Most people who ask us about an Offer in Compromise do not qualify for one. The IRS accepts roughly a third of the offers it receives, and the firms advertising “pennies on the dollar” rarely mention that. We will tell you in the first conversation whether you have a realistic case. That conversation is free. If you have one, we will build it. If you do not, we will tell you what will actually work instead — an installment agreement, currently-not-collectible status, or penalty abatement — rather than charging you for a filing that was never going to be accepted.
Frequently Asked Questions
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How long does it take?
Commonly eight to twelve months from submission to decision, longer if the IRS asks for additional documentation or the case goes to Appeals.
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Will the IRS keep collecting while my offer is pending?
Collection activity is generally suspended while an offer is under consideration. That is one of the practical reasons to file a properly prepared offer rather than nothing at all.
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What about what I owe California?
The Franchise Tax Board runs its own separate Offer in Compromise program with its own application and its own standards. An accepted federal offer does not settle a state balance, and the two are assessed independently.
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I have not filed in years. Can I still apply?
Not until those returns are filed — unfiled returns make you ineligible outright. That is fixable, and it is usually the first step. See Back Taxes & Late Filing.
How Our Offers in Compromise Process Works
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Case Evaluation
We look at your numbers and tell you whether an offer is realistic. This is the conversation that saves people the most money, and it costs nothing.
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Financial Analysis
If we proceed, we prepare a complete picture of your income, assets and expenses on the IRS's forms. This is the stage where cases are won or lost — valuations and expense allowances are where most of the disagreement happens.
Give us a half hour to discuss your financial needs and you'll see how Malkasian Accountancy's unique, personalized service can help you achieve your objectives.
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We Build and File the Offer
We prepare and submit Form 656 with the $205 application fee, plus your initial payment: 20% of the offer amount if you are paying a lump sum, or the first monthly installment if you are paying periodically. If your income falls below the IRS low-income threshold, both the fee and the initial payment may be waived.
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The Wait
Commonly six to twelve months. The IRS will usually come back with questions or requests for further documents, and we handle that correspondence. Collection activity is generally suspended while an offer is under consideration.
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The Decision
If it is accepted, you pay the agreed amount on the agreed terms. If it is rejected, see below — a rejection is not the end of it.
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Alternative Solutions
You have 30 days to appeal a rejection on Form 13711, and rejections do get reversed. If an offer truly won't work, there are other routes — an installment agreement, currently-not-collectible status, or penalty abatement. None forgive the debt outright, but each one stops things getting worse.
Ready to find out where you stand? Call us at (916) 971-9315 today for your consultation. Someone here picks up — usually in a ring or two — and Gary will tell you honestly whether you have a case.
Schedule a
Free Consultation
We'll talk about what you need and how Malkasian Accountancy can help, whether that's tax preparation, planning, or accounting services.
Our team is ready to assist you. We'll respond as quickly as possible during normal business hours, often the same day.
Client Testimonials
"My husband and I have been going to Jeffrey Malkasian for many years to have our taxes prepared and have been very satisfied with him and his office! I would highly recommend this office!"
Lori Bates
"I have used them for over 10 years. They are professional and personable. They listen and work with your best interests at heart. I recommend them for your taxes and financial advice "
Joe Gencur
"Highly recommend. They have been doing my taxes for 20+ years. Call them today. "
Andrea Meza
"Glen and Jeffrey are always available to answer any business or personal tax questions for the past five years. I'll be a client for life."
David Mead
"Very friendly, helpful, knowledgeable, professional get the job done quick and effectively. Very reasonable pricing."
Stan Thomas
"Yessica is our tax preparer and she does an amazing job. She is very welcoming and patient and answers all of our questions. She looks for every opportunity to save us money. The front desk and phone staff are always friendly and helpful as well. "
Curtis M.
"I’ve been working with my tax preparer Yessica for several years now, and I couldn’t be happier with the service. She is consistently professional, knowledgeable, and incredibly helpful. Every year, yessica makes the tax process smooth and stress-free, taking the time to explain everything clearly and ensuring my husband and I get the best possible outcome. "
Esmeralda Medina
"Great service, I've been a client for 20 plus years "