What is an Offer in Compromise?

An Offer in Compromise (OIC) is a program offered by the IRS that allows taxpayers to settle their tax debts for less than the full amount owed. This option is particularly beneficial for individuals who are unable to pay their tax liabilities in full due to financial hardship.

Eligibility Criteria

To qualify for an OIC, taxpayers must demonstrate that they cannot pay their tax debt in full or that doing so would create an economic hardship. The IRS evaluates the taxpayer's income, expenses, and asset equity to determine eligibility.

“An OIC can provide a fresh start for those struggling with tax debt.”