Offer in Compromise Attorney in New Jersey and New York

An Offer in Compromise allows a taxpayer to settle an IRS tax debt for less than the full amount owed when paying the full balance would create economic hardship or when there is doubt about whether the full amount is actually owed. It is a legitimate IRS program with specific eligibility criteria, detailed financial disclosure requirements, and a structured review process. It is not a loophole and it is not available to everyone. But for taxpayers who qualify, it can resolve significant IRS debt for a fraction of the total balance. Thai Nguyen Law handles Offer in Compromise submissions for clients in New Jersey, New York, and nationwide.

How an Offer in Compromise Works and Who Qualifies

The IRS accepts an Offer in Compromise under three bases: doubt as to collectibility, doubt as to liability, and effective tax administration. The vast majority of OICs are submitted under doubt as to collectibility, which applies when the taxpayer cannot pay the full tax debt within the remaining collection statute period given their current financial circumstances. The IRS evaluates the offer against the taxpayer’s Reasonable Collection Potential, or RCP, which is the IRS’s calculation of the maximum it could realistically collect through all available means. An offer must equal or exceed the RCP to be accepted. The IRS will not accept an offer it believes is lower than what it could collect through enforced collection.

The RCP calculation has two components: net equity in assets and future income. Asset equity is calculated based on the quick sale value of the taxpayer’s assets, minus certain exempt amounts and secured liabilities. Future income is calculated by multiplying the taxpayer’s monthly disposable income, after allowable living expenses, by either 12 months for a lump sum offer or 24 months for a periodic payment offer. Allowable living expenses are determined by IRS National and Local Standards, which set standardized amounts for housing, transportation, food, clothing, and other necessities. Accurate financial disclosure and careful analysis of allowable expenses are essential because every dollar of monthly disposable income translates directly into the minimum offer amount.

Before the IRS considers an OIC, the taxpayer must be in full compliance: all required returns filed, estimated payments current, and federal tax deposits current for employers. The OIC is not available to taxpayers in bankruptcy. The application fee is $205, waived for qualifying low-income taxpayers. During review, collection is generally suspended and the CSED is tolled for the review period plus 30 days.

Doubt as to Liability: When the Tax Itself Is Disputed

Doubt as to liability OICs apply when the taxpayer believes the IRS made an error in assessing the tax, when new facts have emerged, or when the legal basis for the assessment is questionable. This basis does not require financial disclosure forms and is evaluated solely on the merits of the legal and factual dispute. It is a powerful tool for taxpayers with a substantive disagreement with the IRS’s assessment whose appeal rights have expired or who lacked representation during the original examination. Attorney Nguyen evaluates this basis in every case where the underlying assessment is questionable.

How Thai Nguyen Law Handles Offer in Compromise Cases

A successful OIC requires precise financial analysis, accurate completion of the Form 433-A OIC financial disclosure, a well-crafted offer letter that explains the taxpayer’s circumstances, and strategic decisions about the offer amount, payment terms, and timing. We analyze the client’s full financial picture, calculate the RCP using IRS standards, identify opportunities to minimize the calculated offer amount, and prepare the complete OIC package. We also manage the review process, respond to IRS requests for additional information, and handle rejected offers through the appeals process.

Our approach to Offer in Compromise cases includes:

Pulling the client’s IRS account transcripts and calculating the CSED to assess how OIC review will affect the collection window
Performing a detailed RCP analysis using IRS National and Local Standards to determine the minimum viable offer amount
Preparing accurate Form 433-A OIC financial disclosures that reflect allowable expenses and minimize calculated disposable income
Drafting the offer narrative explaining the taxpayer’s circumstances and the basis for the offered amount
Managing the IRS review process, responding to requests for additional information, and tracking compliance during review
Pursuing rejected offers through the IRS Independent Office of Appeals when the underlying analysis supports the offered amount

What Happens After an OIC Is Accepted

An accepted OIC requires full tax compliance for five years: all returns filed on time and all taxes paid as they come due. Any refunds for prior tax years are kept by the IRS as part of the settlement. The federal tax lien is released once the offer is paid in full. Defaulting by failing to stay in compliance reinstates the original liability minus amounts paid. Maintaining compliance for five years is as important as getting the offer accepted. Attorney Nguyen advises on post-acceptance obligations and monitors compliance throughout.

