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What is the difference in an Offer in Compromise and an Installment Agreement?

April 26, 2017Agreement compromise difference installment Offer

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What is the difference in an Offer in Compromise and an Installment Agreement?

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OIC is a one time payment to the IRS to satisfy the total outstanding tax debt you owe to the IRS (this is a good option if you do not have cash flow to support a systematic monthly payment and have some value in an asset you can borrow against as well as offering a lump sum to settle the total debt for much less than the tax due). An Installment Agreement is an agreed to monthly payments to the IRS to satisfy the outstanding tax debt usually if it can be paid within a 60 month period.