Offer in Compromise Fees
Offer in Compromise Attorney Fees
- Owe more to the IRS than you can realistically pay and want to know what an OIC attorney costs?
- Seen ads promising to ‘settle for pennies on the dollar’ and want the honest picture?
- Want to understand whether an OIC is the right tool before paying anyone anything?
What OIC Attorney Fees Actually Cover
An Offer in Compromise is not a flat-fee product you can buy and submit. It is a legal filing that requires a detailed financial analysis, accurate calculation of your Reasonable Collection Potential under IRC §7122, and preparation of a Form 656 package that will withstand IRS scrutiny.
The fee for OIC preparation at Brotman Law typically runs $4,000–$12,000 flat depending on the complexity of your financial picture. What that covers:
- RCP analysis — calculating the IRS’s minimum acceptable offer amount
- Collection Statute Expiration Date (CSED) analysis — determining how much time the IRS has to collect
- Form 433-A (OIC) preparation — the financial disclosure the IRS uses to evaluate your offer
- Form 656 preparation — the formal offer document
- Response to IRS information requests during the review period
- Negotiation with the assigned OIC examiner
We also do something that many firms skip: we tell you before we start whether an OIC is likely to be accepted. If your RCP exceeds your tax liability, we won’t recommend an OIC — we’ll recommend the resolution path that actually fits your situation.
Fee Reference
OIC and Related Resolution Fee Ranges
| Matter Type | Scope | Typical Fee Range |
|---|---|---|
| OIC pre-screening (RCP analysis only) | Is an OIC viable for your situation? | $1,500–$2,500 |
| OIC — simple financial picture | W-2 income, limited assets | $4,000–$6,000 |
| OIC — complex financial picture | Business owner, multiple entities, real estate | $7,000–$12,000 |
| OIC — doubt as to liability | Challenge the underlying tax assessment | $5,000–$15,000 |
| OIC rejection appeal to Appeals | 30-day appeal after IRS rejection | $3,000–$8,000 |
| OIC + concurrent audit defense | OIC while audit is pending | Combined: $10,000–$25,000 |
Ranges reflect Brotman Law’s typical fee structure. Your actual fee will be confirmed in writing before we begin.
What Affects OIC Preparation Cost?
OIC preparation costs are driven by the complexity of your financial disclosure — not by the size of your tax liability.
-
Number of Income Sources and Entities
A salaried employee with a simple balance sheet is less complex than a business owner with an S corporation, a rental property, and an investment account. -
Asset Complexity
Real estate valuations, minority business interests, retirement accounts, and foreign assets require more analysis to characterize and document accurately for the IRS. -
Whether the Collection Statute Is at Issue
If the CSED is approaching, the IRS’s collection window is closing—which affects the viable offer amount and the overall strategy. -
Whether the Underlying Tax Liability Is Disputed
Doubt-as-to-liability OICs require a separate analysis of the legal basis for the assessment and are more involved than financial hardship OICs. -
Current Compliance Status
The IRS requires current compliance before accepting an OIC. If you have unfiled returns, those must be filed first, which adds to the total engagement cost.
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Our Flat-Fee Approach to OIC
We don’t charge contingency fees. Here’s why that matters, and how our flat fee structure works.
Flat Fee
- You know the full cost before we start
- No incentive for us to recommend an OIC if installment agreement or penalty abatement is a better fit
- Fee covers full preparation, submission, and IRS response — not just document preparation
- If the IRS rejects and you want to appeal, that is a separate engagement with a separate flat fee
Hourly / Other
- Complex multi-entity financial disclosures requiring outside valuations
- OIC combined with active Tax Court proceedings
- Cases where the IRS requests multiple rounds of additional information beyond the standard review process
Frequently Asked Questions
Offer in Compromise Attorney Fees
How much do OIC attorneys charge?
Offer in Compromise attorney fees typically range from $4,000 to $12,000 for full preparation, financial disclosure analysis, and submission. The variation reflects the complexity of your financial picture — a single-entity taxpayer with straightforward assets is less complex than a business owner with multiple entities, real estate, and retirement accounts.
Do tax attorneys charge contingency fees for OIC?
Some firms charge a contingency fee — typically 10–15% of the amount ‘saved’ by the OIC. At Brotman Law, we do not. Our fee is for the legal work: analyzing your Reasonable Collection Potential, preparing the Form 656 package, and representing you in negotiations with the IRS. We do not take a percentage of your tax savings.
What is a Reasonable Collection Potential (RCP) analysis?
The IRS uses a formula called Reasonable Collection Potential to determine the minimum acceptable OIC amount. RCP is based on your equity in assets plus your future income over 12 or 24 months (depending on payment type). An experienced attorney calculates your RCP before recommending an OIC — if your RCP exceeds your tax liability, an OIC likely will not be accepted.
What is the IRS acceptance rate for Offers in Compromise?
The IRS accepts roughly 30–40% of OIC submissions in a given year. Acceptance rates vary by year and taxpayer type. Submissions prepared by experienced tax attorneys have substantially higher acceptance rates than self-prepared submissions, primarily because of accurate RCP analysis and proper financial disclosure preparation.
What happens if the IRS rejects my OIC?
If the IRS rejects an OIC, you can appeal the rejection to the IRS Independent Office of Appeals within 30 days. If Appeals also rejects it, you can proceed to Tax Court for a CDP hearing in certain circumstances. In many rejection cases, the IRS will suggest an acceptable revised amount — which an experienced attorney can negotiate.
Related Practice Areas
Explore Our Tax Defense Services
IRS Audit Defense
Field exams, correspondence audits, and eggshell audits with criminal exposure. Flat-fee representation from initial notice through resolution.
- Learn about audit defense
Tax Debt Resolution
Installment agreements, Offers in Compromise, penalty abatement, and Currently Not Collectible status. We analyze your options before recommending a path.
- Explore resolution options
Criminal Tax Defense
Federal tax evasion, fraud charges, IRS Criminal Investigation matters, and grand jury proceedings. Early engagement is critical.
- Learn about criminal tax defense
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