IRC §7122, Treas. Reg. §301.7122-1
Offer in Compromise
An Offer in Compromise allows you to settle your tax debt for less than the full amount owed. The IRS considers your ability to pay, income, expenses, and asset equity to determine an acceptable offer amount.
Who this may apply to
- Owe more than you can reasonably pay
- Have filed all required tax returns
- Current on estimated tax payments
- Not in an open bankruptcy proceeding
Strategy connections
Works well with
- Voluntary Disclosure / IRS Fresh Start: Required returns and current compliance generally must be addressed first.
What could block this
- Required returns have not been filed
- Current estimated-tax or deposit obligations are not being met
- An open bankruptcy case prevents consideration
- The financial analysis supports full collection
Professional support
Tax Resolution Specialist
Will evaluate your financial situation, prepare the offer documentation, and negotiate with the IRS on your behalf.
Official sources
Reviewed 2026-07-24