Do You Need an Attorney to File an Offer in Compromise? DIY vs. When to Hire a Pro

If you’re considering an Offer in Compromise (OIC), one of the first questions that often comes up is whether you need an attorney to file it. The short answer is no. The IRS allows taxpayers to represent themselves, and people can successfully submit OICs on their own.

The more important question is whether handling the process yourself makes sense for your specific situation. Filing an OIC on your own involves weighing the costs against the risks. We’ll walk you through when a DIY approach is reasonable and when professional help can add value.

Table of Contents

1. What is an Offer in Compromise (OIC)?
2. Do you need an attorney for an OIC?
3. When to file on your own
4. Risks of filing on your own
5. When to hire a tax attorney
6. Tax attorney vs. tax relief company
7. Where tax relief companies can fit
8. How to decide
9. DIY vs. professional help

What is an Offer in Compromise (OIC)?

An Offer in Compromise is a formal agreement that allows a taxpayer to settle a federal tax debt for less than the full amount owed. The IRS may accept an OIC if it determines that you can’t pay the balance based on your financial situation or that paying in full would cause a financial hardship.

Approval isn’t based on hardship alone, but on the IRS’s assessment of your ability to pay over time. To make that determination, the IRS relies on detailed financial information about your income, expenses, assets, and liabilities to evaluate the amount it believes you can reasonably afford to pay.

In some cases, the IRS may also consider an OIC when there is legitimate doubt that the tax liability is owed, either as to the amount or the existence of the debt.

Because these decisions rely heavily on how your financial situation is presented, even small errors or omissions in the required paperwork can affect the outcome. Clearly and accurately communicating your financial picture is crucial to how smoothly the process moves forward.

Do you need an attorney for an Offer in Compromise?

You’re not required to hire an attorney to file an OIC. The IRS allows taxpayers to represent themselves, and it’s possible to successfully submit OICs without professional assistance.

IRS forms, instructions, and online resources are publicly available, making a DIY approach possible in many cases. It’s also possible to get help from the IRS. For instance, the IRS Taxpayer Advocate Service (TAS) may be able to provide assistance with an OIC.

TAS is an independent organization within the IRS that works to protect taxpayer rights and assist individuals experiencing financial hardship or unresolved issues with the IRS. TAS services are provided at no cost.

That said, what’s allowed and what’s advisable are not always the same. The decision to handle an OIC on your own often comes down to the complexity of your financial situation, the level of risk involved, and your comfort navigating IRS requirements and correspondence.

When to file an OIC on your own

Filing an OIC on your own may make sense when your financial situation is relatively straightforward. This could include cases where you have the following:

• Stable income
• Limited assets
• No active IRS enforcement actions
• Clear documentation supporting your financial position

A DIY approach may also work if you’re comfortable communicating directly with the IRS and following detailed instructions. The IRS provides online OIC information for those who choose to file on their own, and the Taxpayer Advocate Service also offers detailed OIC resources that can be helpful.

Keep in mind that self-filing an OIC requires time, organization, and close attention to detail. If you’re willing to carefully review IRS guidance and prepare your materials thoroughly, settling with the IRS on your own may be a practical option.

Risks of filing an OIC on your own

Filing an OIC on your own carries risks if you don’t meet the requirements or follow the process carefully. If you submit an application and the IRS determines you aren’t eligible, it will return the application and fee, and any payment you included will be applied to your tax balance. 

But you can’t get back the time you spent preparing the offer. Even if you are eligible, incomplete financial disclosures, unrealistic offers, or missed steps may result in the OIC offer being returned to you or completely rejected, though you may have an option to reapply or appeal the decision. 

While IRS collection activities and payments on an existing installment agreement are generally paused while an OIC offer is under review, the IRS may still file a notice of federal tax lien during this time.

You can expect the IRS to want the forms, documentation, and payments to be submitted exactly as required. If you’re unsure about eligibility or don’t feel confident managing the process with precision, seeking help may reduce those risks.

When to hire a tax attorney or professional

Hiring professional help may make sense when your tax situation is complex or when the consequences of errors are higher. This could include cases involving multiple years of unpaid taxes, business income, significant assets, disputed liabilities, or even prior IRS enforcement actions.

