Offer in Compromise Help in Orange County: What the IRS Won’t Tell You
Why Work With a Local Orange County CPA?
Introduction
If you're facing overwhelming IRS tax debt and living in Orange County, CA, you've likely heard of the Offer in Compromise (OIC) program. It’s advertised as a way to “settle for pennies on the dollar.” But the truth? The process is complex, competitive, and often misunderstood.
The IRS won’t tell you everything—but we will.
At Boulanger CPA and Consulting PC, we help taxpayers across Anaheim, Orange, Garden Grove, and all of Orange County navigate the Offer in Compromise process successfully. In this post, we’ll reveal insider insights, strategic approaches, and critical mistakes to avoid when applying. If you’re looking for IRS tax relief near you, you’re in the right place.
What Is an Offer in Compromise (OIC)?
An Offer in Compromise is a legal agreement with the IRS to settle your tax debt for less than the full amount you owe. It's available only to taxpayers who can demonstrate that they:
- Can’t afford to pay the full debt,
- Or doing so would create financial hardship,
- And have filed all required returns and are in compliance.
The IRS accepts Offers in Compromise only when it believes it’s unlikely to collect the full amount through normal channels (like garnishments or levies).
Related: how to qualify for an Offer in Compromise
🎥 Watch: ARE YOU A VIABLE Offer CANDIDATE (Orange County Guide)
If you're overwhelmed by IRS tax debt and wondering whether an Offer in Compromise is the right solution, this short video breaks down exactly how the process works—specifically for taxpayers in Orange County, CA. I’ll walk you through what the IRS looks for, common mistakes to avoid, and how we help clients in Anaheim, Orange, and Garden Grove settle for less than they owe.
💡 Whether you’re just getting started or already received a rejection, this video will give you the clarity you need to move forward with confidence.
What the IRS Doesn’t Tell You About the Offer in Compromise Program
While the IRS publishes general guidelines, there are key realities they don’t promote:
1. Most Offers Are Rejected
The IRS rejects over 60% of all submitted Offers in Compromise.
Most are denied due to:
- Incomplete or inaccurate financial disclosures
- Unrealistic settlement offers
- Non-compliance (missing returns or late filings)
We’ve helped many Orange County taxpayers get rejected offers reversed or resubmitted correctly—and accepted.
2. The IRS Has a Formula—Not Sympathy
The IRS calculates your Reasonable Collection Potential (RCP)—what they think they can collect from you over time.
This includes:
- Income
- Assets (home equity, vehicles, retirement accounts)
- Living expenses (based on IRS “allowable standards” — not actual California costs)
Orange County’s high cost of living doesn’t automatically increase your chances unless properly documented.
3. Your First Offer May Not Be Your Best Offer
A skilled tax professional can strategically time your submission, structure your financials, and make your case far more compelling than a DIY approach.
How to Qualify for an Offer in Compromise in Orange County
To qualify for an OIC, you must:
- Have filed all required tax returns
- Be current on estimated payments (if self-employed)
- Be current on payroll taxes (if a business owner)
- Demonstrate an inability to pay full tax debt within IRS timelines
Additional considerations:
- If you’re in bankruptcy, you’re not eligible.
- You can’t submit an OIC while under audit.
Our team will help you get into compliance quickly so you can submit a strong offer.
The Three Types of OICs
- Doubt as to Collectibility: Most common. You can’t pay full debt based on income, assets, and expenses.
- Doubt as to Liability: You believe the tax amount is wrong. This often involves complex disputes.
- Effective Tax Administration: You technically can pay, but doing so would cause undue hardship. Rare, but powerful in the right case.
The Offer in Compromise Process (Step-by-Step)
Step 1: Initial Consultation
We review your IRS balances, tax transcripts, income, expenses, and assets.
Step 2: Financial Analysis
We calculate your Reasonable Collection Potential to determine your best offer amount.
Step 3: Compliance Check
We ensure all tax returns are filed and estimated payments are current.
Step 4: Package Preparation
We complete Form 656 and 433-A (OIC) or 433-B (business), and gather supporting documents.
Step 5: Submission and Payment
- Pay $205 application fee (unless you qualify for low-income waiver)
- Choose lump-sum or periodic payment plan
Step 6: IRS Review
Takes 6–12 months. The IRS may:
- Accept your offer
- Reject it with explanation
- Request more documentation
Step 7: Acceptance or Appeal
If rejected, we can appeal within 30 days.
