How To Apply for an Offer in Compromise

You owe the IRS more than you can pay. You've heard that the IRS sometimes accepts less than the full amount. That's real—it's called an offer in compromise (OIC), and IRC Section 7122 gives the IRS authority to settle tax debts for less than what's owed.

But here's the reality check: Roughly 21% of OIC applications are accepted. The process takes up to 24 months, requires detailed financial disclosure, and pauses the 10 years collection statute while your offer is pending. An OIC is not a shortcut—it's a serious application that demands preparation.

Our guide to resolving IRS tax debt covers all your options at a high level, including installment agreements and currently not collectible status. This article goes deeper on the OIC itself: how the IRS calculates your minimum offer, how to complete the forms, and how to navigate the process from start to finish.

What Is an Offer in Compromise?

An OIC is a formal agreement between you and the IRS to settle a tax debt for less than the full amount owed. The IRS accepts an OIC when it represents the most it can reasonably expect to collect—or when special circumstances make full collection unfair.

Three things to know upfront:

• It takes time. The IRS says investigation can take up to 24 months, depending on inventory levels and case complexity.
• It requires full financial disclosure. You will document every asset, every dollar of income, and every monthly expense.
• The math matters more than the story. The IRS evaluates your offer against a formula—your Reasonable Collection Potential (RCP). If your offer is below your RCP, it will be rejected regardless of your circumstances.

Are You Eligible?

Before the IRS will consider your offer, you must meet several prerequisites. If you don't, your offer will be returned as "not processable"—and a return carries no appeal rights.

You Must Have:

• Filed all required tax returns. The IRS checks its records for filing compliance. Missing returns mean an automatic return of your offer. The IRS generally looks back six years.
• Received a bill for at least one tax debt included in your offer. If you've filed returns but the IRS hasn't yet assessed the tax, wait until you receive a bill.
• Made all required estimated tax payments for the current year. If you're self-employed or otherwise required to make estimated payments, you must be current.
• Made all required federal tax deposits if you're a business owner with employees.

You Cannot File an OIC If:

• You are in open bankruptcy. Resolve the bankruptcy first—tax debts must be addressed within the bankruptcy proceeding.
• You have an open audit or outstanding innocent spouse claim. Resolve those before submitting.
• Your tax debt has been referred to the Department of Justice for prosecution or defense.
• All collection statutes have already expired. There is nothing left to compromise.
• Your ITIN is deactivated. Reactivate it via Form W-7 first.

If your offer is returned for failing a processability requirement, the IRS applies any initial payment you sent to your tax debt but returns the $205 application fee. You cannot appeal a return—only a rejection.

A Substitute for Return (SFR) assessment counts as a filed return for processability purposes. If the IRS prepared an SFR for you, you don't need to file your own return for that year before applying—though filing your own return is often a better strategy because it usually reduces the assessed tax.

The Three Grounds for an OIC

The IRS considers offers on three separate grounds. Each works differently.

Doubt as to Collectibility (DATC)

This is the most common ground. You acknowledge that you owe the tax, but you show that the IRS cannot realistically collect the full amount before the collection statute expires. The IRS evaluates your offer against your Reasonable Collection Potential—the formula covered in the next section.

DATC uses Form 656 (the offer form) plus Form 433-A (OIC) (the financial statement for individuals). You must pay the $205 application fee and an initial payment with your application.

Doubt as to Liability (DATL)

You dispute that you owe the tax—or you dispute the amount. Maybe the IRS assessed tax based on a substitute for return and the numbers are wrong, or an audit produced a result you believe is incorrect.

DATL uses a separate form—Form 656-L—and works very differently from DATC:

• No financial statement required. You don't need to complete Form 433-A (OIC).
• No application fee. No deposit or initial payment.
• Your offer can be as low as $1, based on what you believe you actually owe.
• You must include a written statement explaining why the debt is incorrect, with supporting documentation.

DATL is not available if the tax debt was established by a final court decision. And you cannot file DATL and DATC at the same time—if you submit both, the IRS processes the DATL and returns the DATC.

Before filing a DATL, consider whether a simpler remedy applies—an amended return, audit reconsideration, penalty abatement, or a response to a CP2000 notice.

Effective Tax Administration (ETA)

You acknowledge the debt and the IRS could theoretically collect in full, but doing so would be unfair. There are two sub-types under Treas. Reg. Section 301.7122-1(b)(3):

• Economic Hardship: Collection would cause economic hardship—for example, a long-term illness preventing you from earning income, or liquidating assets would prevent you from meeting basic living expenses.
• Public Policy/Equity: Exceptional circumstances where full collection would undermine public confidence that the tax laws are administered fairly. Examples from the regulation include medical emergencies and erroneous IRS advice.

