- EXPERIENCED NATIONWIDE TAX RELIEF SERVICES - SERVING ALL 50 STATES - 14 DAY MONEY BACK GUARANTEE
Offer in Compromise
- Home
- Resolve Tax Issues
- Offer in Compromise
Offer in Compromise
An Offer in Compromise (OIC) is a way to settle your tax bill with the IRS without paying the full amount that you owe. In effect, you offer to pay the IRS a certain amount and the IRS forgives the remaining balance of your debt.
This option can help taxpayers who cannot afford to pay their full taxes get a clean slate with the IRS.
Eligibility for an Offer in Compromise
To qualify for an OIC, you need to meet a few eligibility requirements.
The most important is that the IRS will not consider an OIC unless you have filed all of your required tax returns and at least made an attempt to make required estimated tax payments. Beyond that, your ability to qualify for an OIC will depend on your ability to pay, income, living expenses, and assets.
In general, the IRS will accept an OIC when it believes that the amount you’re offering to pay is the maximum it can expect to collect within a reasonable time period if it used its typical collection process.
How an Offer in Compromise works
An OIC lets you settle your tax debt for less than the full amount that you can owe. To apply, you must submit forms to the IRS and pay a $205 fee.
You can request an OIC with a lump sum payment or with periodic payments. If you choose to offer a lump sum payment, you must submit an initial payment of 20% of the offered amount with your application. If you choose periodic payments, you’ll submit an initial monthly payment and make monthly payments going forward until the IRS accepts or declines your offer.
How to apply for an Offer in Compromise
To apply for an OIC, you have to submit multiple forms to the IRS, documentation of your financial situation, an application fee, and an initial payment. The IRS has up to two years to make a decision about your application. If it does not, your offer is automatically accepted.
Have Any Question?
If you have any question related to our services, feel free to contact us right away and we will get back to you as soon as possible.
Client Testimonials
Happy Client
I didn’t know it would be such a pain free process but they helped me handle some past due taxes (which I thought was going to be an arduous process). Thank you Tax Hardship Center!
Happy Client
Tax Hardship helped resolve my tax filing complications in a timely manner. The customer service was quick to respond as well as extremely helpful. I will definitely use their service in the future.
Happy Client
The team at Tax Hardship Center was successfully able to help me with my tax issues. They were kind and also empathetic to me during my hard financial times.
Work with the Tax Hardship Center
The paperwork involved with applying for an OIC is complex and gathering all the required information can be difficult. That’s where the Tax Hardship Center can help. Our tax professionals will help you complete all of the required paperwork and can negotiate with the IRS on your behalf to help you qualify for an OIC.
