Appeal a Rejected Offer-in-Compromise (OIC)

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship.  IRS will consider the following:

• Your ability to pay.
• Income.
• Expenses.
• Assets/Equity.

The following is an excerpt from the IRS site publication on its Offer in Compromise program:

My OIC was rejected. Should I request an appeal?

This online self-help tool is designed to assist you in deciding whether to request an appeal for a rejected OIC.

Before you begin...
This tool is for you if the following statements apply:

• You received a 30-day letter rejecting an OIC,
• You are a W-2 wage earner,
• You do not own rental property, and 
• You are not self-employed.

If this tool does not fit your needs, consult the requesting an OIC appeal overview, to learn more about Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, the IET and AET worksheets, required attachments and financial standards.

Refer to Preparing a Request for Appeal if you only need information on how to submit a request for an appeal.

Page Last Reviewed or Updated: 4-Dec-2015