ETA is the least common ground and requires a compelling case. It uses the same forms as DATC (Form 656 plus financial statements).

How the IRS Calculates Your Minimum Offer

For DATC offers, the IRS uses a formula called the Reasonable Collection Potential (RCP). Your offer must equal or exceed your RCP, or it will be rejected. Understanding this formula is the single most important part of preparing an OIC.

The Formula

RCP = Net Equity in Assets + Future Income

Net Equity in Assets

The IRS values your assets at "quick-sale value"—80% of fair market value—then subtracts what you owe on them.

These are summed to produce Box A (individual asset equity) and Box B (business asset equity, if applicable) on Form 433-A (OIC).

Future Income

Future income is the amount the IRS believes you can pay per month over time, based on:

Remaining Monthly Income (Box F) = Total Household Income (Box D) minus Total Household Expenses (Box E)

Box E—your allowable expenses—is governed by IRS Collection Financial Standards, not by what you actually spend. More on that below.

The Multiplier

How long the IRS projects your future income depends on which payment option you choose:

Putting It Together

Minimum Offer = (Box A + Box B) + (Box F x multiplier)

Worked Example: Lump Sum Offer

Sarah owes the IRS $45,000. She's single, earns $3,800 per month, and owns a car and a checking account. No retirement accounts, no real property.

Assets:

• Checking account balance: $2,500. Minus $1,000 allowance = $1,500
• Car FMV: $12,000. Quick-sale value ($12,000 x 0.80) = $9,600. Minus $6,000 loan = $3,600. Minus $3,450 allowance = $150
• Box A (total asset equity) = $1,650

Monthly income and expenses:

• Monthly income (Box D): $3,800
• Allowable monthly expenses (Box E): $3,200 (based on Collection Financial Standards for her area—food, housing, transportation, health care)
• Remaining monthly income (Box F): $600

Future income (lump sum):

• $600 x 12 = $7,200 (Box G)

Minimum offer:

• $1,650 (assets) + $7,200 (future income) = $8,850

Sarah can offer $8,850 to settle a $45,000 debt. With a lump sum offer, she sends 20% upfront ($1,770) with her application, then pays the remaining $7,080 in five or fewer payments within five months after acceptance.

Worked Example: Periodic Payment Offer

Using the same facts, if Sarah chooses periodic payments instead:

Future income (periodic):

• $600 x 24 = $14,400 (Box H)

Minimum offer:

• $1,650 + $14,400 = $16,050

The periodic offer is higher because the multiplier is 24 instead of 12. Sarah sends her first monthly payment ($669) with the application and continues paying each month while the IRS evaluates her offer.

The lump sum option requires more cash upfront but results in a lower total offer. The periodic option spreads payments out but costs more overall.

When the Formula Does Not Apply

The RCP formula does not apply if the IRS determines you can pay your full tax debt within the remaining collection period. In that case, the IRS will not accept an OIC for less than the full amount—an installment agreement is the expected resolution.

Collection Financial Standards: What the IRS Allows You To Spend

The IRS doesn't use your actual monthly spending to calculate disposable income. It uses standardized expense allowances called Collection Financial Standards. These are the amounts the IRS considers necessary for basic living expenses. They are critical because they determine the "future income" component of your RCP.

National Standards (Same Everywhere)

Food, Clothing, and Other Items. A fixed allowance based on household size, covering food, housekeeping supplies, apparel, personal care, and miscellaneous expenses. You get the full standard amount regardless of what you actually spend—even if your actual costs are lower.

Out-of-Pocket Health Care. Per-person allowances that differ for people under 65 and 65+. Covers medical services, prescriptions, glasses, and contacts. This is in addition to health insurance premiums. You get the full standard amount regardless of actual spending.

Local Standards (Vary by Location)

Housing and Utilities. County-level allowances by household size, covering mortgage or rent, property taxes, insurance, utilities, phone, and internet. You get your actual expense or the standard—whichever is less.

Transportation. Two parts: ownership costs (lease or purchase payment, up to two vehicles) and operating costs (fuel, insurance, maintenance, registration, which vary by region). You get actual or standard, whichever is less. A public transportation allowance is available as an alternative.

