How the IRS Calculates an Offer in Compromise and Ways to Strengthen Your Application

How the IRS Calculates an Offer in Compromise and Ways to Strengthen Your Application

10/15/2025

An Offer in Compromise (OIC) allows certain taxpayers to settle an outstanding tax debt for less than the full amount owed. The IRS accepts an offer only when it determines it is unlikely to collect the full balance before the statute of limitations runs out or when collection would create an undue hardship. Understanding the formula the IRS uses is essential before submitting an application. Read More

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IRS Fresh Start Program: How to Qualify and Maximize Your Benefits

Tax liabilities that go unpaid quickly grow through interest and penalties. To help taxpayers who fell behind, the IRS introduced the Fresh Start Initiative in 2011 and later expanded it. The program aims to make repayment and compliance more attainable while reducing the need for aggressive collection actions. Read More

Taxes aren’t just about compliance—they’re about strategy. Proactive planning and sound business advisory services can create significant advantages. At Pivot Tax, we help individuals and business owners reduce liabilities, improve cash flow, and make smarter financial decisions. Read More

When disputes with the IRS escalate, taxpayers may face U.S. Tax Court or sudden enforcement actions like a bank levy. These situations can be intimidating and disruptive, especially without professional guidance. At Pivot Tax, we provide skilled Tax Court representation and bank levy assistance to ensure your rights and assets are protected. Read More

For many taxpayers, receiving notice of a tax lien or levy is one of the most stressful parts of dealing with the IRS. These actions can disrupt your life in an instant—damaging your credit, freezing your accounts, or even taking property. When penalties pile on top, the situation can feel hopeless. At Pivot Tax, we help protect you from harsh IRS actions and pursue penalty relief. Read More

Falling behind on taxes can feel like a nightmare you can’t wake up from. Every time you check the mailbox, there’s another letter from the IRS. Every time the phone rings, you worry it’s about your taxes. For many individuals and small businesses, back taxes and debt settlements are a serious source of stress—but you don’t have to face it alone. At Pivot Tax, we specialize in guiding clients through the process of resolving back taxes, negotiating settlements, and regaining financial peace of mind. Read More