Orange County clients benefit from our local representation, ongoing IRS communication, and ability to address issues quickly.
Common Mistakes That Can Destroy Your Offer
- Submitting incomplete or inaccurate financials
- Overstating income or assets
- Failing to document expenses properly
- Using national IRS standards instead of Orange County’s actual cost of living
- Working with out-of-state tax resolution mills that don’t understand California law
We’ve taken over many of failed OIC cases from national firms and corrected them for approval.
Real Orange County Success Story
“We owed $86,000 and had no idea how we were going to pay it. Boulanger CPA walked us through the Offer in Compromise process step-by-step. They negotiated a $6,200 settlement that changed our lives.” — Jonathan & Melissa R., Garden Grove
Why Work with a Local Orange County CPA for Your Offer in Compromise?
Most tax resolution companies are national call centers. We are a licensed CPA firm based right here in Orange County. That makes a big difference:
- Face-to-face meetings available in Anaheim, Orange, and Garden Grove
- Understanding of California tax rules + federal
- Deep knowledge of local cost-of-living adjustments
- Faster turnaround and more accurate documentation
When you search for “Offer in Compromise help near me,” you want someone who knows your area—not a salesperson across the country. We primarily meet with clients virtually via Zoom for convenience, but in-person appointments at our Orange County office are available by request.
What Happens After an Offer in Compromise Is Accepted?
If your offer is accepted:
- You must meet all future tax obligations for 5 years
- File and pay taxes on time
- Avoid new tax debt
Failure to comply could even mean defaulting on an IRS installment agreement, which can reinstate your original debt.
We offer post-OIC planning to ensure you stay compliant and avoid falling back into debt.
Offer in Compromise Alternatives
If you don’t qualify for an OIC, other options may still help:
- Partial Payment Installment Agreement
- Currently Not Collectible status
- Penalty abatement
- Innocent Spouse Relief
- Bankruptcy (in rare cases)
California taxpayers may also consider the California FTB Offer in Compromise program, which works similarly at the state level.
And if your tax issue is connected to older debt, it may involve understanding the IRS 10-year statute of limitations on collections.
📊 Want to Estimate Your IRS Settlement?
Use our free Offer in Compromise Calculator to get a realistic estimate based on IRS financial standards.
Try the Calculator NowCall for a Free Offer in Compromise Evaluation Today
If you’re buried in tax debt and searching for real Offer in Compromise help in Orange County, don’t wait for the IRS to garnish your wages or levy your bank account.
📍 Serving Anaheim, Orange, Garden Grove, and surrounding areas
📞 Call Now: 657-218-5700
🌐 Schedule a Free Consultation
We’ll assess your case, calculate your offer, and handle every detail—start to finish.
To dig deeper into strategies and protections, be sure to explore more in Defend What’s Yours—a resource designed to help you understand your rights against IRS collection tactics.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Always consult a licensed tax professional regarding your situation.
Frequently Asked Questions
What is an Offer in Compromise (OIC)?
An Offer in Compromise is an IRS program that lets eligible taxpayers settle their tax debt for less than the full amount owed if they meet strict financial criteria.
Who qualifies for an Offer in Compromise?
Eligibility depends on your income, expenses, asset equity, and ability to pay. The IRS only accepts OICs if they believe it’s the most they can reasonably collect.
How much will the IRS accept in an OIC?
The IRS calculates an acceptable offer based on your “reasonable collection potential,” which includes disposable income and realizable asset value.
Does filing an OIC stop IRS collections?
Yes. While your OIC is pending, the IRS halts most collection actions, including levies and garnishments, until a decision is made.
What happens if my OIC is rejected?
You can appeal a rejected offer within 30 days. Many taxpayers succeed on appeal if additional documentation or clarification strengthens their case.
How long does the OIC process take?
The IRS review process often takes 6 to 12 months, depending on case complexity and backlog. During this time, compliance with filings is mandatory.
Can California state tax debt be settled with an OIC?
Yes. The California Franchise Tax Board (FTB) has its own Offer in Compromise program for taxpayers who qualify, though eligibility rules differ from the IRS.
Should I hire a CPA for OIC help?
Yes. Professional representation improves your chances of approval, ensures accurate financial disclosures, and protects you from costly mistakes.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.
He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
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