Can I Settle My Tax Debt With The IRS For Less?

The Internal Revenue Service (IRS) is the government agency responsible for collecting taxes from individuals and businesses. Many people find themselves in a situation where they owe money to the IRS, but are unable to pay it back. Is there any way to settle your tax debt with the IRS for less than what you owe?

Yes, it is possible to negotiate with the IRS and lower your total tax bill. The process is called an Offer in Compromise (OIC). With an OIC, you may be able to settle your debt for less than you currently owe by proving that paying your full balance would cause undue financial hardship. Before deciding whether this option is right for you, it's important to understand how an OIC works, who qualifies, and what types of debts can be settled.