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Offer in Compromise

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  • Offer in Compromise

How We Help with Offer in Compromise

What is an Offer in Compromise? An Offer in Compromise (OIC) is an agreement between you and the IRS to settle your tax debt for less than the full amount owed. For example, an OIC might allow you to pay only $5,000 to resolve a $100,000 tax liability. Most state taxing authorities also have similar programs with different names and procedures.

How can I get my Offer in Compromise approved? The IRS has strict approval standards for an OIC, making it a highly beneficial but challenging resolution to obtain. There are three situations where the IRS will approve an OIC:

  1. Doubt as to Liability: Uncertainty about whether the tax liability exists or is correct.
  2. Doubt as to Collectability: Uncertainty about whether the taxpayer can ever pay the full amount owed.
  3. Effective Tax Administration: Full payment would cause economic hardship or be unfair due to exceptional circumstances.

Offer in Compromise An OIC is one of the most desired tax resolutions for taxpayers owing money to the IRS and state taxing authorities. However, there is often confusion surrounding it. Both individuals and businesses can qualify for an IRS OIC. Due to the IRS’s in-depth review process, an OIC can take up to 24 months to be approved or denied. If approved, you can save thousands of dollars in repaying your tax liability.

We can help you decide whether an Offer in Compromise is the best solution for you.