If you owe more to the IRS than you can realistically pay, an Offer in Compromise may be one way to resolve the debt.

The program allows eligible taxpayers to settle federal tax debt for less than the full amount owed. However, the IRS does not approve every application. It reviews your income, necessary expenses, assets, equity and overall ability to pay before making a decision. 

If you are searching for an Offer in Compromise lawyer in Omaha, you may be wondering whether professional representation is necessary.

You can apply on your own. Hiring a lawyer is not an IRS requirement. Professional help may become useful when you owe substantial tax debt, have complicated finances, face collection action or have already had an offer rejected.

Quick Answer

An Offer in Compromise, often called an OIC, is an IRS program that may allow a qualifying taxpayer to settle tax debt for an agreed amount below the full balance.

You do not need a lawyer simply to file an OIC.

However, an attorney or another qualified tax professional can help determine whether an OIC makes sense before you disclose detailed financial information and submit an offer.

This can be particularly useful if you own a business, have significant assets, receive income from several sources, face an IRS levy or wage garnishment, or disagree with how the IRS has evaluated your finances.

What Is an IRS Offer in Compromise?

An Offer in Compromise is an agreement between a taxpayer and the IRS to resolve eligible tax debt for less than the full amount owed.

For many applicants, the important figure is the IRS's Reasonable Collection Potential, commonly called RCP.

RCP generally considers the value the IRS believes it can collect from assets such as real estate, vehicles and bank accounts, together with expected future income after certain allowable living expenses. 

This is why there is no fixed percentage that applies to every taxpayer.

Two Omaha taxpayers could owe the same amount and still have very different OIC outcomes because their income, assets, expenses and financial circumstances are different.

The IRS recognises three grounds for compromise: doubt as to collectibility, doubt as to liability and effective tax administration. For taxpayers who agree that they owe the debt but cannot realistically pay it in full, doubt as to collectibility is often the most relevant category. 

When Should You Consider an Offer in Compromise Lawyer in Omaha?

A straightforward OIC may not require legal representation. Some cases, however, deserve a closer review before anything is filed.

If your tax situation is already complicated, speaking with someone who handles tax resolution in Omaha can help you compare the available options.

You owe a substantial amount to the IRS

The amount you owe does not by itself determine whether the IRS will accept an offer.

Your finances matter.

As the debt becomes larger, it becomes more important to understand how the IRS may calculate your available income, asset equity and collection potential before deciding what amount to offer.

Your financial situation is complicated

An OIC application can require detailed disclosure of your financial position.

Business ownership, self-employment, rental income, property equity, investments, multiple bank accounts and other assets can affect the IRS calculation.

An attorney or qualified tax professional can review these issues before the application reaches the IRS.

You are facing IRS collection action

An Offer in Compromise should not be treated as a general-purpose way to stop an urgent IRS problem.

If the IRS has already frozen funds in your bank account, you may need immediate IRS tax levy release help while you work on a longer-term resolution.

If the IRS is taking money from your paycheck, a wage garnishment release strategy may need attention first.

The IRS generally cannot issue a new levy while a processable OIC is pending, during the 30 days following a rejection or while a timely appeal is being considered. However, submitting an OIC does not automatically require the IRS to release a levy that was already in place before the offer was filed.

Your previous Offer in Compromise was rejected

A rejection does not always end the matter.

The IRS gives taxpayers 30 days from the date of the rejection letter to request an appeal. 

Before appealing, review why the IRS rejected the offer. The disagreement could involve income, allowable expenses, asset values or the amount the IRS believes it can collect.

Professional representation can be especially useful when you need to challenge those calculations with supporting evidence.

You are unsure whether an OIC is the right solution

An Offer in Compromise is only one IRS tax resolution option.

Before applying, compare it with payment plans, hardship status, penalty relief and other available solutions.

911 Tax Relief provides broader IRS tax relief services for taxpayers who need help identifying which resolution may fit their financial circumstances.

Can You File an Offer in Compromise Without a Lawyer?

Yes.

The IRS allows taxpayers to apply without hiring an attorney.

Individual taxpayers may use their IRS Individual Online Account to check eligibility, prepare the necessary forms, calculate a potential offer amount, make required payments and submit an offer electronically. 

For many offers based on doubt as to collectibility or effective tax administration, the application involves Form 656 and Form 433-A (OIC) for individuals. Businesses may also need Form 433-B (OIC). 

The real question is whether you should file before someone reviews the numbers.

Financial disclosures need to be accurate and supported. Applying for an OIC when another resolution is more suitable may add unnecessary time and expense to your case.

What Can an Offer in Compromise Lawyer Do for You?

An Offer in Compromise lawyer can start by reviewing the tax periods involved, the total balance and your current IRS collection status.

The next step is usually a financial analysis.

Your representative can examine income, allowable expenses, bank balances, property, vehicles, business interests and other assets that may affect the IRS's calculation.

This review can help determine whether an OIC appears realistic before you make an offer.

A qualified representative can also help prepare the financial forms and supporting documents, respond to IRS requests for additional information and handle disputes that arise during the review process.

