Taxpayers who can’t pay their full federal tax bill may seek an Offer in Compromise (OIC) with the IRS. An OIC allows a taxpayer to settle a debt for less than owed or to enter an agreement for more time to pay if paying the total would cause financial hardship. Applying for an OIC requires an application fee of $205, though a waiver may be available depending on income. In reviewing a taxpayer’s application, the IRS will assess the taxpayer’s ability to pay, income, expenses and asset equity. To be eligible, the taxpayer must have filed all tax returns that are due and be current on tax payments, including employment tax payments. Contact us with questions about this complex process. © 2024