Has. Taxpayers can always file a compromise offer if they are unable to pay their tax debt in full or if this would result in a difficult financial situation. Taxpayers who wish to submit a bid should explore the OIC pre-qualification tool before submitting a bid. However, for taxpayers who cannot immediately pay the full amount, there are a large number of payment options, including payment plans or the instalment payment agreement in case of IRS.gov/payments. Most taxpayers who can pay through a payment plan can set it up with the IRS online payment agreement. As part of the accepted offer agreement, the IRS reserves any refunds, including interest, for taxes due in the calendar year in which the offer was accepted. The IRS no longer requires that instalment payment agreements in effect prior to receipt of an OIC remain in effect while an offer is reviewed. CNC and PPIA may be better options than an OIC, as these agreements do not always require the taxpayer to pay the IRS out of its own funds in assets. Taxpayers in financial difficulty are not asked to access equity (e..B g. equity in a house, savings, etc.) when the taxpayer needs the necessary means to pay the cost of living or is unable to access equity (i.e.: The bank will not grant a mortgage to the taxpayer). NCC and AIPP are often the most realistic option for taxpayers. An OIC, on the other hand, is traditionally much more difficult to approve, but offers more closure.

Once the agreement is concluded and the invoice paid, the tax debt will be repaid, regardless of the amount of money earned a posteriori by the taxpayer. If you do not agree with the refusal, you have 30 days from the date of the rejection letter to appeal following the instructions in the letter. If you accept the refusal, you can send full payment of your tax debt to avoid additional interest and penalties, or request a payment contract in instalments to pay your tax debt. There are doubts about recoverability if you agree with the amount due, but they are not able to pay the full amount due. If you are unable to pay the amount you owe through a lump-in payment and/or equity contract in your assets, complete Form 656 – Offer in Compromise in Form 656-B, Offer in Compromise Booklet PDF.