Offer in Compromise Workflow for Tax Resolution Firms

Start with eligibility, compliance and transcripts

Before preparing an offer, confirm filing compliance, estimated-tax requirements where applicable, current balances and the assessment history for each module. Pull current account transcripts and verify whether prior bankruptcies, appeals or offers changed the collection statute.

• Confirm all required returns are filed
• Verify current-year payment compliance
• Review account transcripts and CSED-sensitive events

Build the financial picture before choosing the offer amount

The financial analysis should reconcile income, expenses, assets, equity and allowable standards. The goal is not merely completing Form 433-A(OIC); it is building a defensible reasonable collection potential calculation that matches the supporting documents.

• Bank statements and pay evidence
• Asset values and loan balances
• Monthly living expenses and allowable-standard adjustments

Treat submission as the beginning of the case, not the end

After the package is submitted, track the offer payment method, application fee, processability notices, examiner assignment, information document requests and response deadlines. Every phone call and document request should become part of the case record.

• Submission date and delivery proof
• Examiner contact and deadlines
• Additional-document requests and responses

Plan for acceptance, rejection and appeal paths

If the IRS accepts the offer, track the payment terms and future compliance period. If it rejects the offer, preserve the rejection date and appeal deadline immediately so the case does not depend on memory or email search.

Frequently asked questions