Offer in Compromise (OIC)

Full Definition

An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS that settles tax liabilities for less than the full amount owed. The IRS considers the taxpayer's ability to pay, income, expenses, and asset equity when evaluating an OIC. To qualify, taxpayers must be current on all filing and payment requirements, and the IRS must believe the offer represents the most they can expect to collect within a reasonable timeframe.