June 1, 2022 2:34 am

New OIC Booklet for 2022

An offer in compromise (OIC) is an agreement between a taxpayer and the IRS that settles a taxpayer’s tax liabilities for less than the full amount owed. Taxpayers who can fully pay the liabilities through an installment agreement or other means generally won’t qualify for an OIC. Individuals and businesses that want to submit an offer in compromise should use the 2022 edition of Form 656 booklet. It contains all the necessary forms to submit an offer. If you’re thinking about submitting one, check out the IRS’s Offer in Compromise Pre-Qualifier Tool to determine your eligibility.

Tax Glossary

Tax deferral

Shifting income to a later year, such as where you defer taxable interest to the following year by purchasing a T-bill or savings certificate maturing after the end of the current year. Investments in qualified retirement plans provide tax deferral.

More terms