What is an Offer in Compromise?

An offer in compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.

Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.

In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the Reasonable Collection Potential (RCP). The RCP is how the IRS measures the taxpayer’s ability to pay and includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. The RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.

We will work with you to present your financial information in the best possible light, and to thus increase the chance of successfully compromising your tax owed.

What should you do to qualify for an Offer in Compromise?

It is very important for you to hire ethical tax professional to assist you with your tax matters.

Not everyone qualifies for an Offer in Compromise, as each person’s financial situation is different.

Pre-qualifying for an Offer in Compromise is an important step to take prior to attempting an Offer in Compromise with the IRS. The Internal Revenue Service issued a consumer alert advising taxpayers to beware of promoters’ claims that tax owed can be settled for “pennies on the dollar” through the Offer in Compromise Program.


Client Testimonials

Here’s what our clients are saying about their experience.

Andy Yu is the best CPA in Southern California by far. His past experience really shines when presenting our options and creating a strategy in resolving the tax dispute. His insight on the audit process delivered a prompt resolution.

I would highly recommend Andy Yu to anyone who is dealing with an IRS tax audit. He was very professional and was able to reduce my tax owed for a fraction. You have earned a client for life.

Andy Yu is passionate about helping his clients. He identified all the mistakes and swiftly resolved my tax disputes. Thank you Andy!