--- title: "Offer in compromise: Definition and Sources | Tax Glossary" description: "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." url: https://wallacecpa.multisites.ai/glossary/offer-in-compromise publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- 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](https://wallacecpa.multisites.ai/glossary/installment-agreement) or from asset equity. Returns must be filed, and approval is never certain. A [tax lien](https://wallacecpa.multisites.ai/glossary/tax-lien) may stay in place while the case is open. The [IRS problems page](https://wallacecpa.multisites.ai/services/irs-problems#offer-in-compromise) explains how the options compare. [Wallace CPA can helpIRS problem resolution](https://wallacecpa.multisites.ai/services/irs-problems) ## Related terms - [Installment agreement](https://wallacecpa.multisites.ai/glossary/installment-agreement) - [Tax lien](https://wallacecpa.multisites.ai/glossary/tax-lien) - [Tax levy](https://wallacecpa.multisites.ai/glossary/tax-levy) - [Form 2848 power of attorney](https://wallacecpa.multisites.ai/glossary/form-2848-power-of-attorney) ## Sources 1. [IRS: Offer in compromise](https://www.irs.gov/payments/offer-in-compromise) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092