Offer in Compromise - Qualifying Conditions

Qualifying Conditions

At least one of three conditions must be met to qualify a taxpayer for consideration of an OIC settlement:

  • Doubt as to Liability — Debtor can show reason for doubt that the assessed tax liability is correct
  • Doubt as to Collectibility — Debtor can show that the debt is likely uncollectable in full by the IRS under any circumstances
  • Effective Tax Administration — Debtor does not contest liability or collectibility but can demonstrate extenuating or special circumstances that the collection of the debt would "create an economic hardship or would be unfair and inequitable." This Offer in Compromise program is available for any taxpayer, but is primarily used by individuals that are elderly, disabled, or have special extenuating circumstances.

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