Offer in Compromise (OIC) Tabs

Offer in Compromise (OIC) Tabs is a 9-page legal document that was released by the U.S. Small Business Administration and used nation-wide.

FAQ

Q: What is an Offer in Compromise (OIC)?
A: An Offer in Compromise is a program that allows taxpayers to settle their tax debt for less than the total amount owed.

Q: Who is eligible for an Offer in Compromise?
A: Individuals and businesses who are unable to pay their tax debt in full and can demonstrate financial hardship may be eligible for an Offer in Compromise.

Q: What are the benefits of an Offer in Compromise?
A: The benefits of an Offer in Compromise include the opportunity to settle tax debt for less, the potential to stop collections activities, and the chance for a fresh start with your tax obligations.

Q: How do I apply for an Offer in Compromise?
A: To apply for an Offer in Compromise, you need to complete and submit Form 656, along with supporting documentation and the required application fee.

Q: How long does it take for the IRS to process an Offer in Compromise?
A: The processing time for an Offer in Compromise can vary, but it generally takes several months for the IRS to review and make a decision on your offer.

Q: What happens if my Offer in Compromise is accepted?
A: If your Offer in Compromise is accepted, you will need to follow the terms of the agreement, including making the agreed-upon payments and staying in compliance with your tax obligations for several years.

Q: What happens if my Offer in Compromise is rejected?
A: If your Offer in Compromise is rejected, you have the option to appeal the decision or explore other tax resolution options with the IRS.

Q: Can I hire a tax professional to help me with an Offer in Compromise?
A: Yes, it is recommended to seek the assistance of a tax professional who specializes in tax debt resolution to guide you through the Offer in Compromise process and increase your chances of success.

Q: Are there any fees associated with an Offer in Compromise?
A: Yes, there is a non-refundable application fee for an Offer in Compromise. However, eligible low-income taxpayers may qualify for a waiver of this fee.

Q: What is the Fresh Start Initiative?
A: The Fresh Start Initiative is a set of IRS policies aimed at helping taxpayers with tax debt to resolve their financial obligations more easily, including expanding eligibility for the Offer in Compromise program.