Offer In Compromise
About Offer In Compromise:
An Offer In Compromise (OIC) is a settlement offer made by a taxpayer (on Former Federal Tax Form (check here if the Form is current) 656) to the U.S. Internal Revenue Service regarding a tax dispute when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects the collection potential. Generally, the U.S. Internal Revenue Service (IRS) will not compromise a criminal tax liability, and more offers are rejected than accepted. Former IRC (check if this IRC provision is current here) §7122.
Offer In Compromise and California Tax
For more information about taxes in California, click here.
The program is for taxpayers who do not have, and will not have in the foreseeable future, the income, assets or means to pay their tax liability. It allows a taxpayer to offer a lesser amount for payment of a non-disputed final tax liability.
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