IRS Offer in Compromise Lawyers

Offer in Compromise: Settle Your Tax Debt for Less Than Owed

The IRS Offer in Compromise is an excellent way to settle taxes with the IRS. Our tax attorneys help you qualify, document, and negotiate so the balance you owe shrinks to a number you can actually pay. Contact us to learn how we can help.

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Meet the Team

Over 100 Years of Cumulative Tax Law Experience

Spencer Evans, attorney at Michelle Turpin, P.C.

Spencer Evans

Attorney

Spencer Evans brings nearly 20 years of exclusively practicing tax law. He started his career as a state tax attorney working for a state taxing agency and has significant experience working as a tax attorney for Big 4 accounting firms. His unique background provides invaluable insight into how both sides approach tax controversies.

Credentials and Expertise

  • Juris Doctor, Florida State University School of Law (2005)
  • Admitted to practice before Arizona, Utah, Federal District and U.S. Tax Courts
  • Former government tax attorney
  • 13+ years at PwC and Deloitte representing both small and large taxpayers in tax matters before state taxing agencies throughout the U.S.
  • Nationwide sales tax audit defense specialist
  • Expert in reverse sales tax audits and refund procurement
  • Multi-state tax controversy resolution
  • Federal and state tax appeals representation
Michelle Turpin, P.C.

Michelle Turpin

Attorney

With nearly 40 years of experience representing taxpayers before the IRS and state taxing authorities, Michelle Turpin is recognized as one of Utah's leading tax controversy attorneys. She has successfully handled thousands of complex tax cases, from routine audits to high-stakes criminal tax investigations.

Credentials and Expertise

  • Juris Doctor, University of Utah School of Law (1989)
  • LL.M. Masters in Taxation, University of San Diego (1990)
  • Former intern, IRS Office of District Counsel
  • Admitted to practice before Utah, Federal District Court and U.S. Tax Courts
  • Specializes in federal and state tax controversy, criminal tax defense, and complex tax planning

Learn More About Our Legal Team

In a Hurry? Read Our Key Points

Expert Utah Tax Attorneys Helping You Achieve a Fresh Start with an Offer in Compromise with the IRS

Facing overwhelming tax debt can feel insurmountable, leaving you stressed about your financial future and wondering if there is any way out. An Offer in Compromise is an agreement with the IRS that allows you to settle your tax debt for less than the full amount owed — providing the fresh start you need to move forward with your life.

Michelle Turpin, P.C. are Offer in Compromise specialists with over 100 years of cumulative experience exclusively practicing tax law. Our experienced tax attorneys understand the complexities of the Offer in Compromise process and have successfully helped thousands of taxpayers throughout the country resolve their tax problems permanently.

The possibility of resolving your tax debt for less than what you owe may seem too good to be true, but for qualified taxpayers, an Offer in Compromise can provide genuine relief from crushing tax debt. Our team of seasoned tax professionals knows how to navigate this complex process, maximize the potential for acceptance, and protect your rights throughout the negotiation process with the IRS.

The purpose of this comprehensive guide is to provide you with everything you need to know about the Offer in Compromise process and explain how Michelle Turpin, P.C. can help you achieve the best possible outcome for your unique tax situation.

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Salt Lake City
4764 South 900 East, Salt Lake City, UT 84117
St. George
162 N. 400 E St., Suite A-204, St. George, UT 84770

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Path to Resolution

Understanding the Offer in Compromise: Your Path to Tax Debt Resolution

An Offer in Compromise represents one of the most powerful tools available for resolving significant tax debt, but understanding the different types and qualification requirements is essential for success. The IRS accepts three distinct types of Offers in Compromise, each designed to address different taxpayer circumstances.

Doubt as to Collectibility

The most common type of OIC. This applies when you cannot pay your full tax liability within the time the IRS has to collect the debt. The IRS evaluates your current financial situation, including your income, expenses, and asset equity, to determine your ability to pay. If your reasonable collection potential is less than your total tax debt, you may qualify — often the best option for taxpayers facing bank levies, wage garnishments, or other aggressive collections.

