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Self-Study Courses

Utilizing the IRS Offer in Compromise Program for your Financially Distressed Client

2 CPE Credits $41.00/credit hour
★ ★ ★ ★ ★ 5.0 (1 rating)

This course provides tax professionals with a practical, step by step roadmap for evaluating, preparing, and submitting an IRS Offer in Compromise (OIC) for financially distressed clients. With more than 26 million taxpayers owing back taxes each year and only a small percentage receiving settlements, practitioners must understand how to assess eligibility, calculate reasonable collection potential, and successfully navigate the OIC process.

In this course, you will explore IRS collection trends, qualification criteria, and the internal rules used to determine whether an offer will be accepted. Through a real world case example, you will see the full lifecycle of an OIC—from pre qualification to application review, investigation, and resolution. Participants will also learn why many taxpayers fail to qualify and how to evaluate other viable IRS collection alternatives to better match the client’s circumstances.

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2029 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

Publication Date: June 2026

Designed For
This course is ideal for tax professionals who assist clients facing IRS collection actions or seeking tax‑debt relief solutions.

Topics Covered

  • IRS collection environment and taxpayer debt trends
  • Overview of IRS collection rules and alternatives to full payment
  • Determining ability to pay and calculating reasonable collection potential
  • How the IRS Offer in Compromise program works
  • Step‑by‑step review of the OIC process with a case example
  • Practical considerations, documentation requirements, and practitioner tips

Learning Objectives

  • Identify IRS collection trends and how the offer in compromise program fits within the overall IRS collection framework
  • Explain how the OIC program works, including qualification requirements and IRS evaluation criteria
  • Determine whether a financially distressed client meets eligibility requirements for an OIC
  • Calculate a client’s reasonable collection potential (RCP) to estimate a settlement amount
  • Recognize circumstances that will disqualify a client from OIC consideration
  • Evaluate alternative IRS collection options when an OIC is not the best solution

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

Instructor

Jim Buttonow

Jim Buttonow, CPA, CITP, has been a leader in helping taxpayers and tax professionals resolve tax problems with the IRS.
For 19 years, Jim worked at the IRS in various compliance enforcement positions. Since 2006, Jim has been in private practice and tax and accounting software development. Jim consulting practice focuses on the areas of tax controversy and tax administration. Jim led product development and marketing for a successful software company that developed tax problem software for tax professionals and has developed and implemented post-filing tax services to large tax providers, such as H&R Block and Jackson Hewitt. This software is currently being used by tens of thousands of tax professionals and businesses in the United States.

Jim has been an IRS partner in improving IRS operations and post-filing service to taxpayers. Jim served as chairperson of the IRS Electronic Tax Administration Advisory Committee (ETAAC) in 2015 and 2016 during which ETAAC played a central role in promoting the IRS digital strategy to develop transformative technology solutions to systemic challenges in tax administration. Jim also served as the North Carolina representative on the IRS’ Taxpayer Advocacy Panel (TAP) from 2020-2022.
Jim regularly speaks on areas of tax administration and problem solving to national associations and has testified before Congress in areas of tax administration. He has also published many articles in industry publications. In his articles, Jim focuses on delivering practical insights, advocating for IRS transparency and efficiency, and proposing innovative large-scale solutions for taxpayers and tax professionals.

Jim currently authors the Tax Problems and Solutions Handbook, a publication aimed at helping tax pros work more effectively in post-filing matters and resolving their clients’ most common tax problems. The book can be found online at TaxProblemsHandbook.com. Jim can be reached at Jim@buttonowcpa.com or at his website at buttonowcpa.com.
$82.00 / 2 CPE
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