Oct 12, 2021
The Offer In Compromise (OIC) program that the IRS has allows you to potentially settle your IRS tax debt for less than the full amount you owe. What you do is propose to the IRS a monthly payment amount for five months or up to 24 months. And the amount you offer is based on your assets and your monthly income.
They will look at your money in your bank accounts, how much money you're making, your monthly expenses, and if you own a home. Depending on where you live and your family situation, you're allowed a different amount of costs. If you have a particular situation like special medical expenses that are required or children that have special expenses, they may allow that, provided that you have documentation.
They also take into account how old your debt is. The IRS only has a certain time frame to collect your tax debt. So the older it is, the better chance you have of getting the offer in compromise accepted. This can be a great way to settle a large tax debt for a lot less than you owe. The OIC program has allowed us to save our clients hundreds of thousands of dollars.