Doubt as to Liability

Applies when there is genuine uncertainty about whether you actually owe the tax debt. This might occur when the IRS made errors in calculating your tax liability, when you have legitimate grounds to dispute the assessment, or when there are questions about the validity of the underlying tax debt. This type requires substantial documentation and legal arguments to support your position.

Effective Tax Administration

Available in rare cases where you can technically pay the full amount owed, but doing so would create economic hardship or be unfair considering your specific circumstances. The IRS considers advanced age, serious illness, or other compelling reasons why collection of the full amount would be inappropriate.

What the IRS Evaluates

Qualification Criteria

The IRS applies strict criteria when evaluating Offer in Compromise applications, and understanding these requirements is crucial for success.

Ability to Pay

The foundation of most OIC evaluations. The IRS examines your current monthly income minus allowable expenses to determine your disposable income, plus the equity in your real estate, vehicles, bank accounts, investments, and other valuable property. Dissipated assets in the "recent" past are also considered. The IRS uses this information to calculate your "reasonable collection potential" — the amount they believe they can collect from you over time.

Equity in Assets

Includes the fair market value of everything you own, minus any loans or encumbrances secured by those assets. The IRS requires detailed valuations of real estate, vehicles, business assets, and other valuable property. Understanding how to properly value and present these assets can significantly impact your offer amount.

Income Analysis

A thorough examination of your monthly income from all sources, including wages, self-employment income, rental income, investment income, and any other regular income streams. The IRS uses specific formulas and allowable expense standards to determine how much of your income is available for tax debt payment.

Allowable Expenses

Follow IRS standards that may be different from your actual expenses. The IRS has predetermined amounts for housing, transportation, food, clothing, and other necessities. Understanding these standards and how to document legitimate additional expenses is critical for presenting an accurate financial picture.

Step-by-Step

The Offer in Compromise Process

Each step builds on the last. Mismanage any one of them and the IRS may reject an otherwise valid offer. Our team prepares, submits, and shepherds every step.

  1. Step 01

    Initial Evaluation and Preparation

    A comprehensive analysis of your financial situation and tax debt — gathering all necessary financial documentation, calculating your reasonable collection potential, and determining the appropriate offer amount. Proper preparation at this stage is essential for success.

  2. Step 02

    Form Submission and Application Fee

    Completing complex IRS forms and providing extensive financial documentation. Form 656 (Offer in Compromise) and Form 433-A or 433-B must be completed accurately. The IRS also requires an application fee and an initial payment with your offer.

  3. Step 03

    IRS Review Process

    Can take six months to two years or longer. The IRS will verify the information you provided, may request additional documentation, and assign your case to an Offer Examiner. During this time, most collection activities are suspended, giving you breathing room. We also consider the timing impact on tax liens and on tolling the Collection Statute Expiration Date (CSED).

  4. Step 04

    Acceptance, Rejection, or Counteroffer

    If accepted, you must comply with the payment terms and future filing requirements. If rejected, you may have appeal rights. The IRS may also propose a counteroffer, which you can accept, reject, or negotiate further.

  5. Step 05

    Appeals Process if Rejected

    Provides an opportunity to present your case to the IRS Appeals Office. This independent review can often result in a more favorable outcome, especially when experienced representation advocates for your position and understands your appeal rights for denied offers.

  6. Step 06

    Avoiding Delay Findings

    The IRS may determine an OIC was submitted solely for delay purposes and deny it. Experienced tax professionals who have represented clients before the IRS for their entire careers minimize this risk. Repeated submissions dramatically increase that likelihood.

Acceptance Math

Success Rates and the Importance of Professional Representation

According to IRS data, only approximately 25% of submitted Offers in Compromise are accepted. However, this statistic includes many offers that are improperly prepared or submitted by taxpayers who do not actually qualify for the program.

Why Most Offers are Rejected

Common mistakes include offering too little money, failing to provide complete financial information, mathematical errors in calculating reasonable collection potential, and submitting offers when the taxpayer does not actually qualify. Many taxpayers and other tax professionals also underestimate the complexity of the required forms and documentation.

