If you owe more to the IRS than you could realistically ever repay, an Offer in Compromise (OIC) may provide a path to settling your tax debt for less than the full amount owed.
While advertisements often promote settling for “pennies on the dollar,” the reality is more complex. The IRS only approves an Offer in Compromise when it determines that collecting the full balance is unlikely. Qualification depends on strict financial formulas and detailed documentation.
For eligible taxpayers, however, an OIC can provide significant and permanent relief.
An Offer in Compromise is a formal proposal to settle your tax debt for a reduced amount. The IRS evaluates your:
Using this information, the IRS calculates what it believes it can reasonably collect. If your financial condition shows that full payment is not possible within the collection period, a reduced settlement may be approved.
Submitting an offer that is too low or unsupported will result in rejection.
The OIC process requires full financial disclosure and careful documentation. Mistakes, missing information, or unrealistic offers can delay the process or lead to denial.
A properly prepared Offer in Compromise includes:
With over 10 years of experience and more than 450 clients assisted, our firm helps Dallas taxpayers evaluate eligibility and submit well-prepared offers designed to withstand IRS scrutiny.
An Offer in Compromise is not the best solution for everyone. In some cases, installment agreements, penalty abatement, or other resolution strategies may be more appropriate.
Before submitting an offer, a full financial review is essential to determine whether you qualify and whether the expected outcome justifies the process.
If the IRS accepts your offer, strict compliance rules apply. You must:
Failure to remain compliant can cause the agreement to default and reinstate the original debt.
An approved Offer in Compromise can provide a true reset by eliminating a substantial portion of tax debt and stopping collection activity.
If you are struggling with overwhelming IRS debt, call (469) 626-7760 to schedule a confidential consultation with Margolies Law Office and determine whether an Offer in Compromise may be available to you.
“ Andrew Margolies did a great job for my mom who had paid her taxes, but the IRS failed to associate the payment with her account. She kept getting letters demanding payment with accrued interest and fees even though they had cashed her check.
After Andrew started working on it, the letters stopped. We were notified there had been a credit to my mom’s account, and finally the payment was properly applied with a zero balance. She is even receiving a refund.
We’re very happy with Andrew and would highly recommend him.”
“I came to Andrew Margolies with a significant IRS issue that I had been losing sleep over for months. I spoke with Jennifer on the phone, got in the same day for a consultation, and had a full resolution within 2 business days for a reasonable price. Andrew did exactly what he said he was going to do and provided me with a thorough resolution.
Being 9 months pregnant, Andrew was extremely sensitive to my timeline urgency and was on the phone with me at 5pm on a Friday helping me with my case.
Before meeting with Andrew, I called around to 10 different offices. All of those interactions felt like a sales funnel and a money grab. I can’t explain the relief I have having chosen to work with Andrew and having a resolution within days. We’re absolutely thrilled with the value and the experience.”
“100% recommended. I had a problem regarding my tax return since the beginning of 2023 and had been trying to follow up myself until 2025 with no progress. I decided to work with Attorney Andrew and Jennifer and in less than a month my problem was solved.
Attorney Andrew is very knowledgeable with reasonable fees and Jennifer is very responsive to all requests and questions. Most importantly they have business ethics. I will not look further if I have any more tax problems.”
