You’ve heard the commercials: “Settle your tax debt for pennies on the dollar!”

Sounds incredible — but for most taxpayers, that’s not how it works. The IRS Offer in Compromise (OIC) program can indeed provide life-changing relief, but it’s also one of the most misunderstood programs out there.

At Hockett Tax Resolution, we’ve helped countless taxpayers determine whether they truly qualify and successfully guide them through the process when they do. Before you jump in, here’s what you really need to know.

Myth #1: Anyone Can Settle for Pennies on the Dollar

Reality: Only a small percentage of taxpayers actually qualify.

The IRS only approves offers when you can prove that paying your full balance would create a serious financial hardship, not just an inconvenience. They evaluate your income, necessary living expenses, assets, and future earning potential.

If your financial analysis shows that you could pay through an installment plan, the IRS will almost always reject your offer. That’s why it’s critical to have a tax resolution professional perform a full financial review before you apply.

Myth #2: The IRS Will Cut You a Deal If You Just Ask Nicely

Reality: An Offer in Compromise isn’t a favor — it’s a formula.

Submitting an OIC involves detailed financial disclosures, strict documentation, and a calculated offer amount based on IRS formulas. The IRS examines every dollar you earn and every asset you own. One small error or missing document can cause your offer to be returned or rejected.

Working with experienced professionals like Hockett Tax Resolution ensures your offer is complete, accurate, and strategically prepared to give you the best chance of success.

Myth #3: If My Offer Is Denied, I’m Out of Options

Reality: A rejection doesn’t mean the end of the road.

Many OICs are denied for technical reasons — missing paperwork, calculation errors, or incomplete financial data. In many cases, we can appeal the decision or reapply when your circumstances change.

And if you don’t qualify for an OIC, you may still be eligible for Currently Not Collectible (CNC) status or a Partial Payment Installment Agreement (PPIA) — both of which can provide significant relief.

How Hockett Tax Resolution Can Help

• Conduct a complete IRS transcript and financial analysis to determine eligibility.

• Prepare a professional, data-backed offer that meets IRS standards.

• Handle all communication, negotiation, and appeals with the IRS.

• Explore every available tax relief option — not just the OIC — to find your best path forward.

We don’t sell false hope — we deliver real, achievable solutions.

Get the Facts Before You File

The Offer in Compromise can be one of the IRS’s most effective relief programs — when it’s done right. Don’t risk your one shot by going in unprepared.

If you’re ready to see whether you qualify, contact Hockett Tax Resolution today for a free consultation. You’ll get honest answers, clear guidance, and a strategy built around your situation — no hype, just results.

Take the First Step Towards Resolution

Dealing with an IRS issue can feel overwhelming, but you don’t have to face it alone. Hockett Tax Resolution is here to guide you through every step of the process, providing expert advice and support.