What to Expect Working With Us

01 – Free Consultation — We review your financial situation and IRS balance at no cost and give you an honest assessment of whether an OIC is viable for your situation.
02 – RCP Analysis and Offer Calculation — We perform a complete RCP analysis to determine the minimum offer amount and identify every legitimate way to minimize that calculation.
03 – OIC Package Preparation and Submission — We prepare and submit the complete OIC package, including the financial disclosure, offer letter, and all supporting documentation.
04 – Review Management and Appeals — We manage the review process, respond to IRS requests, and appeal rejected offers when the analysis supports the offered amount.

Why Choose Thai Nguyen Law?

As a refugee from Vietnam now attorney in the United States, Attorney Nguyen built a practice for people carrying burdens that feel impossible to put down. Significant IRS debt is one of those burdens. The Offer in Compromise program exists because the IRS recognizes that collecting more than a taxpayer can realistically pay serves no one. Attorney Nguyen identifies when that threshold is crossed and builds the strongest possible case for the lowest viable offer amount.

Thai Nguyen’s journey from immigrant to attorney in the United States — from refugee to immigrant to practicing lawyer — established a practice where tax resolution clients receive the same dedication as personal injury clients. Thai Nguyen Law serves New Jersey and New York and handles IRS matters nationwide, with services in English, Vietnamese, and Spanish.

Free consultation — Understand your options before taking any action
Attorney representation — Direct IRS communication handled by a licensed attorney
Multilingual service — English, Vietnamese, and Spanish
Nationwide tax representation — IRS matters handled for clients across the country

Frequently Asked Questions

The basic eligibility test is whether your Reasonable Collection Potential is less than your total IRS debt. If the IRS calculates that it could collect more from you through levies, liens, and forced collection than the offer amount, the OIC will be rejected. The IRS provides a pre-qualifier tool on its website that gives a rough indication, but the tool does not account for all the nuances of the financial analysis. A professional RCP analysis is the only reliable way to assess whether an OIC is viable and what the minimum offer amount should be. Attorney Nguyen performs that analysis before recommending whether to proceed with an OIC submission.

The IRS typically takes six months to two years to process an OIC from submission to final determination, depending on the complexity of the case and IRS workload. During this period, collection is suspended and the CSED is tolled. If the OIC is rejected, the taxpayer has 30 days to appeal to IRS Appeals, which adds additional time to the process. The extended timeline means that submitting an OIC is a significant commitment that requires maintaining compliance throughout the review period. A case not managed properly during the review period can result in rejection for reasons unrelated to the original financial analysis. Attorney Nguyen monitors every active OIC case through to resolution.

A rejected OIC can be appealed to the IRS Independent Office of Appeals within 30 days of the rejection letter. The Appeals officer independently reviews the offer and the IRS examiner’s basis for rejection. If the financial analysis supports the offered amount and the rejection was based on incorrect application of IRS standards, the appeal has a meaningful chance of success. If the rejection reflects a genuine shortfall in the offered amount, an amended offer at a higher amount may be appropriate. Rejection also does not eliminate other resolution options. An installment agreement, Currently Not Collectible status, or a partial pay installment agreement may still produce a favorable outcome. Attorney Nguyen evaluates all options after a rejection.

An accepted OIC does not directly appear on your credit report, but the federal tax lien that was filed on your account will remain until the offer amount is paid in full, at which point the lien is released. An OIC is publicly disclosed in the IRS’s online database of accepted offers, which is searchable by name. The most important future obligation is the five-year compliance requirement. Filing late, paying late, or failing to make estimated tax payments during the five-year period defaults the offer and reinstates the original liability. The accepted offer amount is not refundable if you default. Attorney Nguyen explains all post-acceptance obligations clearly before the offer is submitted.

Think You May Qualify for an Offer in Compromise? Call Thai Nguyen Law.

An Offer in Compromise can be one of the most powerful tax resolution tools available, but only when prepared and submitted correctly. If you carry significant IRS debt and want to know whether an OIC is viable for your situation, contact Thai Nguyen Law for a free consultation. Attorney Nguyen handles OIC submissions for clients in New Jersey, New York, and nationwide.

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