If you owe back taxes to the IRS, you’ve likely heard of two major resolution options: the Offer in Compromise (OIC) and the Installment Agreement (IA).

Both can stop enforcement, remove collection pressure, and help you avoid further penalties — but they work very differently.

At Summit Tax Relief, we help Oklahoma clients determine which strategy is best based on your actual financial profile, not just what sounds appealing.

Let’s compare them side by side.

What Is an Installment Agreement?

An Installment Agreement is a formal payment plan with the IRS. You agree to pay your tax debt in monthly installments over time.

Pros:

• Easier to qualify for
• Stops levies, garnishments, and IRS enforcement
• Requires minimal documentation for balances under $50,000
• Can be adjusted later if circumstances change

Cons:

• You’ll pay the full balance, including penalties and interest
• No debt is forgiven
• A tax lien may still be filed
• Interest keeps accruing while you pay

What Is an Offer in Compromise?

An Offer in Compromise is an IRS program that lets you settle your tax debt for less than you owe if you can’t afford to pay in full.

Pros:

• Can reduce your debt by thousands — even tens of thousands
• IRS stops collections while your offer is under review
• Once accepted and paid, your remaining balance is forgiven
• IRS releases liens upon full payment of accepted offer

Cons:

• Harder to qualify for (based on income, assets, and allowable expenses)
• Requires extensive documentation
• Takes 6–12 months to process
• 20% upfront payment required with lump-sum offers

How to Know Which One You Qualify For

Oklahoma Case Examples

Case A – Installment Agreement Works Best:

A self-employed contractor in Tulsa owes $42,000. He has consistent monthly income and some equity in a vehicle and home. We negotiated a $750/month streamlined IA with no financial disclosure required.

Case B – OIC Approved:

A retired woman in Oklahoma City owes $78,000. Her only income is Social Security, and she has minimal assets. We submitted an OIC and settled her case for $2,300 — saving her over $75,000.

What Happens If You Choose the Wrong One?

Choosing the wrong IRS resolution path can:

• Cause your case to be rejected
• Delay enforcement protection
• Result in an unaffordable payment plan
• Lead to levies, liens, or garnishments returning later

We always evaluate IRS transcripts, asset reports, and income/expense disclosures before making a recommendation.

What About Partial Payment Installment Agreements?

If you don’t qualify for an OIC, but can’t afford full monthly payments under a regular Installment Agreement, the IRS may accept a Partial Payment Installment Agreement (PPIA).

This allows you to:

• Pay a reduced amount monthly
• Let the remainder expire after the Collection Statute Expiration Date (CSED)
• Still avoid enforced collection

Why Work With Summit Tax Relief?

• Based in Oklahoma
• CPA-led — no salespeople, no boiler rooms
• We don’t guess which path is best — we analyze everything first
• Flat-fee pricing — no billable hours or hidden costs
• We only take on serious tax debt cases ($25,000+)

Related Blog Posts (Internal Links)

• Who Qualifies for an IRS Offer in Compromise?
• How the IRS Calculates Your Offer Amount
• IRS CP504 Notice in Oklahoma – What to Do Next

Get Help Now

Not sure whether to settle or set up a payment plan? Don’t guess.


Call Summit Tax Relief at (833) 477-4911
Schedule Your Free Strategy Call



FAQ

Q: Which option is easier to qualify for?
A: Installment Agreements are much easier and faster. OICs are more powerful, but stricter and slower.

Q: Can I switch from one to the other?
A: Yes. Many clients start on a payment plan while we prepare a settlement offer.

Q: Will an OIC affect my credit?
A: No — the IRS doesn’t report to credit bureaus. But liens may still appear in public records.

Q: What happens if my OIC is rejected?
A: We can appeal or pivot to a Partial Payment Installment Agreement depending on your case.

📣 About the Author

Marc Boulanger, CPA is the founder of Summit Tax Relief LLC, based in Oklahoma City, OK.

With over a decade of experience helping individuals and businesses resolve serious IRS and State tax issues, Marc specializes in tax resolution strategies including Offers in Compromise, wage garnishment relief, and back tax compliance.

He is licensed as a Certified Public Accountant in both Oklahoma and California, and has a proven track record of helping clients settle complex tax debts and regain financial stability.

📍 Learn more at www.summittaxrelief.com or call (833) 477-4911.