The Value of Experienced Representation

Tax attorneys specializing in Offers in Compromise achieve significantly higher acceptance rates. Experienced representatives understand how to properly value assets, calculate reasonable collection potential, present financial information favorably, and negotiate with IRS personnel effectively.

Required Forms and Documentation

Supporting documentation may include bank statements, asset valuations, income verification, expense documentation, tax returns, and various IRS forms. Taxpayers with unfiled tax returns must bring their filings current over the last 6 years before submitting an OIC. Competent tax attorneys file only the returns the IRS requires — not 15 years of returns where 6 would do.

Factors the IRS Considers

Your compliance history, demonstrated ability to pay, strength of your financial documentation, future income potential, and overall cooperation with the process. The IRS also evaluates whether alternative settlement options (such as Installment Agreements) might be more appropriate for taxpayers who can afford monthly payments and do not qualify for an OIC.

Why Experience Matters

Why an Experienced Attorney is Crucial for Your Offer in Compromise

Negotiating with the IRS through the Offer in Compromise process requires specialized knowledge of tax law, IRS procedures, and negotiation strategies that most taxpayers simply do not possess. The complexity of the application process, combined with the high stakes involved, makes professional representation not just helpful but essential for maximizing your chances of success.

Specialized Knowledge Requirements

Understanding IRS collection procedures, financial analysis techniques, asset valuation methods, and legal precedents that affect offer negotiations. Tax attorneys who specialize in OIC have spent years learning these complex procedures and stay current with changing IRS policies.

Understanding IRS Internal Procedures

Experienced representatives know how IRS Offer Examiners evaluate cases, what documentation they require, how they calculate reasonable collection potential, and what arguments are most persuasive in securing acceptance. This insider knowledge comes only from years of experience handling hundreds of cases.

Avoiding Common Pitfalls

A single mistake in financial disclosure, asset valuation, or calculation can result in rejection of an otherwise valid offer. We know when to submit an offer versus pursuing other resolution options.

Michelle Turpin, P.C.'s Unmatched Expertise

100+ Years of Cumulative Experience

Exclusively practicing tax law provides our clients with a depth of knowledge and experience that is simply unmatched in Utah or anywhere else in the country. Our team has handled virtually every type of tax controversy and has seen every possible variation of Offer in Compromise cases.

Enrolled Agent on the Team

Federally licensed tax practitioners who have demonstrated their knowledge of tax law and are authorized to represent taxpayers before the IRS in all matters.

Former IRS Experience

Our of-counsel attorney who previously worked for the IRS understands the thought processes, priorities, and decision-making criteria that IRS personnel use when reviewing offers. This experience is particularly valuable for complex cases involving business tax issues, payroll tax debt, and Trust Fund Recovery Penalties.

Deep Understanding of Tax Law

Our attorneys identify legal issues, procedural problems, and strategic opportunities that less experienced representatives might miss. This comprehensive knowledge base translates directly into better outcomes for our clients.

Personalized Service from Senior Attorneys

Direct Access to Experienced Attorneys

Your case receives attention from seasoned professionals rather than being handled by paralegals or junior staff. When you work with Michelle Turpin, P.C., you communicate directly with the attorneys managing your case.

Customized Strategy Development

Every Offer in Compromise case is unique. Our attorneys take the time to understand your specific financial situation, tax history, and personal circumstances to develop a strategy tailored to your needs.

Comprehensive Case Management

We handle all communication with the IRS on your behalf, ensure deadlines are met, respond to IRS requests promptly, and keep you informed about the progress of your case at every step.

Our Services

Michelle Turpin, P.C.'s Comprehensive Offer in Compromise Services

Our full-service approach to Offer in Compromise representation ensures that every aspect of your case receives expert attention, from initial evaluation through final resolution.

