Offer in Compromise


What is an Offer in Compromise?

An offer in compromise (or, “OIC”) is an option to resolve tax debt or debts based on either a financial inability to afford full payment or special circumstance. The three different types of offer in compromise proposals the IRS allows taxpayers to request are explained in further detail below:

OIC: Doubt as to Collectability

This is the most commonly filed and accepted type of OIC by taxpayers. Simply stated, if you can prove through disclosure of your financial information (assets, income, and monthly allowable expenses) that you cannot afford to pay the tax debt owed, the IRS could potentially agree to settle with you for the less than the full balance owed. Full financial disclosure is required in order to request and be granted approval this type of request to resolve your tax debt.

OIC: Effective Tax Administration

This type of OIC is filed when there are “special circumstances” in regard to your specific tax debt and personal situation. Perhaps this could be a serious medical issue, a natural disaster, or limited current/future income, which although you currently do have the ability to “full pay” what you owe, doing so would prevent you from a normal course of living in the future. Full financial disclosure is also required here, as well as specific information regarding your special circumstances.

OIC: Doubt as to Liability

This type of OIC is filed when you believe the IRS has incorrectly assessed a balance against you. Although financial disclosure is not required for this type of OIC because you are disputing whether or not the full amount is owed, you do need to provide evidence as to why you believe the balance is either inaccurate or incorrectly billed in order to gain approval for this type of OIC.


Successful Resolutions

Bill G.
Bill G.
5 months ago
Great service. Knows his stuff. Excellent communication. Years of experience in his specialty really makes a difference! Thanks Ryan!
Dawn G.
Dawn G.
7 months ago
I called Ryan needing advice. He was so helpful. Within days of my initial call, he had reviewed my paperwork and give me sound advice. Ryan was...
Audrey Jude A.
Audrey Jude A.
7 months ago
The two encounters I had with him over the phone were completely unpleasant, making unnecessarily rude comments. He's been completely unprofessional and...

Proud Member Of


Need help? Book a call at a time to suit you