The IRS Offer in Compromise (OIC) program is available to business taxpayers, including currently operating businesses. You may be able to settle both personal and business tax debt with one OIC or two separate OICs, depending on the type of business you run. Business...
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IRS Offer in Compromise
Offer in Compromise for Doubt as to Liability
An Offer in Compromise (OIC) for doubt as to liability is used when there is a legitimate dispute as to whether the taxpayer actually owes the tax. This type of OIC is not based on your financial situation or ability to pay off your tax debt in full. When There is...
Offer in Compromise for Effective Tax Administration
An Offer in Compromise (OIC) for Effective Tax Administration (ETA) is less common than other types of offers, but can be effective in certain situations. You should explore an ETA offer after you have considered other, more common tax resolution options and...
What Do You Need to File an Offer in Compromise?
The IRS Offer in Compromise (OIC) forms require a lot of work to complete. Before you embark on this long application process, consult with a tax attorney to discuss whether your offer has a reasonable chance of being accepted. You’ll need to submit the following...
What to Do Once Your Offer in Compromise is Accepted
It can take a lot of effort to get an Offer in Compromise (OIC) accepted. Once that happens, you just want to make sure you comply with all the offer terms and don’t do anything that could cause your OIC to go into default. Make Your Payments Your OIC must be paid in...
Can You Pay an Offer in Compromise in Installments?
The IRS Offer in Compromise (OIC) program allows for either a lump-sum payment or periodic payment option. However, the lump sum option actually allows for a limited amount of periodic payments as well. Lump Sum vs. Periodic Payment Offers You must submit 20% of your...
How Does the IRS Determine Reasonable Collection Potential?
IRS Offers in Compromise are evaluated based on a taxpayer’s reasonable collection potential (RCP). If your offer is at least as much as your RCP, it should be accepted. RCP is basically the equity you have in your assets added to your monthly disposable income. For...