Offer In Compromise Resolution Approval Rate: Is It Worth Applying In 2022?

An offer in compromise (OIC) is one of the main programs offered under the IRS Fresh Start Program. When our clients find out that this is the best tax resolution program to get accepted into, more often than not, their first question is what the offer in compromise resolution approval rate is. 

Though we’ll get to that information in a minute, an OIC is more than its approval rate. Many different factors go into qualifying and being approved for the OIC program.

What Is An Offer In Compromise?

An OIC is widely regarded as the best tax relief program the IRS offers. Unlike other Fresh Start Programs, the offer in compromise allows you to settle your debt once and for all. However, it’s also the program with the strictest qualifications.
 
An OIC is an agreement between the taxpayer and IRS that allows the taxpayer to resolve their tax debt for less than the full amount they owe. The taxpayer’s reasonable collection potential (RCP) is determined, and based on this information, the IRS calculates how much the taxpayer can reasonably pay. 

You must meet several criteria to apply.

How To Qualify For An Offer In Compromise?

Though the OIC program has strict qualifications, fortunately, it’s very straightforward.

Here’s what you must have:

  • Prove your inability to pay (prove income, expenses, and asset equity)
  • File all missing or incomplete tax returns
  • Made all required estimated tax payments for the current year
  • Your reasonable collection potential (RCP) must be less than the amount the taxpayer offered to settle for
Working with a tax resolution company will give you the best odds to qualify for an offer in compromise. 

Remember that when putting together all of your documents, the more evidence you give the IRS of your difficult financial situation and inability to pay, the more likely you’ll be accepted.

What Is The Offer In Compromise Resolution Rate?

So, should you still apply for an offer in compromise?

In 2021 a total of 45,285 OICs were submitted to the IRS. A total of 15,154 OICs were approved, which translates to a little over a 33% offer in compromise resolution approval rate. In other words, every third OIC gets approved.

This is a complicated process to take on by yourself, and having a professional tax relief company on your side will increase your chances of approval. 

Why Work With TaxRise?

With the fierce competition for OIC approval, this whole situation can add unnecessary stress. After all, if only one in three OIC resolutions are approved, why take the chance of your offer being rejected by the IRS?

TaxRise specializes in getting settlement offers approved by the IRS. In fact, 98.6% of our clients get placed in an IRS resolution, which explains why we’re the fastest growing tax relief company in the nation!

The Takeaway

Check out TaxRise’s free tax consultation to find out where you stand financially. From this quick call, you’ll be able to determine if you qualify for our services and which tax relief program will work the best for your unique situation.

TaxRise has helped thousands of taxpayers just like you resolve their tax issues and erase their tax liability. Now it’s your turn.
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