Settle Tax Debt for Less Than You Owe
Costello Tax Resolution helps individuals and business owners in Ohio determine whether they qualify for a compromise on their tax debt.
Smart Settlement
Clear Qualification
Control Over the Outcome
Get Help With an Offer in Compromise
You Don't Have To Deal With The IRS By Yourself
An Offer in Compromise is a formal IRS settlement program. It allows qualified taxpayers — individuals and businesses — to settle tax debt for less than the full amount owed, when their financial situation supports it.
When you hire a professional on an Offer in Compromise, you can expect:
- A detailed review of your financial position
- An assessment of whether you are likely to qualify
- Clear guidance on required compliance and documentation
- Careful preparation of required financial disclosures
- Direct communication with the IRS on your behalf
This is not a form you submit and hope for the best. National firms submit poorly prepared offers every day, and the IRS rejects them. Before anything is filed, you need a clear-eyed look at your finances including what you own, what you earn, and what the IRS is likely to collect. The goal is to pay the least amount possible, not to lose time and money on an offer that never had a chance.
Things Escalate When the IRS Assigns a Revenue Officer
If your tax case has already been assigned to a Revenue Officer, the situation changes.
Instead of automated notices, you are now dealing with a real person whose job is to collect. Deadlines become more direct. Requests for financial information become more detailed. Enforcement action may already be in motion.
When a Revenue Officer is assigned, the IRS may:
- Require full financial disclosure on short timelines
- Freeze or levy business or personal bank accounts
- Move forward with liens or other enforcement steps
- Look more closely at whether owners could be held personally responsible
An Offer in Compromise is still possible at this stage, but it must be handled carefully. Once enforcement pressure increases, timing and strategy matter even more.
Wait too long and those options disappear.
15 Years Inside the IRS.
Now Working for You.
15 Years Inside the IRS. Now Working for You.
I understand how scary it is when you receive a letter from the IRS — or worse, they show up on your doorstep.
I’m Justin Costello. I spent 15 years as an IRS Revenue Officer, so I know the inner workings of the IRS and exactly how enforcement decisions are made. Since starting Costello Tax Resolution, I’ve handled over 500 cases. When you work with my team, you won’t have to deal with the IRS on your own. We handle all communication and negotiation on your behalf.
The IRS evaluates an Offer in Compromise based on a specific formula — assets, income, expenses, and future earning potential. Knowing how that calculation works from the inside is the difference between submitting an offer that gets accepted and one that gets rejected before it’s fully reviewed.
A Clear Plan for IRS Settlement
1.
Schedule a Free Confidential Consultation
We review your tax balance, current filing status, and financial position to determine whether an Offer in Compromise is a realistic option. You’ll leave with clarity about where you stand — not guesses.
2.
We Negotiate With the IRS
We take over communication with the IRS, respond to Revenue Officers, and work toward a resolution that protects you and limits your exposure.
3.
Get Back to a Good Night's Rest
When you have a plan for resolving the money you owe, your restlessness will melt away, you’ll sleep easy and get back to enjoying life again.
Related Tax Resolution Services
Serving Columbus-area businesses and companies throughout Ohio, Costello Tax Resolution helps business owners address IRS enforcement strategically.
Depending on your situation, your case may also involve:
Trust Fund Recovery Penalty Defense
If payroll taxes remain unpaid, the IRS may attempt to hold certain individuals personally responsible for the portion withheld from employees. We provide representation to address and defend against Trust Fund Recovery Penalty exposure.
IRS Liens and Levies
When enforcement intensifies, the IRS may file liens or levy bank accounts. Early intervention can reduce the risk of operational disruption and protect business stability.
Payroll Tax Problems
When missed deposits or multiple quarters are involved, structured representation can address compliance, enforcement, and long-term resolution.
Asset Protection Planning
If enforcement pressure is increasing, proactive planning can help protect income and assets before further action is taken.
Payroll Tax Problems
When missed deposits or multiple quarters are involved, structured representation can address compliance, enforcement, and long-term resolution.
Frequently Asked Questions About Offer in Compromise
An Offer in Compromise (OIC) is a formal IRS program that allows qualified taxpayers — individuals and businesses — to settle tax debt for less than the full amount owed. Approval is based on your financial condition, assets, income, and ability to pay. Hardship alone is not enough. The IRS has to determine that it cannot reasonably collect the full balance before it will accept a reduced amount.
Qualification depends on your financial reality. The IRS evaluates income, necessary expenses, asset equity, and future earning potential. If the IRS determines you can fully pay the balance over time — through installments or asset liquidation — it will generally expect full payment. Both individuals and businesses can qualify. A careful financial review is the first step in determining whether an Offer in Compromise is truly available to you.
There is no standard percentage or “pennies on the dollar” formula. The IRS calculates a settlement amount based on available assets and projected future income. The amount accepted depends entirely on your documented financial condition and compliance history.
The process can take several months or longer, depending on case complexity and whether a Revenue Officer is involved. During that time, your tax filings and compliance must remain current. Proper preparation up front helps prevent unnecessary delays or rejection.
If the IRS rejects the offer, you may have the right to appeal the decision within a limited timeframe. In some cases, a different resolution strategy may be more appropriate. That’s why careful evaluation before anything is submitted matters — a rejected offer doesn’t just cost time, it can affect your position going forward.
When a Revenue Officer is assigned, your case has moved beyond automated notices. A real person is now responsible for collecting the debt. Deadlines shorten, financial scrutiny increases, and enforcement actions can follow quickly. An Offer in Compromise is still possible at this stage, but timing and preparation become even more critical.
“Fresh Start” is not a special settlement program. It refers to IRS policy adjustments that expanded eligibility for certain relief options, including Offers in Compromise. Qualification still depends on your financial documentation and ability to pay under standard IRS guidelines.
Before you file anything, know whether settlement is truly possible.
Schedule a confidential consultation. Find out exactly where you stand, what the IRS is likely to accept, and how to pay the least amount possible — without navigating it alone.