06/17/2026
The IRS Offer in Compromise Program Helps People Settle Tax Debts
People who cannot pay their tax bills in full have options to resolve the situation. One of these options is the Offer in Compromise (OIC) program, which allows eligible people to settle their debts with the IRS for less than the full amount owed.
Anyone interested in submitting an OIC proposal should begin by checking whether they qualify for the program, which can be done using the IRS Pre-Qualifier tool online (link below). People who meet the basic eligibility requirements may then submit an OIC application. In most cases, the application must be accompanied by a $205 fee and an initial payment toward the tax debt. However, these requirements may be waived for lower-income applicants.
An OIC application must be carefully prepared and provide detailed information to the IRS. Beware of aggressive ads touting supposed opportunities to settle tax debts quickly for a small fraction of the amount due. The agencies behind those ads, known as OIC mills, charge high fees to churn out applications, most of which get rejected by the IRS. A trusted tax professional can help ensure that an OIC application is complete and accurate, and has a reasonable chance of acceptance.
OIC Pre-Qualifier Online Tool: https://irs.treasury.gov/oic_pre_qualifier/