Question: What is an Offer in Compromise (OIC) with the IRS?
Answer: If the IRS has determined that you are unable to pay the full amount due to them either with your current assets or with your future income stream less certain living allowances, they may enter into an Offer in Compromise. This will allow you to settle your debt to the IRS for less than the full amount you actually owe. Be leery of those who promise to settle your IRS debts for pennies on the dollar. They may be promising more than they can deliver.