Offer in Compromise

An Offer in Compromise (OIC) is a formal agreement between a taxpayer and the IRS that allows the taxpayer to settle their tax debt for less than the full amount owed. It is typically considered when the taxpayer cannot pay the full debt or doing so would cause financial hardship. To qualify, the taxpayer must demonstrate their inability to pay through financial information. If accepted, the OIC can provide a fresh start for individuals struggling with tax obligations. It’s a way to resolve tax debts more manageable and prevent collection actions.