Offer in Compromise Fort Lauderdale

The program exists for a narrow purpose: resolving cases where collecting the full debt would create a genuine hardship or would simply never happen. It is not a discount program, and it is not an option for everyone who owes the IRS. The IRS evaluates each offer against your complete financial picture — what you own, what you earn, and what it could realistically collect from you over time.

Roughly one in three offers is accepted by the IRS, and many cases that start as a potential Offer in Compromise end up resolving another way, such as an installment agreement or currently-not-collectible status. An honest review of your finances before you apply is the single most important step.

At PDJ Tax Experts, we start every resolution case with a free case review so you know which path actually fits your situation before any paperwork is filed.

The IRS uses a formula called reasonable collection potential, or RCP:

RCP = equity in your assets + your future income over a set period of months.

If that number comes out lower than what you owe, an offer can be considered. If it comes out higher, the IRS expects you to pay in full — typically through full payment or a payment plan — and the offer will be rejected.

Before the IRS will even review your offer, you must be in filing compliance:

• All required tax returns must be filed, including any past-due returns.
• You must be current on required estimated tax payments (or have enough tax withheld from your pay).
• You cannot be in an open bankruptcy proceeding.

Many people believe they qualify when they don't — and many who could qualify never apply because the financial disclosure feels overwhelming. A free case review with PDJ Tax Experts will tell you where you stand before you commit to the process.

The timeline breaks down into stages: preparing and submitting the application, the IRS confirming your filing compliance, a financial analysis period where the examiner may request additional documentation, and finally the decision. Delays almost always come from incomplete disclosures or follow-up document requests.

While your offer is under review, IRS collection activity is generally paused. That breathing room matters — but it is another reason to make sure the application is done right the first time. During your free case review, we can give you a realistic timeline based on your specific situation.

The $205 application fee is paid to the IRS when you submit your offer, unless your income falls below the IRS low-income threshold. There is also an initial payment with your offer — either a lump-sum payment of 20% of the offer amount or the first of your proposed periodic payments. These amounts are applied to your tax debt if the offer is not accepted.

Professional preparation fees depend entirely on the complexity of your finances — how many income sources, assets, and liabilities must be documented. PDJ Tax Experts does not quote a fee before we have reviewed your case, because a number given blind would tell you nothing. The free case review is where that quote is made.

Each of these causes is avoidable with careful preparation:

• Incomplete financial disclosure. Every bank account, asset, and income source must be documented. Gaps read as concealment.
• Missing or inaccurate Forms 433-A / 433-B / 656. These forms carry the entire weight of your case — one transposed figure can sink it.
• Offer below reasonable collection potential. If the math shows the IRS can collect more than you offered, the offer is rejected.
• Non-compliance. Unfiled returns or missed estimated payments will stop an offer before review even begins.
• Missed deadlines during review. The IRS sets response deadlines for document requests; missing one closes the case.

The common thread: most rejections come from process errors, not from the underlying facts of the case. That is why we review everything — your returns, your finances, and the forms — before anything is submitted.