An Offer in Compromise (OIC) is an offer by you to settle the tax debt for less than what you owe.
Two payment options:
- Lump Sum Cash is 20% upfront with balance over five or fewer payments within 5 months of the day your offer is accepted.
- Periodic Payment requires first payment with offer and balance in monthly payments over 6-24 months.
Look at IRS.gov for Form 656, instructions and eligibility.
There is an online IRS tool to pre-qualify.....https://irs.treasury.gov/oic_pre_qualifier/
That link is helpful but not always 100% correct. We've had clients not qualify who were subsequently accepted.