6. In past IRS really did not want to encourage OIC's. Prior to 1992 IRS has been reluctant to settle tax liabilities, but with mounting uncollected taxes, IRS has decided to go easy on growing number of cases it sees.

7. Today, OIC program is one of best tax resolution tools available to taxpayers. The IRS will accept an OIC when it looks unlikely that taxes will be collected; but before that happens a good tax person must know and carefully navigate virtually every key regulation involved.

8. After all taxpayer avenues are explored and different available payment options are reviewed, IRS makes a "business" decision: they want to collect a partial payment rather than nothing at all. The IRS is thinking, "Is there is doubt that taxpayer will ever pay full amount of tax owed?"

9. An OIC amount "offered" by IRS is amount that they feel that they can reasonably expect to collect after reviewing-- and exhausting--the taxpayer's ability to pay. The IRS weighs doubt as to liability and doubt as to whether tax assessed is correct.

10. Beware of advertisements they claim to settle tax debts for "pennies on dollar", allowing taxpayers to settle their taxes for less, or often much less than you owe (or what government claims you owe). The IRS resolves less than one percent of all balance due accounts through an OIC agreement.