You may qualify for an offer in compromise (OIC) if you're unable to pay your taxes in full, or 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.
• You must include the application fee and initial payment as explained in Form 656, unless you qualify for an individual low-income exception to the fee and payment as provided for at the end of Section 1 of Form 656. See Step 6 on page 5 of the Form 656-B, for more information on the required initial payment and application fee.
• See Steps 2 and 3 on page 5 of the Form 656-B to determine if you must include either:
  • A completed Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, or
  • A completed Form 433-B (OIC), Collection Information Statement for Businesses.
• Form 656 and referenced collection information statements are available in the Form 656-B, Offer in Compromise BookletPDF.

If your application is rejected and you're unable to pay your delinquent taxes in full now, you may be eligible for other payment options. Refer to Tax topic 202, Tax payment options for more information.