Why This Matters

If you spend $2,500 per month on housing but the standard for your county is $2,100, the IRS allows only $2,100. That extra $400 per month increases your "remaining monthly income" by $400—which, over a 12-month multiplier, adds $4,800 to your minimum offer.

The IRS does not generally allow expenses for private school tuition, college expenses, charitable contributions, or unsecured debt payments (like credit card minimums) when calculating your OIC.

The current standards are effective April 21, 2025 and valid through June 2026. You can download the full tables from the Collection Financial Standards page. To find your local housing and utilities allowance, download the housing standards PDF, find your state, then look up your county and household size. Transportation standards are organized by census region (Northeast, Midwest, South, West) and metropolitan area.

Step-by-Step Application Walkthrough

Step 1: Check Eligibility With the Pre-Qualifier Tool

Start with the IRS OIC Pre-Qualifier Tool. Enter your financial information and it provides instant feedback on whether you're eligible and an estimate of your minimum offer amount. This is not a guarantee, but it gives you a realistic preview before investing hours in paperwork. The tool is also accessible through your IRS Individual Online Account.

Step 2: Gather Your Financial Documents

Before touching the forms, collect everything you'll need:

• Recent pay stubs or earnings statements from each employer
• Statements for every bank account (3 most recent months)
• Statements for every investment and retirement account
• Documentation of any digital assets (cryptocurrency, NFTs)
• Most recent loan statements (mortgage, auto, student, etc.)
• Income records for pensions, Social Security, rental income, interest, dividends, child support, and alimony
• Court orders for child support or alimony
• Verification of delinquent state or local taxes
• Most recent property tax assessment or appraisal (if you own real estate)
• Vehicle valuations (check NADA or Kelley Blue Book—use the "clean trade-in" value, not retail)

Do not send original documents—copies only.

Step 3: Download the Form 656-B Booklet

The Form 656-B booklet (PDF) contains everything you need: Form 433-A (OIC) for individuals, Form 433-B (OIC) for businesses, and Form 656 (the actual offer).

Step 4: Complete Form 433-A (OIC)

This is the financial statement—the most time-consuming part of the application. Here is what each section covers and the common pitfalls.

Section 1—Personal and Household Information. Name, Social Security number, date of birth, marital status, address, dependents. If you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), check the community property box—this affects how assets and income are attributed.

If you are married and only one spouse owes the tax, the non-liable spouse generally does not need to sign the offer or submit financial information—but their share of joint assets and joint household income may still factor into the calculation. If you are married and living separately, each spouse who owes tax submits a separate Form 433-A (OIC). If you and your spouse both owe joint tax debt, you typically file one joint OIC.

Section 2—Employment Information. Employer details, pay period, occupation. If you have an ownership interest in a business, you must also complete Form 433-B (OIC).

Section 3—Personal Asset Information. This is the big section. Report every asset—domestic and foreign—including checking and savings accounts, investments, digital assets, retirement accounts, life insurance, real property, vehicles, and other valuables. Apply the quick-sale value calculations (80% of FMV) and subtract allowances as described in the RCP formula above. The result is Box A: Available Individual Equity in Assets.

Common mistakes in Section 3:

• Forgetting to subtract the $1,000 bank account allowance or the $3,450 per-vehicle allowance
• Using purchase price instead of current fair market value
• Omitting digital assets (the IRS specifically asks about cryptocurrency and NFTs)
• Not accounting for retirement account withdrawal penalties when calculating the reduction from market value

Sections 4-6—Self-Employment Information. Complete these only if you are self-employed. Section 4 covers business details, Section 5 covers business assets (producing Box B), and Section 6 covers monthly business income and expenses (producing Box C: Net Business Income, which flows into Section 7).

Section 7—Monthly Household Income and Expenses. List all income sources (wages, Social Security, pensions, rental income, dividends, child support, alimony, and net business income from Box C). This produces Box D: Total Household Income.

For expenses, use the Collection Financial Standards. Two categories—food/clothing/miscellaneous (Box 39) and out-of-pocket health care (Box 45)—get the full standard amount even if your actual spending is lower. All other categories (housing, transportation, etc.) get the actual amount or the standard, whichever is less. The total produces Box E: Total Household Expenses.

Box F = Box D minus Box E. This is your remaining monthly income—the amount the IRS believes you can pay each month.

Section 8—Calculate Your Minimum Offer Amount. Multiply Box F by 12 (lump sum) or 24 (periodic payments). Add your asset equity from Boxes A and B. The result is your calculated minimum offer amount. Your actual offer must be equal to or greater than this number—and must be greater than zero.

