If you’re facing more tax debt than you can afford to pay, you may feel trapped — unsure how to move forward or how to deal with the constant letters from the IRS. The good news is that there’s a potential solution designed for people in exactly that situation: the IRS Offer in Compromise (OIC).
With the right professional guidance, you may be able to settle your tax debt for less than you owe — legally and permanently. At Duffy Tax Resolution, Kevin G. Duffy, CPA/CFF, CFP® brings over 35 years of experience helping clients across New Jersey and New York navigate complex IRS programs and regain their financial footing.
What Is an Offer in Compromise?
An Offer in Compromise is a program offered by the IRS that allows qualified taxpayers to pay a reduced amount of their total tax debt. In other words, if you can prove that paying your full balance would create a financial hardship, the IRS may agree to settle for less.
It’s not an easy program to qualify for — the IRS reviews every case carefully. That’s why having an experienced CPA who specializes in tax resolution is essential. Kevin Duffy has successfully represented individuals, families, and small business owners through this process, ensuring every financial detail is presented accurately and persuasively.
Who Qualifies for an Offer in Compromise?
The IRS considers several factors before approving an Offer in Compromise:
- Ability to pay: Your income, expenses, and asset equity are analyzed in detail.
- Future earning potential: The IRS evaluates your employment status and projected income.
- Expenses and financial hardship: Legitimate expenses are weighed to determine what you can realistically afford.
- Compliance: You must be current on all tax filings and not in active bankruptcy.
A CPA like Kevin Duffy will help you prepare a strong case that clearly demonstrates your inability to pay the full amount, while meeting every IRS requirement.
The Offer in Compromise Process, Step by Step
1. Detailed Financial Analysis
Before submitting an offer, Kevin conducts a comprehensive review of your income, assets, and expenses. This determines whether you’re likely to qualify — and what offer amount makes sense.
2. Proper IRS Documentation
The IRS requires Form 656 (Offer in Compromise) and Form 433-A (Collection Information Statement). Any mistake or missing information can delay or jeopardize your case. Kevin ensures every form and attachment is accurate and complete.
3. Strategic Offer Submission
Submitting an offer that’s too low can result in immediate rejection, while offering too much defeats the purpose. Using his experience in IRS negotiations, Kevin calculates an amount that balances fairness with the strongest chance of approval.
4. IRS Review and Negotiation
The IRS review process can take several months. During that time, Kevin communicates directly with IRS agents, responds to any questions, and advocates for your best outcome — so you don’t have to face it alone.
5. Resolution and Next Steps
If approved, you’ll pay the agreed amount in a lump sum or through short-term installments. Once complete, the IRS forgives the remaining balance, giving you a fresh financial start.
Why Work with Duffy Tax Resolution
The Offer in Compromise process involves extensive documentation, deep financial analysis, and careful strategy — all areas where Kevin Duffy’s credentials give clients a clear advantage.
As a Certified Public Accountant (CPA), Certified in Financial Forensics (CFF), and Certified Financial Planner (CFP®), Kevin understands both the technical side of tax law and the practical realities of personal finance. His approach blends precision, negotiation skill, and empathy — helping clients achieve lasting relief.
Duffy Tax Resolution serves clients across Ocean, Monmouth, Middlesex, Mercer, Somerset, and Atlantic Counties, as well as major metro areas like Newark, Jersey City, Hoboken, and New York City.
The Benefits of an Offer in Compromise
- Settle for less: You may pay only a fraction of your total debt.
- Stop collection actions: Liens, levies, and wage garnishments can be suspended during review.
- Regain peace of mind: End the cycle of IRS letters and phone calls.
- Start fresh: Once accepted, the remaining debt is legally forgiven.
Take the First Step Toward a Fresh Start
If you’re overwhelmed by tax debt, you don’t have to face it alone. The Offer in Compromise could be your path to real, lasting relief — and Duffy Tax Resolution can help you get there.
Contact Kevin G. Duffy, CPA/CFF, CFP®, for a confidential consultation today.
Duffy Tax Resolution
📍 526 Bay Ave., 2nd Floor, Point Pleasant, NJ 08742
📞 (732) 785-4611
🌐 duffytaxresolution.com
Proudly serving clients in New Jersey and New York, including Ocean, Monmouth, Middlesex, Mercer, Somerset, Atlantic, Newark, Jersey City, and Hoboken.
