What Is an Offer In Compromise (OIC) and How Does It Work?
What is an Offer in Compromise (OIC)? Discover what an Offer in Compromise is and how it can help you settle your tax debts for less than you owe.
Frequently Asked Questions
##### What is an Offer in Compromise (OIC)?
##### Who is eligible for an Offer in Compromise?
##### What types of tax debt can be included in an OIC?
##### How is the amount of the OIC determined?
##### Are there fees associated with applying for an OIC?
##### What happens if my OIC is accepted?
##### What happens if my OIC is rejected?
##### How long does it take to process an OIC application?
##### Can I negotiate with the IRS regarding the OIC amount?
##### Is it advisable to seek professional help when applying for an OIC?
An Offer in Compromise (OIC) is a tax settlement program offered by the IRS that allows eligible taxpayers to settle their tax debt for less than the full amount owed. It provides individuals and businesses facing financial hardship with a way to resolve their tax liabilities and achieve a fresh start. Here's how the OIC process works:
An Offer in Compromise can be a valuable tool for individuals and businesses struggling with overwhelming tax debt. However, the process can be complex, and it's often advisable to seek professional assistance to navigate it effectively and maximize your chances of success.
Yes, there is a non-refundable application fee for submitting an OIC. However, this fee may be waived if you meet certain low-income criteria.
Remember that OIC applications can be complex, and the IRS has specific criteria for approval. Seeking professional guidance is often a wise decision to navigate the process successfully.
Request a free consultation with our experts today and take the first step towards achieving your goals.
This content was written and reviewed by the licensed tax attorneys at Victory Tax Lawyers, LLP. Our attorneys specialize in IRS tax relief and are licensed members of the California State Bar with a nationwide practice.
Last Reviewed: 2026 · Meet Our Attorneys →
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