Section 9—Other Information. Disclose litigation, bankruptcy history (past 7 years), time spent abroad (past 10 years), trusts, safe deposit boxes, foreign assets, and asset transfers exceeding $10,000 in the past 10 years. Be thorough—omissions here can be treated as concealment. If the IRS determines you transferred assets to reduce your offer amount (called "dissipated assets"), it can add the value of those assets back into your RCP calculation.

Section 10—Signatures. Sign under penalties of perjury. Both spouses sign if filing jointly.

Step 5: Complete Form 433-B (OIC) If Applicable

If you own a business that is a corporation, partnership, or LLC (other than a sole proprietorship), complete Form 433-B (OIC) for the business. Sole proprietors report business information through Sections 4-6 of Form 433-A (OIC) instead.

Step 6: Complete Form 656

Form 656 is the offer itself. It identifies the tax years and types of tax you're offering to compromise, your offer amount, and your payment terms (lump sum or periodic). Your offer amount must be equal to or greater than the amount calculated in Section 8 of Form 433-A (OIC).

If you have both individual and business tax debt, you may need two separate Forms 656—each with its own $205 application fee.

Step 7: Include Your Payment and Fee

Application fee: $205. The fee is returned only if the IRS returns your offer for failing processability (e.g., missing a tax return). On a merits rejection, the fee is kept. The fee is also waived entirely if you qualify for the low-income exception.

Initial payment:

• Lump sum offers: 20% of the total offer amount
• Periodic payment offers: the first proposed monthly installment

Make checks or money orders payable to "United States Treasury." Send separate payments for the fee and the initial payment. You can also pay via EFTPS or your IRS Individual Online Account.

The initial payment is non-refundable and will be applied to your tax debt whether or not the offer is accepted. You cannot use an expected tax refund, funds already seized by the IRS, or anticipated benefits from a net operating loss to pay your offer.

Step 8: Submit Your Application

Mail the complete package to the appropriate IRS processing site. The mailing address depends on your state of residence—check the Application Checklist on the last page of the Form 656-B booklet for the correct address. OIC submissions go to either the Brookhaven (NY) or Memphis (TN) Centralized OIC processing site.

Individual taxpayers may also submit through their IRS Individual Online Account.

If you are already working with an IRS employee (such as a revenue officer), let them know you are submitting an offer.

Lump Sum vs. Periodic Payment: Which Is Better?

The lump sum option produces a lower total offer because the future income multiplier is 12 instead of 24. But it requires 20% of the offer amount in cash upfront—and that 20% is non-refundable even if the offer is rejected.

The periodic payment option is easier to start—you only need one monthly payment—but you must continue paying every month while the IRS evaluates your offer. If you miss a payment before receiving a final decision, the IRS may return your offer. Payments already made are applied to your debt but not returned.

The Low-Income Exception

If your income is low enough, IRC Section 7122(c)(3) provides significant relief from the OIC's financial barriers.

Who Qualifies

You qualify if your adjusted gross income does not exceed 250% of the poverty line (based on household size) for the most recent taxable year. This is the same income threshold used by Low Income Taxpayer Clinics.

The 2026 income limits by household size:

What You Get

1. No application fee. The $205 is waived.
2. No initial payment required. Neither the 20% lump sum deposit nor the first periodic installment.
3. No monthly payments during review. You don't have to pay while the IRS evaluates your offer.
4. The IRS cannot reject your offer solely based on the amount offered.

To claim the exception, check the Low-Income Certification box on Form 656. The IRS verifies your income using its records.

If your offer is accepted under the low-income exception, your first payment is due 30 calendar days after acceptance.

Business entities other than sole proprietorships do not qualify for the low-income waiver.

What Happens After You Submit

Processing and Timeline

After the IRS receives your application, it sends a letter with an estimated contact date. Your offer is assigned to either an offer examiner (at a centralized office) or an offer specialist (field office), who will contact you by phone or mail—often to request additional documentation.

Protections During Review

While your OIC is pending:

• No levy. Under IRC Section 6331(k), the IRS cannot levy your wages, bank accounts, or other property while an OIC is pending.
• The collection statute is paused (tolled). The 10 years clock under IRC Section 6502 stops running. This means the IRS gets extra time to collect if your offer fails. For more on how this works, see Understanding IRS Statutes of Limitations.
• Penalties and interest continue to accrue. The OIC does not stop the meter.
• The IRS may keep your tax refunds. Refunds for tax periods assessed before the offer acceptance date may be offset against your debt—and those offsets do not count as payments toward your offer.
• The IRS may file a Notice of Federal Tax Lien.
• Any existing installment agreement payments are suspended.

