You may see ads from companies promising you they can settle your tax debt for less. While it is true that an offer in compromise (OIC) allows you to settle your tax debt for less than the full amount you owe, what these companies don’t tell you is that you don’t need to go through them to make the offer. They also don’t tell you that making an offer is not an option for everyone. It’s a last resort for those who have exhausted other available options to pay their debt in full, including payment plan options. You must also meet certain eligibility requirements to qualify for an offer.
These companies also don’t tell you an application fee is the only additional cost, aside from any offer-related payments, that the IRS charges to submit an offer, and that this fee is waived if you meet certain criteria. You can save yourself time and money if you submit the offer yourself.
Follow the steps in this video to submit the online application.