offer in compromise (OIC)

Popular Terms
Agreement between the Internal Revenue Service (IRS) and a taxpayer that allows the taxpayer to pay less than the total amount owed for tax liabilities. An offer in compromise is typically only permitted by the IRS if it's determined the taxpayer will not have the means to pay their owed taxes even after selling the taxpayers property and assets, and after taking into consideration that tax payers current and future earnings potential.

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