Settle with the IRS for Less Than You Owe—If You Qualify
The IRS Offer in Compromise (OIC) program allows eligible taxpayers to settle their tax debt for less than the full amount owed. But it’s not a guarantee—you need to meet strict criteria and present a detailed case.
Who Qualifies for an OIC?
- You can’t reasonably pay your full balance
- Your assets and income are insufficient to cover the debt
- You’re compliant with all current tax filings and estimated payments
How Polaris Helps You Qualify
- Analyze your financials to determine if an OIC is realistic
- Prepare IRS Forms 656 and 433-A/OIC or 433-B/OIC
- Structure your case to align with IRS acceptance guidelines
- Communicate directly with the IRS and manage responses
FAQs
What percentage of tax debt can be settled with an OIC?
There is no fixed percentage. The IRS evaluates what they believe they can reasonably collect.
How long does the IRS take to respond to an OIC?
The IRS generally responds within 6 to 12 months.
Does applying for an OIC stop IRS collections?
Yes—most collection actions are paused while your OIC is under review.