Offer in Compromise: How They Work
An Offer in Compromise (OIC) is an offer you make to the tax authority. It is, as its name implies, a compromise between the amount of taxes you owe and the amount you can reasonably afford to pay, whether all at once or over time.
The IRS only processes OIC submissions if you meet all the required criteria listed in the Form 656b. If you will be submitting an OIC yourself, ensure you read everything on the OIC package so your OIC is not returned for missing information or payment (if applicable).