View our interactive tax map to see where you are in the tax process. It could help you navigate your way through the IRS.
If you can’t pay your tax debt in full, or if paying it all will create a financial hardship for you, an offer in compromise (OIC) may be an option. An OIC (also known as an offer) is an agreement between you and the IRS, where the IRS agrees to accept less than the full amount you owe to settle the debt.
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You have a tax balance due and want more information about an OIC. You should review all the other options that might be available to you. Some of these will have lower fees and can be easier and faster to obtain.
Before the IRS will consider an offer, you must make all required estimated tax payments for the current year, and if you are a business owner with employees, make all required federal tax deposits for the current quarter and the two preceding quarters.
Taxpayers in an open bankruptcy proceeding aren’t eligible to enter into an OIC.
Use the IRS Offer in Compromise Pre-Qualifier Tool to see if you may be eligible to make an offer. This tool is only a guide and does not guarantee acceptance of your offer. You can still discuss questions you have about filing an offer by contacting the IRS.
If you submit an offer, you will be required to pay a filing fee and initial payment unless you meet low-income waiver criteria. You will also be required to provide a complete financial statement showing all your assets and income.
This may include digital assets, find out more on digital assets and how this may apply to you.
The IRS will generally keep any payments made toward the offer (even if your offer is not accepted) and you must remain current with all tax filing and payment obligations throughout the offer process. If your offer is accepted, the IRS will keep any refund you are owed for tax returns filed through the date the IRS accepts your offer.
Submitting an offer will extend the time period the IRS has to collect your tax debt. You can read more about the offer process and find frequently asked questions here.
If you decide to submit an offer, you’ll need to give the IRS complete financial information. Make a list of your income, expenses, and assets and any debts owed against those assets. Follow the instructions in Form 656-B Booklet, Offer in Compromise, to prepare and file your offer. The booklet contains instructions on the required forms to submit, low-income waiver guidelines, payment options, offer terms and other information about the offer process.
Note: Submitting an offer doesn’t guarantee the IRS will accept your offer. It starts the process of evaluating your situation, your ability to pay, and the amount you’re offering. You can submit an offer on taxes owed individually and for your business.
Form 656-B Booklet,
Offer in Compromise
Publication 13711,
Request for Appeal of an Offer in Compromise
Publication 594,
The IRS Collection Process
Topic No. 202
Tax Payment Options
Read the Tax Topic
Topic No. 204
Offers in Compromise
Read the Tax Topic
Understanding your notice or letter
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If you still need help
The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers and protects taxpayers’ rights. We can offer you help if your tax problem is causing a financial difficulty, you’ve tried and been unable to resolve your issue with the IRS, or you believe an IRS system, process, or procedure just isn’t working as it should. If you qualify for our assistance, which is always free, we will do everything possible to help you.
Visit www.taxpayeradvocate.irs.gov or call 1-877-777-4778.
Low Income Taxpayer Clinics (LITCs) are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. For more information or to find an LITC near you, see the LITC page on the TAS website or Publication 4134, Low Income Taxpayer Clinic List.