Service Area 01

Eligibility Evaluation and Offer Calculation

Comprehensive Financial Analysis

A detailed examination of your complete financial picture — income from all sources, monthly expenses, assets and liabilities, and future earning potential — to determine whether an Offer in Compromise is the best resolution option.

Accurate Asset Valuation

Expertise in determining the fair market value of real estate, vehicles, business assets, and other property for OIC purposes, which often differs from valuations for other purposes. Overvaluing assets can result in an offer amount that is too high, while undervaluing assets can lead to rejection.

Reasonable Collection Potential Calculation

Complex formulas that take into account your monthly disposable income multiplied by a specific number of months, plus the equity value of your assets. Our attorneys present your financial information in the most favorable light while maintaining complete accuracy.

Strategic Offer Amount Determination

Balancing multiple factors to arrive at an amount that is both acceptable to the IRS and manageable for you. The offer must be large enough to demonstrate good faith and meet IRS expectations, but not so large that it defeats the purpose of seeking debt reduction.

Service Area 02

Application Preparation and Submission

Meticulous Form Completion

Forms 656, 433-A, 433-B, and other required documents prepared with precision — errors or omissions can result in rejection or delays that may extend the process by months or years.

Comprehensive Documentation Assembly

Gathering and organizing all supporting documentation required by the IRS. Our attorneys know exactly what documentation is required and how to present it most effectively.

Strategic Presentation of Financial Information

Understanding how to highlight factors that support a lower reasonable collection potential while ensuring complete compliance with IRS disclosure requirements.

Professional Submission and Follow-Up

Submitting your complete application package to the appropriate IRS office, confirming receipt, tracking case progress, and responding promptly to any IRS requests for additional information.

Service Area 03

Direct IRS Negotiation and Communication

Experienced IRS Communication

Our attorneys handle all communication with IRS personnel, ensuring that your rights are protected and that all interactions support your objective of obtaining offer acceptance.

Professional Relationships with IRS Personnel

Developed over decades of practice, these relationships — built on mutual respect and competence — can facilitate more productive negotiations with Revenue Officers, Offer Examiners, and other IRS personnel.

Strategic Response to IRS Requests

Understanding what the IRS is really asking for and how to provide responsive information without volunteering unnecessary details that could hurt your case.

Negotiation of Terms and Conditions

When the IRS proposes a counteroffer or requests modifications to your original offer, our attorneys know how to negotiate terms you can actually live with.

Service Area 04

Comprehensive Appeals Management

Appeals Process Expertise

A critical second chance if your initial offer is rejected. The IRS Appeals Office operates independently from the compliance divisions and often takes a more practical approach to case resolution.

Independent Appeals Review

An opportunity to present additional evidence, clarify misunderstandings, and negotiate alternative resolutions. Appeals Officers have more flexibility than Offer Examiners.

Strategic Appeals Arguments

Knowing both the legal and practical aspects of your case to identify the strongest arguments and present them in a way that is most likely to result in acceptance.

Alternative Resolution Exploration

If an Offer in Compromise is not achievable, we explore Installment Agreements, Currently Not Collectible status, tax penalty abatement, or collection appeals.

Anticipating Roadblocks

Addressing Common Offer in Compromise Challenges

Even well-prepared Offers in Compromise face common challenges that can derail the process without experienced representation to address them proactively.

Overcoming Documentation and Valuation Issues

  • Asset Valuation Disputes — obtain professional appraisals, support valuation positions with comparable sales data, and negotiate valuation disputes with IRS personnel
  • Income Verification Challenges — document and explain income variations in a way that supports your offer amount
  • Expense Documentation Requirements — document legitimate expenses that exceed IRS standards and present them persuasively
  • Special Circumstances Documentation — economic hardship, health problems, advanced age, or other factors that support your offer

Managing IRS Communication and Requests

  • Responding to Information Requests — provide responsive information without volunteering details that could hurt your case
  • Handling Examination Interviews — prepare you thoroughly and represent you during any required interviews
  • Managing Timeline and Deadlines — meet strict IRS deadlines to avoid withdrawal of your offer
  • Addressing IRS Concerns and Objections — anticipate and proactively address common IRS concerns

Ensuring Post-Acceptance Compliance

  • Understanding Compliance Requirements — accept comes with ongoing obligations that must be met to avoid default
  • Filing Future Tax Returns Timely — required for five years following acceptance. We help you establish procedures for ongoing compliance
  • Making Required Payments — lump sum or periodic, all payment obligations must be met
  • Monitoring Compliance Status — five-year compliance period with ongoing guidance to maintain status

Why Choose Us

Why Choose Michelle Turpin, P.C. for Your Offer in Compromise?

