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Understanding Offer in Compromise
An Offer in Compromise (OIC) is a program offered by the Internal Revenue Service (IRS) that allows taxpayers to settle their tax debts for less than the full amount owed. This can be a lifeline for those who are struggling financially and unable to pay their full tax liability. The IRS considers several factors when evaluating an OIC application, including the taxpayer’s income, expenses, asset equity, and ability to pay1.