Settling Your Tax Bill for Less: Myths vs. Reality

Author: Jim Buttonow

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

There are almost 22 million taxpayers (individual and business) who owe the IRS back taxes. In 2022, only 13,167 taxpayers received an IRS settlement – that is, an IRS offer in compromise. An OIC allows taxpayers to settle their tax bill for less than the amount owed. Why do so few get an OIC? In this course, find out how the IRS’ offer in compromise program works and understand if your financially distressed client qualifies for an OIC. If they qualify, find out how much it will cost to settle their tax bill. We will cover the OIC rules and walk through a real-life example of how the OIC works from qualification, to application, through the OIC investigation, and to the final end. We will also get insights as to why many taxpayers do not qualify – and other IRS options that may be more suited to their circumstances.

Publication Date: October 2023

Designed For
All tax professionals who need to resolve unpaid taxes issues for their clients and want to consider the IRS offer in compromise program.

Topics Covered

• The IRS offer in compromise basic concepts
• OIC trends, and who generally qualifies and does not qualify for an OIC
• The qualification and the offer amount calculations
• The OIC financial analysis used in the qualification and offer amount formulas
• The OIC application and investigation process
• Possible better IRS collection alternatives to the OIC

Learning Objectives

• Describe the IRS offer in compromise program and how it works
• Identify whether a client qualifies for an offer in compromise
• Recognize how to calculate the amount they need to settle their tax bill
• Identify the potential issues that will disqualify a client from an OIC
• Identify other IRS collection alternatives that may better fit your client's circumstances

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None