Your Obligations During Review

You must stay current on all tax obligations while your offer is being evaluated. That means filing every required return on time and making all estimated tax payments and federal tax deposits. Failure to stay current can result in your offer being returned—with no appeal rights.

Counter-Offers

If the IRS calculates a higher RCP than what you offered, it will calculate what it believes the correct offer amount should be and give you an opportunity to increase your offer. If you don't increase it, the offer is rejected.

The 24-Month Deemed Acceptance Rule

Under IRC Section 7122(f), if the IRS does not reject your offer within 24 months of the date it was received at the processing site, the offer is deemed accepted by operation of law. The 24-month clock excludes any periods during which a judicial proceeding is pending.

Levy Before Acknowledgment

The IRS may levy your assets up to the time an IRS official signs and acknowledges your offer as pending. If a levy occurs before that point, the IRS may keep the proceeds.

If Your Offer Is Rejected

Rejection vs. Return: A Critical Distinction

• Rejection means the IRS considered your offer on its merits and said no. You have appeal rights.
• Return means the IRS determined your offer was not processable—usually because of missing tax returns, open bankruptcy, or a missing fee. You have no appeal rights.

Common Reasons for Rejection

• Your RCP exceeds the offer amount (most common)
• The IRS disputes your income or expense calculations
• Expense allowances claimed exceed the Collection Financial Standards
• Asset valuations appear understated
• Missing documentation
• Failure to stay current on filing or payments during review

How To Appeal

You have 30 days from the date of the rejection letter to request an appeal.

Use Form 13711 (Request for Appeal of Offer in Compromise) or submit a written letter. Include:

• A copy of the rejection letter
• The specific items you disagree with (identify each item on the Income and Expense Table or Assets and Equity Table from the rejection letter)
• Your reasons for disagreement with supporting documentation
• Any legal authority or precedent supporting your position

Be specific. The IRS Appeals guidance notes that vague statements like "I just can't pay" without explanation will not help. Identify the exact calculation or determination you believe is wrong and explain why.

Your appeal goes to the IRS Independent Office of Appeals. No levy may be made during the 30-day appeal period or while the appeal is pending.

Withdrawing Your Offer

You can withdraw a pending OIC at any time before the IRS makes a decision. The IRS returns the $205 application fee on withdrawal, but any initial payment you sent is applied to your tax debt and not returned. Withdrawal also stops the CSED tolling sooner than waiting for a rejection. Send a written withdrawal request to the COIC site processing your offer.

Re-Applying After Rejection or Return

There is no statutory bar on resubmitting an OIC after a rejection or return. If you fix the deficiency that caused the problem—file the missing return, increase your offer amount, gather better documentation—you can submit a new application. You'll need to pay the $205 fee again and start the process over.

After Acceptance: The 5-Year Compliance Rule

Getting your OIC accepted is not the finish line. For the next five years, you must stay in full compliance with all federal tax obligations.

What Compliance Means

• File every required tax return on time
• Pay every tax obligation on time (including estimated taxes)
• Make all federal tax deposits (if you have employees)

What Happens If You Default

If you fail to file or pay during the five-year compliance period, the IRS can default your offer. Default means:

• The original tax debt is reinstated—minus any payments you've already made
• All interest and penalties that accrued during the OIC period are added back
• You are back where you started, often owing more than when you submitted the offer

The IRS can also default your offer if you fail to promptly pay any tax debts assessed after acceptance for tax years prior to acceptance that were not included in the original offer.

Additional Post-Acceptance Rules

• If your final payment exceeds the agreed amount, the IRS applies the overpayment to your tax debt rather than returning it.
• Under Treas. Reg. Section 301.7122-1(e), the IRS can reopen a compromise if you supplied false information, concealed assets or ability to pay, or there was a mutual material mistake of fact.

When an OIC Is Not the Right Choice

An OIC is powerful in the right situation, but it's the wrong tool in several common scenarios.

The Collection Statute Is Approaching

If your CSED expires in a few years and you can't pay much, Currently Not Collectible (CNC) status is often a better choice. CNC does not toll the collection statute—the clock keeps running while the IRS suspends collection. Filing an OIC pauses the clock, giving the IRS more time to collect if your offer fails. For more on how the collection statute works, see Understanding IRS Statutes of Limitations.

