Offer In Compromise

Do you have problems with your taxes that have resulted in receiving IRS notices? Do the penalties and interest assessed on your unpaid back taxes amount to more than you are able to financially pay the government? An Offer in Compromise may be right for you.


An "Offer in Compromise" is done when a client owes the IRS more money than they feel they can comfortably pay. Entering into an "OIC" is a timely and detailed process.

Before entering into an OIC, the client must be current with all tax filings. If a client has past years’ tax returns that need to be filed, those must be completed and filed with the IRS before OIC proceedings can begin.

Ultimately, Lynda Mohs will determine if an OIC is a good fit for a client. The client will have to bring in several statements to validate their inability to pay the full amount requested by the IRS. The OIC checklist can be found on our website under the “tax services” tab located in the upper left hand corner of the home page. The cost of an OIC is $1,200.00.

1) Schedule a preliminary appointment with Lynda, generally one hour, so she can consult with the client to determine if they're a good candidate for an OIC. The client’s initial consultation costs $250. At that time, Lynda will interview the client and give them the 18-point check list showing the items they need to gather.

2) The next appointment will be when the client comes in with all of the requested statements from the 18-point checklist. They do not need to meet with Lynda at this stage. The second appointment will be to copy the client's information. Anyone in the office who can operate a copy machine is capable of handling this appointment. Plan for an hour-long appointment. It is an option for the client to make another payment toward the $1,200.00 at this time, but is not necessary.

3) The third appointment is again with Lynda. This appointment should be 3 hours in length. Lynda will look over the requested papers and ask further questions of the client. She will prepare the OIC forms for the client so they can mail them certified to the IRS. Any remaining balance due to Mohs should be paid at this time.

The IRS will notify Mohs Tax Service that the OIC was received. This generally takes about 6 weeks. The IRS will put collections on hold pending the Offer in Compromise. Lynda will then negotiate back and forth with the IRS on the client’s behalf to obtain the best deal possible for the client’s circumstances. This process can take 3 to 6 months.

Once the OIC has been accepted by the IRS, Lynda and the client will determine a payment plan that works best for the client. As part of the OIC, the client must make all monthly payments and file all tax returns in a timely fashion, or the offer will be void and the client will be removed from the compromise.

Initial Consultation: $250.00
OIC Package: $1,200.00 (through either acceptance or rejection) Appeals: case by case

Your end of the deal is to file and pay for all the time the offer is pending and paid; and for 5 years going forward you MUST file and pay on time.

For your OIC Appointment, please gather all:
Proof of all income, expenses, everything owned and everything owed out.

  1. Years to include in offer, type of tax and amount owed
  2. Names, ages, birthdates and social security numbers of all members of your household
  3. Copies of last tax return(s) filed
  4. 6 months of bank statements for all bank accounts (personal, business, checking, savings)
  5. 3-4 months current pay stubs from all jobs
  6. Proof of rent
  7. Proof of house payment-statement from mortgage company stating payoff date and monthly payment amount, all signed by mortgage company
  8. Property tax statements for current year
  9. 3-4 months utility bills
  10. Title cards for vehicles, number of miles on them, pictures of any damages, statement from insurance company stating insurance costs, statement for loans showing how much the payoff is, payoff date, monthly payments
  11. Any boats, trailers, motorcycles, etc.
  12. Life insurance: policy number, name of company, face amount, leffer from insurance company stating loan value
  13. Health insurance and medical costs (need written proof)
  14. Bonds, stocks, etc. (need proof of value)
  15. Court ordered child support, spousal maintenance ("alimony"), judgments, court papers and proof of amount being paid
  16. Bankruptcy papers, if filed
  17. Proof of daycare expenses
  18. Proof of any other income or expenses


Basically, we are proving to the IRS everything you own, everything you owe, all money coming in monthly, and all money going out monthly.