An Offer-in-Compromise is a program through which the government will agree to accept less than the full balance owed on a tax liability. An Offer-in-Compromise is based on a taxpayer’s income, expenses and assets.
While many firms will advise taxpayers to file an OIC, the fact is that most taxpayer DO NOT qualify for an OIC and they will eventually learn that their OIC was rejected. Be wary of any tax professional who claims that they can settle your tax liability for “pennies on the dollar.”
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