What is an Offer in Compromise? How often does the IRS accept these?

An Offer in Compromise, or OIC, is a program that was implemented by the United States Internal Revenue Service to allow people who are unable to pay their overdue tax liabilities a way of settling the debt they owe. Using an offer in compromise, you can offer an amount of money that is reasonable in relation to the amount of the debt, and affordable to you. The OIC option is not one that will be readily offered by the IRS when a person owes taxes or has an unresolved tax liability, however, and it is your responsibility to make the Offer in Compromise in order to satisfy the debt.  

• The IRS will only allow an OIC action if the individual who is filing the request can prove that his or her income is low enough that paying the entire balance wouldn't be possible, even over a long period of monthly installment payments utilizing the IRS Installment Plan. 
• If the IRS determines that the offer is not reasonable in relation to the amount of debt that is owed, in most cases the IRS will refuse or reject the OIC, especially if it is determined that the individual does generate enough income to satisfy the tax obligation either at once or in installments.

If you are considering making an offer in compromise, you should get a lawyer to assist you for the best chance of having your offer accepted.