Have you ever found yourself in a position where you simply can’t pay your taxes? What if there was a way for you to settle your tax debt for less than the full amount owed? The Offer in Compromise (OIC) is a lifeline for taxpayers facing financial hardship, providing an opportunity to resolve their tax debt and regain financial stability.

The Offer in Compromise Booklet has detailed information.

Navigating the complexities of the OIC process can be overwhelming, but the IRS has provided a comprehensive Offer in Compromise Booklet to help taxpayers understand the process. This invaluable resource outlines everything you need to know about submitting an OIC, including eligibility, costs, application process, and the required forms. For Spanish-speaking taxpayers, the booklet is also available in Spanish. Make sure to download and use the latest version of the OIC booklet to avoid any processing delays.

Taxpayers can also watch a how-to video series on Offer in Compromise

For those who prefer visual aids, the IRS offers a free how-to video series on the Offer in Compromise, available in English, Spanish, and Simplified Chinese. This easy-to-follow playlist covers an overview of the OIC process, step-by-step guides for completing the required forms, and a checklist to ensure a valid submission. The video series is an excellent resource for taxpayers considering and applying for an OIC.

Taxpayers can see if they’re eligible with the pre-qualifier tool

Before diving into the application process, taxpayers can use the pre-qualifier tool to determine their eligibility for an OIC. By entering their financial information and tax filing status, the tool calculates a preliminary offer amount. Keep in mind that this tool is only a guide, and the IRS will make the final decision on whether to accept the taxpayer’s application.

Beware of offer in compromise mills

While the OIC program is designed to help those in genuine need, unscrupulous “offer in compromise mills” prey on financially vulnerable taxpayers. These mills aggressively promote OICs in misleading ways to individuals who clearly don’t qualify, often costing taxpayers thousands of dollars. Don’t fall victim to these schemes; instead, check your eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool.

The Offer in Compromise can be a saving grace for taxpayers facing financial hardship. By utilizing the resources provided by the IRS, including the OIC booklet, video series, and pre-qualifier tool, individuals can navigate the process with confidence and take the necessary steps towards resolving their tax debt.