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Delinquent Taxpayers: Offers in Compromise and Installment Agreements, Obtaining the Best Arrangement

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, October 7, 2021

Recorded event now available

or call 1-800-926-7926

This course will explain the payment alternatives offered by the IRS that are available to taxpayers to help resolve IRS debt. Our panel of debt resolution experts will cover applying for installment agreements and offers in compromise (OICs) and discuss which taxpayers are the best candidates to establish the most beneficial payment arrangement for a taxpayer.


Completing a return with the lowest legitimate tax liability is often just half the battle. Taxpayers often walk away with significant balances due to taxing agencies including the IRS and the New York State Department of Taxation and Finance. Helping individuals manage their tax liabilities to prevent potential liens, levies and revocations of your passport has become an integral piece of many tax practices.

There are both short-term (120 days or less) and long-term installment arrangements. Defaulting on either can have severe consequences. Understanding what payment amounts and payment terms the relevant taxing agency will accept beforehand is key. Taxpayers often need to modify an existing agreement to lower payment amounts or include an additional year.

Tax agencies also allow taxpayers to settle their tax liabilities for less than the tax, penalty and interest owed using the offer in compromise (“OIC”) program. An OIC is detailed in a booklet provided by the IRS, Form 656. It explains steps for completing both Forms 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, and Form 433-B, Collection Information Statement for Businesses. Certain taxpayers will need to complete both.

Both installment plans and OICs require setup fees. OIC application fees may be waived for eligible taxpayers. Both have online options to assist applicants. The OIC has an online pre-qualifier, and certain installment agreements can be set up online. Tax practitioners must grasp the nuances of these applications and the likelihood of acceptance when working with taxpayers who have outstanding IRS debt.

Listen as our panel of tax experts provides insights into payment arrangements with the Internal Revenue Service and New York State, including tips for having the most favorable arrangement accepted.



  1. Owing tax liabilities to the IRS and New York State
  2. Installment agreements
    1. Short-term payment plans
    2. Long-term payment plans
    3. Amending an existing plan
  3. Offers in compromise
    1. Online pre-qualifier
    2. Individuals
    3. Preparing financial forms
    4. Handling denied offers
  4. Unusual circumstances and common errors to avoid
  5. Best practices


The panel will cover these and other critical issues:

  • Using "special circumstances" to lower an offer
  • How to amend a current installment agreement
  • When an OIC should be filed using alternative Form 656-L based on doubt as to liability
  • What assets are required to be included on Form 433-A
  • Avoiding common errors that lead to denial of an OIC


Bourell, Christopher
Christopher L. Bourell

Attorney and Clinic Director at Toledo Tax Controversy Clinic, The University of Toledo College of Law
Toledo Tax Controversy Clinic, The University of Toledo College of Law

Mr. Bourell is a practicing attorney and the director of the Toledo Tax Controversy Clinic. His practice concentrates...  |  Read More

Tenenbaum, Karen
Karen J. Tenenbaum

Tenenbaum Law

An attorney for 35 years, Ms. Tenenbaum founded Tenenbaum Law, P.C., providing legal counsel to individuals and...  |  Read More

Ahroni, Scott
Scott Ahroni

Robinson Brog Leinwand Greene Genovese & Gluck

Mr. Ahroni is a partner in Robinson Brog’s Tax Department. His practice focuses on Federal and New York...  |  Read More

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