You Can Afford an Installment Agreement

The IRS will generally not accept an OIC if you can pay your full tax debt through an installment agreement and/or equity in assets. The IRS explicitly checks whether an installment agreement is feasible before approving a DATC offer.

A Partial Payment Installment Agreement Might Be Better

If your RCP makes an OIC unattractive (the minimum offer is close to the full debt) but you can't pay in full, a Partial Payment Installment Agreement (PPIA) lets you make smaller monthly payments until the collection statute expires. Any unpaid balance is then written off. Unlike an OIC, a PPIA doesn't require an upfront lump sum and doesn't carry a 5-year compliance trap. See How To Resolve Your IRS Tax Debt for details.

The Dispute Is About Whether You Owe the Tax

If you disagree with the underlying liability—not your ability to pay—a DATC offer is the wrong ground. Consider a DATL offer (if the debt was not established by a court decision), audit reconsideration, an amended return, or penalty abatement.

Tax Resolution Company Promises

Be cautious of companies charging thousands of dollars to submit an OIC on your behalf. Many charge large upfront fees, file applications that get rejected, and leave clients worse off. If your income is below 250% of the poverty line, a Low Income Taxpayer Clinic provides free help—including OIC applications. The Taxpayer Advocate Service can also assist. For guidance on choosing the right help, see When To Get Professional Help.

Common Mistakes That Sink OIC Applications

Underestimating your RCP. The most common rejection reason is an offer amount below the IRS's calculated RCP. Use the OIC Pre-Qualifier Tool to estimate your RCP before you apply, and make sure your calculations match the IRS methodology.

Not filing all required returns first. The IRS will return your offer without considering it. This is non-negotiable—file all delinquent returns before submitting.

Missing the 20% initial payment (lump sum offers). If you choose a lump sum offer and don't include 20% of the offer amount, your application is incomplete.

Using actual expenses instead of Collection Financial Standards. The IRS uses standardized allowances, not your actual spending. If your rent is $2,500 but the local standard is $2,100, the IRS uses $2,100. Build your RCP calculation using the standards.

Ignoring estimated tax payments during review. If you're required to make estimated tax payments and you stop making them while your offer is pending, the IRS can return your offer. Stay current on all obligations.

Failing to continue periodic payments during review. If you chose a periodic payment offer, you must keep making monthly payments while the IRS evaluates. Missing a payment can result in a return of your offer—with no appeal rights.

Omitting assets. Every asset must be disclosed—including digital assets, safe deposit box contents, and foreign accounts. Omissions can be treated as concealment and may lead to rejection or, if discovered after acceptance, reopening of the compromise.

Resources

IRS Forms and Publications

• Form 656-B, Offer in Compromise Booklet (PDF)—contains Form 656, Form 433-A (OIC), and Form 433-B (OIC)
• Form 656-L, OIC for Doubt as to Liability (PDF)
• Form 13711, Request for Appeal of Offer in Compromise (PDF)

IRS Online Tools and Pages

• OIC Pre-Qualifier Tool
• Offer in Compromise Main Page
• Offer in Compromise FAQs
• Collection Financial Standards
• Appeal Your Rejected OIC
• IRS Individual Online Account
• Taxpayer Advocate: Offer in Compromise

Statutes and Regulations

• IRC Section 7122—Compromises
• IRC Section 6331—Levy and Distraint
• IRC Section 6502—Collection After Assessment
• Treas. Reg. Section 301.7122-1—Compromises

Related Articles

• How To Resolve Your IRS Tax Debt—overview of all debt resolution options including OIC, installment agreements, and CNC
• Understanding IRS Statutes of Limitations—how the collection statute (CSED) works and why OIC tolling matters
• Collection Due Process Hearings—proposing an OIC as a collection alternative at a CDP hearing
• How To Request IRS Penalty Abatement—reducing your balance before submitting an OIC
• How To Find and Use a Low Income Taxpayer Clinic—free help with OIC applications
• How To Get and Read Your IRS Transcripts—verifying your balance and assessment dates before applying
• Understanding Your IRS Balance—understanding what you owe before calculating RCP
• How Interest Works on Your IRS Tax Debt—interest continues during OIC review
• How To Respond to an IRS Audit—resolve open audits before submitting an OIC
• When To Get Professional Help—evaluating whether to hire a representative for your OIC
• How To File an Amended Return—may be needed before filing a DATL offer
• Common IRS Notices and Letters—identifying the collection notices that led to your situation

This article is for informational purposes only and does not constitute legal or tax advice. For advice specific to your situation, consult a qualified tax professional or attorney.