Page 17 - OIC Guide
P. 17
- When a taxpayer can't pay their full tax
liability or if paying would cause
financial hardship, they may want to
consider applying for an Offer in
Compromise.
- This agreement between a taxpayer
and the IRS settles a tax debt for less
than the full amount owed.
- The goal is a compromise that?s in the
best interest of both the taxpayer and
the agency.
- The application fee for an offer in
compromise is $205.
An offer in - Low-income taxpayers don? have to
t
compromise pay this fee, and they should check if
they meet the definition of low-income
in the instructions for Form 656, Offer
can help certain
in Compromise.
taxpayers resolve
tax debt - When reviewing applications, the IRS
considers the taxpayer's unique set of
facts and special circumstances
affecting their ability to pay including
their:
- Income.
- Expenses.
- Asset equity
