What Is an IRS Offer in Compromise? An IRS Offer in Compromise (OIC) is a formal agreement between a taxpayer and the Internal Revenue Service that allows the taxpayer to settle tax debt for less than the full amount owed . It is one of the most powerful tools available in tax controversy, yet it remains one of the most misunderstood. For high-net-worth individuals and business owners facing substantial tax liabilities, the OIC program represents a legitimate, congressionally authorized path to resolving otherwise crushing debt—but only when pursued correctly. The OIC program exists because Congress recognized that rigid collection of every dollar owed is not always in the best interest of the government or the taxpayer. In certain circumstances, accepting less than the full liability promotes voluntary compliance and generates revenue that the IRS might never otherwise collect. However, the IRS does not simply hand out settlements. The process is rigorous, the scrutiny is intense, and the rejection rate remains high—particularly for those who attempt to navigate it without experienced tax controversy professionals. At Neil Jesani Tax Resolution, our team of CPAs, Tax Professionals admitted to federal tax disputes, and Enrolled Agents has successfully guided hundreds of clients through the OIC process. With offices in Miami and Las Vegas and a staff of over 70 professionals, we bring the depth of experience necessary to handle even the most complex OIC cases. If you are considering an Offer in Compromise, call us at (800) 758-3255 for a free consultation to evaluate whether this strategy is is an OIC right for you r situation. The Three Types of Offers in Compromise Not all Offers in Compromise are created equal. The IRS recognizes three distinct grounds upon which a taxpayer may submit an OIC, each serving a different purpose and requiring different evidence....