IRS has a program called Offer in Compromise (OIC) which allows eligible Taxpayers to settle a tax debt with IRS for less than the full amount owed. Not all Taxpayers are eligible. The OIC is not available to partnerships, corporations, residents of U.S. territories or foreign countries, or military personnel using an APO or FPO address. Before IRS considers an OIC, the Taxpayer:

- Cannot be in an open bankruptcy proceeding.

- Must have filed all required federal tax returns.

- Must have made all required estimated payments.

- If a Taxpayer is an employer, then the Taxpayer must have made all required federal tax deposits.