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Collection Procedural Questions

Question: I am unable to pay my delinquent taxes. Will the IRS accept an offer in compromise?


You may qualify for an offer in compromise (OIC) if you are unable to pay your taxes in full, are facing economic hardship or other special circumstances. Refer to Tax Topic 204 - Offers in Compromise, for more information.

The following details the application process and the items you need for consideration of your application:

  • Complete the application using Form 656, Offer in Compromise, available in Form 656-B (.pdf), Offer in Compromise Booklet.
  • You must include the $186 application fee with your offer. If you are requesting a low-income exception of the fee, complete Section 4 of Form 656.
  • See Step 6 on page 4 of the Form 656-B, for more information on the required initial payment and application fee.
  • See Steps 2 and 3 on page 4 of the Form 656-B to determine if you must include either:
    • A completed Form 433-A (OIC) (.pdf), Collection Information Statement for Wage Earners and Self-Employed Individuals, or
    • A completed Form 433-B (OIC) (.pdf), Collection Information Statement for Businesses.

If your application is rejected and you are unable to pay your delinquent taxes in full at the time, you may still be eligible for an installment agreement. Refer to Tax Topic 202 - Tax Payment Options, for more information on paying in installments, user fees, etc.

Category: IRS Procedures
Subcategory: Collection Procedural Questions

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The OMB number for this study is 1545-1432.
If you have any comments regarding this study, please write to:
IRS, Tax Products Coordinating Committee
1111 Constitution Avenue NW
Washington, DC 20224