I am a former IRS agent and teaching instructor.
When I was employed at the Internal Revenue Service I was a revenue officer who both accepted and denied the offer in compromise.
I was proficient at my job and became a teaching instructor of the offer instructing those what to look for and what not to look for to accept or deny offers in compromise.
The offer program had an auspicious start in 1930 when the government decided to accept Joe Lewis’s offer in compromise.
How did the Offer in Compromise program at the IRS come into being?
Legend has it, the Offer in compromise program started with the heavy weight champ boxer Joe Louis, who, like most boxers, won lots of prize money in spurts, and who became dramatically delinquent on his back taxes back in the 1930’s
In sympathy to Mr. Louis (one of the most popular figures of his day), the IRS decided to come up with a plan for him to settle his taxes.
First know OIC, round one, to Joe Lewis
It was in the early 70’s when the Offer in Compromise program was officially made a part of law. Then, the bi-partisan Tax Reform of 1986 also gave the OIC program some final structure.
The marketing program as settle your case for pennies on the dollar came to light and the offer in compromise become an every day word.
While IRS accepts OIC, I want to share with you the current 2019 statistics about offers in compromise.
Keep in mind the statistics fluctuate through the years. In the years 15 and 16 and 17 fewer offers were accepted in the average settlement rate was about $7000 per case.
The new data shows the latest figures on the acceptance of offers in compromise.
Data recently on the Offer in Compromise acceptance rate for 2019.
The OIC 2019 acceptance rate decreased by 7.5% when compared to 2018.
The dollar amount for all accepted OICs increased by 10.75% or about $28.1 million.
That represents an average of $16,ooo. per offer in compromise accepted. Remember, this is just an average and has nothing to do with your case.
The number of offers submitted decreased by 4,900 or 8.25 when compared to 2018. Hard to believe why the decrease.
The Acceptance Rate Decreased by 7.5% for tax year 2018
The 2019 IRS Offer in Compromise acceptance rate dropped to 33% for 2019 from 40% in 2018.
This represented a decrease in the OIC acceptance rate of 7.5 %.
Please keep in mind these are just national statistics and averages they have absolutely nothing to do with your case whether IRS is going to accept or deny your offer in compromise.
We suggest that every taxpayer walk through the IRS prequalified tool or talk to somebody proficient in the offer in compromise program.
These numbers through the years are going to go up and down depending on income, assets, and expenses. IRS has set benchmarks as far as what the national standards will be on the expenses that they will accept.
Before giving your money to anybody make sure you are a qualified candidate for the offer in compromise program. All these statistics are available on the IRS data site. There’s a wealth of information on the sites and you can pull all this information up yourself.
