IRS notices
Offer in compromise
An offer in compromise is an IRS program that may let a taxpayer settle a tax debt for less than the full amount owed, based on ability to pay.
An offer in compromise, or OIC, is a request to settle a tax debt for less than the total. The IRS looks at income, expenses and asset equity. It may accept an offer when the taxpayer cannot pay in full or full payment would cause financial hardship.
It is not a shortcut. The IRS generally will not accept an offer from someone who can pay through an installment agreement or from asset equity. Returns must be filed, and approval is never certain. A tax lien may stay in place while the case is open. The IRS problems page explains how the options compare.
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