An offer In Compromise (OIC) is an offer made by a taxpayer to settle a tax liability for less than the full amount owed. The IRS will usually accept an OIC if it is unlikely that the tax liability can be collected in full, and the amount offered reasonably reflects collection potential.
The goal of the OIC program is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the government.
The Offer In Compromise is a program offered by the IRS to taxpayers who are unable to pay their tax debt. Those who qualify are allowed to make an offer in compromise, which is an offer to pay a lesser amount than that which is owed. The offer in compromise program is intended to allow taxpayers with substantial back taxes to settle their tax debt and start over with a clean slate, so that they can remain current on their taxes in the future.
At Lefstein-Suchoff CPA & Associates, LLC we help many individuals successfully get their offers accepted.