The IRS Offer in Compromise (OIC) program allows eligible taxpayers to settle their IRS debt for less than the full amount owed. But approval isn’t automatic—and submitting the wrong application can delay relief or result in automatic rejection.

At Polaris Tax & Accounting, we help individuals and businesses in Plantation, FL navigate the Offer in Compromise process strategically to reduce their total tax burden and get a clean slate.

What Is an Offer in Compromise?

An Offer in Compromise is a tax resolution program that allows qualifying taxpayers to negotiate a reduced payoff amount with the IRS if:

  • They can’t afford to pay the full balance

  • There is doubt about the amount owed

  • Collecting the debt would create unfair economic hardship

This is one of the most powerful tools in the IRS toolkit—but the rules are strict, and the paperwork is extensive.

Do You Qualify for an OIC?

To qualify, the IRS must determine that your:

  • Income

  • Expenses

  • Asset equity

…support the conclusion that you cannot reasonably pay your debt in full, now or in the future.

General OIC Eligibility Requirements:

  • You’ve filed all required tax returns

  • You are not currently in bankruptcy

  • You’ve made required estimated tax payments

  • You’ve submitted Form 656 and Form 433-A (or 433-B for businesses)

  • You are in compliance with payroll deposits (if applicable)

Polaris will help you assess eligibility and avoid submitting an application that’s destined for rejection.

IRS Formula for Offer in Compromise

The IRS uses a “reasonable collection potential” formula:

Knowing how to correctly value assets, document expenses, and time the offer is critical. Polaris can help you position your financials in a way the IRS is more likely to accept.

Mistakes to Avoid When Filing an Offer in Compromise

Many taxpayers try to DIY the process or hire low-cost national firms with high rejection rates. Common errors include:

  • Overreporting assets or income

  • Missing key expenses (e.g., child care, health care, secured debts)

  • Not using national/local expense standards properly

  • Submitting an OIC while collections are still active

  • Failing to appeal a rejected OIC properly

We’ve helped clients reduce tax debts from six figures to as little as $1,200 by doing it right the first time.

What Happens If the Offer Is Accepted?

  • IRS collections stop

  • Federal tax liens may be released

  • You’ll be on a 5-year compliance requirement (stay current on future filings)

Once accepted and paid, your tax debt is permanently resolved.

What Happens If the Offer Is Rejected?

You have the right to:

  • Submit additional documentation

  • Appeal the decision

  • Pursue another resolution method (Installment Agreement, CNC)

We provide full IRS negotiation support and handle appeals if necessary.

Plantation, FL’s Local Offer in Compromise Experts

We work with taxpayers across Broward County and can help whether you’re:

  • A W-2 earner behind on taxes

  • A small business owner with unfiled returns

  • A 1099 contractor overwhelmed by IRS notices

Our office is located at:

150 S Pine Island Rd, Suite 300, Plantation, FL 33324

Schedule your consultation today:


👉 Schedule Here

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