Full documentation of income volatility, expenses, medical hardship, etc.
  • Direct communication with the IRS to fix errors or negotiate on your behalf

We don’t submit unless we believe the case is strong. And when the IRS pushes back, we’re already prepared.

Who Qualifies for an OIC?

You may be a strong candidate for an Offer in Compromise if:

  • You owe over $10,000 in IRS back taxes
  • Your income doesn’t support the full repayment
  • You have limited assets or access to cash
  • You are experiencing financial hardship
  • You’re self-employed or a contractor with inconsistent income

Even if you don’t qualify now, Polaris can help you create a strategy to improve your eligibility or pursue an IRS installment agreement instead.

Lake Norman Case Study

A local Lake Norman resident was facing $46,000 in IRS back taxes, penalties, and interest. After a free consultation, we discovered she was recently laid off, caring for her elderly parent, and had very little equity in her home. We submitted an OIC for $2,200 based on her RCP and supported it with full documentation. The IRS approved the settlement.

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Schedule Your Free Consultation

Don’t waste time or money on tax mills or DIY forms. Our Lake Norman team will walk you through the OIC process, protect your assets, and pursue the lowest legal settlement possible.

Schedule your free consultation now to learn whether an Offer in Compromise is right for you.