Beyond the professional’s job title, credentials matter. In addition to tax attorneys and reputable accountants, such as Certified Public Accountants (CPAs), licensed Enrolled Agents (EAs) are federally credentialed tax professionals authorized to represent taxpayers in all types of IRS matters. 

Some attorneys and accountants also hold EA credentials or work closely with licensed Enrolled Agents, which can be especially helpful in complex cases that require a combination of legal, accounting, and procedural expertise.

If eligibility is unclear or the process is difficult to manage precisely, working with a qualified tax professional may reduce risk and prevent avoidable setbacks. Verifying a professional’s credentials is also an important step in protecting yourself from tax-related scams.

Tax attorney vs. tax relief company: What’s the difference?

Tax attorneys and tax relief companies are often confused, but they serve different roles and operate under different standards.

• A tax attorney is a licensed legal professional who can provide legal advice, represent you in disputes, and handle complex or adversarial tax matters. Some tax attorneys also hold additional credentials or work with CPAs or licensed Enrolled Agents.
• A tax relief company is a business that offers services to help taxpayers resolve tax debt. These companies may employ or contract with licensed tax professionals. Representation depends on who is assigned to your case.

Attorneys may be especially helpful when legal interpretation, liability disputes, or IRS enforcement actions are involved. Tax relief companies often focus on coordinating the process, with the level of professional involvement varying by provider.

Here are several differences between tax attorneys and tax relief companies:

Where tax relief companies can fit

Tax relief companies can be helpful when a taxpayer needs support organizing paperwork, managing deadlines, and handling ongoing communication with the IRS, especially when the situation has become overwhelming or time-sensitive.

Some firms employ licensed professionals, such as tax attorneys, Enrolled Agents (EAs), and certified public accountants (CPAs). When credentials are verified and roles are clearly defined, this can add meaningful value. That said, caution is still essential, as the tax relief space has a long history of aggressive marketing and misleading claims.

You should be wary of any company that guarantees you qualify for tax relief, pressures you to act quickly, or requires large upfront payments without clearly explaining what services are included. Reputable firms disclose their fees, outline the scope of work in writing, and explain who will actually handle your case.

For example, Anthem Tax Services employs tax attorneys, licensed Enrolled Agents, and CPAs, and offers a money-back guarantee if it’s unable to reduce or rework a client’s tax debt. While that guarantee can provide added reassurance, it’s still important to confirm the credentials of the professionals assigned to your case and understand how your situation will be evaluated, managed, and communicated throughout the process.

How to decide: A quick self-check before you choose

Choosing between a DIY approach and professional help often comes down to complexity, risk, and confidence in managing a precise IRS process. 

Filing on your own can work well in simpler situations, while professional support may add value when eligibility is unclear, your financial situation is complex, or the consequences of mistakes are higher. 

Reviewing the pros and cons of each option can help figure out which path fits your unique financial circumstances.

Filing on your own

Pros

• Lower out-of-pocket costs

• Full control over the process

• Free access to IRS forms and resources is available

Cons

• Requires attention to detail to avoid making mistakes

• Higher risk of errors or delays

• Full personal responsibility for paperwork accuracy, deadlines, and follow-up

Working with a tax professional

Pros

• Professional guidance on eligibility and offer structure

• Experience with IRS procedures and correspondence

• Reduced risk of avoidable mistakes

Cons

• Added cost

• Quality and expertise vary by provider

• Still requires your involvement and documentation

DIY vs. professional help

You don’t need an attorney or other professional to file an Offer in Compromise. The IRS allows self-representation, and a DIY approach can work well in simpler situations when you are comfortable managing a detailed, rules-driven process.

At the same time, professional help can be valuable when finances are complex, eligibility is unclear, or the cost of mistakes is high. The right choice depends on your financial situation, risk tolerance, and ability to follow the IRS’s requirements. 

Starting with IRS resources and an honest self-assessment can help you decide whether handling the process yourself or seeking qualified support makes the most sense for your situation.

---

Related articles