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Key Takeaways
- An Offer in Compromise allows eligible taxpayers to settle IRS tax debt for less than the full amount owed.
- Eligibility depends on reasonable collection potential, based on income, assets, and allowable living expenses.
- The IRS reviews three offer types: doubt as to collectability, doubt as to liability, and effective tax administration.
- Incomplete filings, inaccurate financial disclosures, or noncompliance often result in returned or rejected offers.
- Professional guidance can help align financial documentation with IRS standards and improve approval chances.



