Offers in Compromise

An Offer in Compromise (OIC) is a formal agreement between the IRS and a taxpayer to settle tax debt for less than the full amount owed.

Many state tax authorities offer similar programs.

This option is typically used when a taxpayer can prove they will not be able to repay the full debt, known as Doubt as to Collectibility. In some cases, it may also apply if there’s proof the taxes may not be owed at all, called Doubt as to Liability. A third category, Effective Tax Administration, is available when a taxpayer can demonstrate that paying the full amount would cause an exceptional financial hardship.

When an OIC is accepted, the IRS uses a set formula to determine the amount they’re willing to take instead of full payment. If that reduced amount can’t be paid in one lump sum, the IRS may allow it to be paid in installments over up to 24 months.

Many taxpayers qualify for an Offer in Compromise without realizing it’s even an option.

At Golden Lion Tax Solutions, we gather the right evidence to support your request, negotiate directly with the IRS, and push for a fair settlement figure that’s truly affordable. Without skilled representation, the IRS may demand a higher amount than your financial situation can handle.

If pursuing an Offer in Compromise is the right solution for you, we’ll be your advocate every step of the way, making sure your rights are protected and your settlement is fair.

If you want a tax debt resolution firm that will keep your best interests in mind as we battle on your behalf to address your IRS or state tax debts, reach out to the team at Golden Lion Tax Solutions.

There is ALWAYS a solution, and we are the experts at getting it done.