FAQ > Collections - Offer-in-Compromise FAQs > What is an Offer-in-Compromise?

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What is an Offer-in-Compromise?
An Offer-in-Compromise is an offer, as payment in full, of an amount less than the tax, premium or principal claim and that does not include any penalty or interest. An Offer-in-Compromise differs from a settlement in that the requirements for approval are much more stringent. If a business or individual seeks to waive the penalty and/or interest in part or whole, but will pay the tax, premiums and/or principal claim in their entirety, the offer is not an Offer-in-Compromise.