Offer In Compromise

What is an Offer in Compromise?

There is no legal right to have a valid tax bill reduced by the IRS; it is entirely a matter of government discretion.

The  IRS defines an Offer in Compromise (OIC) as an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer's tax liabilities for less than the full amount owed.  


If you think you may qualify for an Offer in Compromise, then our office can help pre-qualify you, confirm your eligibility and put a proposal together for you.


To make its determination,the IRS requires a full financial work-up of your situation to fully assess your ability to pay. Submitting an Offer in Compromise can be complex and time-consuming. You need knowledgeable tax accountants on your side to not only complete the paperwork, but also to:
  • Help you understand the process
  • Make sure an Offer in Compromise is your best alternative
  • Educate you about possible repercussions
  • Keep your interests and goals front and center

If you find yourself in a situation where you owe money to the IRS that you can't pay in Full, there are several options available to you.  One is an Offer in Compromise, through which you offer to pay the IRS less than the total you owe. Offer in Compromise are considered by the IRS on a case-by-case basis by looking at the following:
  • Your gross income
  • The amount of your expenses
  • Your asset equity
  • Whether paying your debt in full creates a financial hardship

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