When your financial future depends on successfully resolving overwhelming tax debt, choosing the right representation can make the difference between acceptance and rejection.

Unmatched Experience and Expertise

  • Over 100 years of cumulative experience exclusively practicing tax law
  • Former IRS experience to anticipate concerns and develop strategies
  • Full-service capability covering compliance, audit, and litigation
  • Complex case success across multi-year debt, substantial liabilities, and difficult circumstances
  • Personalized attention from senior attorneys, never delegated to paralegals

Strategic Advantages and Proven Results

  • Utah focus with nationwide federal tax capability
  • "We Fight the IRS to Achieve the Best Possible Outcome for You"
  • "Don't Deal with the IRS Alone" — aggressive, effective representation
  • Significantly higher acceptance rate than the national 25% average

Comprehensive Service and Support

  • Virtual consultation capabilities for clients throughout Utah and across the United States
  • Attorney-Client Privilege Protection for the highest levels of legal confidentiality
  • Transparent communication with regular updates and clear explanations
  • Adherence to the highest standards of legal and professional ethics

The Michelle Turpin, P.C. Difference

  • Boutique firm advantages with the resources to handle the most complex cases
  • Exclusive tax law focus to stay current with developments in tax law
  • Client-centered approach tailoring strategy to your unique circumstances
  • Long-term relationship building beyond resolving your immediate crisis

Further Reading

Official IRS Resources

For additional information about Offers in Compromise and related tax resolution options, we recommend reviewing these official IRS resources. However, given the complexity of tax law and the high stakes involved, we strongly recommend consulting with experienced tax attorneys before making any decisions about your tax debt resolution strategy.

Final Step

Take Action Today: Schedule Your Confidential Consultation

If you are struggling with overwhelming tax debt, waiting will only make your situation worse. The IRS continues to assess penalties and interest on unpaid balances, and collection actions can begin without warning. The sooner you take action, the more options you will have and the better your potential outcome.

Phone(801) 685-0552

Text(801) 685-0552

Emailinfo@taxlawsolutions.com

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Salt Lake City4764 South 900 East, Salt Lake City, UT 84117

St. George162 N. 400 E St., Suite A-204, St. George, UT 84770

Schedule a Free 15-Minute Consultation

Use our secure client portal or call now to engage representation.

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Why Immediate Action is Critical

  • Time-sensitive opportunities can disappear quickly given IRS collection deadlines.
  • Once represented, we can often halt aggressive collection actions.
  • Protecting assets from levy or seizure requires immediate intervention.
  • Peace of mind comes from experienced professionals working your case.

Disclaimers

Results vary by case. Every tax situation is unique, and past results do not guarantee future outcomes. The success of an Offer in Compromise depends on many factors, including the specific facts of your case, your financial situation, and your compliance with IRS requirements.

This content does not constitute tax advice.The information provided on this page is for general educational purposes only and should not be relied upon as tax advice for your specific situation. Tax law is complex and changes frequently, and the application of tax law to your specific circumstances requires professional analysis.

Consultation needed for specific guidance.Only through a confidential consultation can our attorneys provide advice tailored to your specific tax situation. We encourage you to schedule a consultation to discuss your circumstances and learn about your options for resolving tax debt.

Michelle Turpin P.C. assumes no liability for actions taken in reliance upon the information contained herein. Each person should consult their own tax attorney, business advisor, or tax advisor with respect to matters referenced in this content. Of course, we think it best you call us for all of your tax related legal issues.