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Offer in Compromise

What is an Offer in Compromise?

Free Workshop: IRS Offer in Compromise for Contractors

πŸŽ“ Free Workshop: IRS Offer in Compromise for Self-Performing Contractors

This free course walks contractors through the full process of applying for an IRS Offer in Compromise (OIC) β€” from eligibility and calculation to submission and success.

βœ… 1. What is an Offer in Compromise?

  • Definition: A way to settle your tax debt for less than the full amount owed.
  • Why contractors with variable income often qualify.
  • Common myths and facts about OICs.

🧾 2. Who Qualifies?

  • Filed all required tax returns
  • Made estimated payments
  • No open bankruptcies

πŸ“„ 3. Types of Offers in Compromise

  • Doubt as to Collectibility
  • Doubt as to Liability
  • Effective Tax Administration (for hardship cases)

πŸ’‘ 4. How the IRS Calculates Your Offer

IRS Formula: Reasonable Collection Potential (RCP) = Asset equity + Disposable income (12–24 months)
  • What contractors should count as income and expenses
  • How to legally reduce your offer through documentation

πŸ“‘ 5. Forms You’ll Need

  • Form 433-A (OIC) for individuals and sole props
  • Form 656 to make the actual offer
  • Business income reports, equipment lists, bank records

πŸ“¬ 6. The IRS Review Process

  • What happens after you submit
  • Why some offers are rejected and what to do next

⚠️ 7. Pitfalls for Contractors

  • Cash jobs and unreported income
  • Overstated equipment values
  • Missed deadlines or missing returns

πŸ”Ž 8. Real Case Scenario & Class Activity

  • Review a mock contractor’s Form 433-A
  • Group discussion: how to adjust the offer

🎯 9. Workshop Wrap-Up & Homework

  • Download the IRS forms at IRS.gov
  • Make a list of your business assets and income
  • Estimate your Reasonable Collection Potential
Learn more or enroll in full courses at Intern Academy.