Offer in Compromise



An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. MKG Tax Consultants will consider your unique set of facts and circumstances:


  • Ability to pay;

  • Income;

  • Expenses; and

  • Asset equity


IRS generally approve an offer in compromise when the amount offered represents the most IRS can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone. If you hire MKG Tax Consultants professional to help you file an offer, be sure to check your eligibility.


Make sure you are eligible


Before the IRS can consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding. Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.


  • $186 application fee (non-refundable); and

  • Initial payment (non-refundable) for each Form 656.



Important information about payment option


Your initial payment will vary based on your offer and the payment option you choose:

  • Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.

  • Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.

If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package for details.


Understand the process


While your offer is being evaluated:


  • Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);

  • A Notice of Federal Tax Lien may be filed;

  • Other collection activities are suspended;

  • The legal assessment and collection period is extended;

  • Make all required payments associated with your offer;

  • You are not required to make payments on an existing installment agreement; and

  • Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.


(legal disclaimer) MKG Tax Consultants nor its associates make no warranties or gurantees that your (OIC) will be accepted by the IRS nor is the retainer fee paid to MKG Tax Consultants is a non-refundable fee for the consulting services provided. MKG Tax Consultants and its affiliates reserve the right to cancel any oral or written agreements or amend the terms and conditions of preparing a (OIC) on a tax payer behalf. Payment plans are avaliable on a case by case basis.


For more information contact MKG Tax Consultants (559) 412-7248 to schedule a appointment.

Click here to schedule a free consultation


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