Attorneys, CPAs and enrolled agents have unlimited representation rights before the IRS. They can represent taxpayers in collection matters and appeals when properly authorised. 

For an Omaha taxpayer facing several IRS issues at once, professional tax resolution services may also help determine whether the OIC should form part of a broader resolution strategy.

How Much Will the IRS Accept in an Offer in Compromise?

There is no standard OIC settlement percentage.

The IRS looks at the taxpayer's individual financial circumstances and Reasonable Collection Potential.

That calculation generally includes realisable asset value and anticipated future income after certain basic living expenses. 

For example, a taxpayer with little disposable income and limited equity may have a very different collection potential from someone who earns the same amount but owns substantial property or investments.

This is why an advertisement promising a particular percentage reduction cannot tell you what the IRS will accept in your case.

The IRS also cautions taxpayers to check their eligibility rather than relying on companies that make unrealistic Offer in Compromise promises. 

What Are the Basic Offer in Compromise Requirements?

Before submitting an offer, make sure you meet the basic IRS requirements.

You generally need to have filed all required federal tax returns, made required estimated tax payments and received a bill for at least one tax liability included in the offer.

A taxpayer in an open bankruptcy proceeding is not eligible for an OIC.

Business owners with employees must also be current with applicable federal tax deposit requirements. 

Under the current April 2026 Form 656-B, the standard application fee is $205, together with the required initial offer payment. Qualifying taxpayers who meet the Low-Income Certification guidelines may be exempt from these payment requirements. 

Because IRS forms and procedures can change, taxpayers should use the current Form 656-B instructions when preparing an application.

What If You Do Not Qualify for an Offer in Compromise?

Failing to qualify for an OIC does not mean you have to pay the entire IRS balance immediately.

A different resolution may be more suitable.

An IRS Installment Agreement allows qualifying taxpayers to pay tax debt through monthly payments rather than paying the full balance at once.

If paying the IRS would leave you unable to cover necessary living expenses, Currently Not Collectible status may temporarily pause active IRS collection while the financial hardship continues. Interest and penalties may continue to accrue while the account remains in CNC status.

Some taxpayers may also qualify for IRS penalty abatement based on an applicable administrative waiver, reasonable cause or another form of penalty relief.

The right choice depends on your debt, income, assets, filing compliance and current collection status.

Get Help With an Offer in Compromise in Omaha, Nebraska

If you are considering an Offer in Compromise, start with your financial numbers.

911 Tax Relief works with Omaha taxpayers dealing with IRS tax debt, Offer in Compromise applications, installment agreements, levies, wage garnishments, penalty issues and other collection matters.

You can learn more about local representation through the 911 Tax Relief Omaha office.

911 Tax Relief Omaha Office
12020 Shamrock Plaza #200
Omaha, NE 68154

Phone: 1-877-791-1829

Before choosing an OIC, the team can review your tax debt, financial circumstances and collection status to determine which available resolution should be considered.

No tax professional can guarantee that the IRS will accept an Offer in Compromise. The goal should be to understand your options and submit a resolution based on accurate financial information.

Call 911 Tax Relief at 1-877-791-1829 for a case review and to discuss your IRS tax debt.

This article provides general information about federal tax resolution. It does not provide individual legal or tax advice. Eligibility and outcomes depend on the facts of each taxpayer's case.

Frequently Asked Questions

Do I need a lawyer to submit an Offer in Compromise?

No. The IRS does not require taxpayers to hire a lawyer to apply for an Offer in Compromise.

You can prepare and submit an OIC yourself. Professional representation may be worth considering when you have substantial tax debt, complicated finances, business liabilities, active IRS enforcement or a previous OIC rejection.

How long does an IRS Offer in Compromise take?

There is no single processing time for every case. The review can take several months depending on the complexity of your finances, the information the IRS needs and whether additional documents are requested.

The IRS also has a two-year rule under which an offer is generally considered accepted if it does not make a determination within two years of receiving the offer. Appeal periods do not count toward that period. 

Can the IRS reject my Offer in Compromise?

Yes. Submitting an application does not guarantee approval.

The IRS may reject an offer if it believes the amount does not reasonably reflect what it can collect or if the financial information does not support the proposed settlement.

If the IRS formally rejects your OIC, you generally have 30 days from the date of the rejection letter to request an appeal.

Does an Offer in Compromise stop IRS collections?

A processable OIC generally prevents the IRS from issuing a levy while the offer is pending. The restriction normally continues for 30 days after a rejection and during a timely appeal. Exceptions can apply.

An OIC does not automatically release a levy that the IRS served before you submitted the offer.

What happens if my Offer in Compromise is denied?

Start by reviewing the reason for the rejection.

If you disagree, you generally have 30 days from the date on the rejection letter to appeal.

If an appeal is not appropriate, you can consider another resolution such as an Installment Agreement, Currently Not Collectible status or another IRS collection alternative.

Can an Omaha tax attorney negotiate with the IRS for me?

Yes. Attorneys have unlimited representation rights before the IRS. CPAs and enrolled agents also have unlimited representation rights.

With proper authorisation, these professionals can represent taxpayers in IRS collection matters, payment disputes and appeals.