Offer in Compromise

An Offer in Compromise (OIC) is a formal, written agreement between a taxpayer and the IRS to settle a tax liability for less than the full amount owed.  Many states have a similar program.  An OIC can be based on “Doubt as to Collectability” (the taxpayer proves he or she is not capable of repaying the debt in full), “Doubt as to Liability” (the taxpayer proves that there is some doubt as to whether the taxes should actually be owed) or “Effective Tax Administration” (typically the taxpayer proves some kind of hardship that warrants a settlement).

For more information, refer to our article on The IRS Fresh Start Initiative.


About Stephen K. Galgoczy, Esq.