Offer in Compromise Credit IRS : How New York Taxpayers Can Settle Tax Debt and Rebuild Credit By CPA Clinics –: York Tax Resolution Experts An IRS Offer in Compromise (OIC) is a tax relief program that allows qualifying taxpayers to settle federal tax debt for less than the full amount owed . Instead of paying the entire balance, you propose an amount based on what you can realistically afford, and the IRS reviews whether that offer reflects your true financial ability. For many New York taxpayers facing overwhelming IRS debt, an offer in compromise can provide a path to financial recovery , especially when full payment would cause long-term hardship. However, the process is detailed, time-consuming, and requires full financial disclosure making professional guidance from a CPA firm like CPA Clinics especially valuable. How an Offer in Compromise Affects Your Credit with the IRS One of the most common questions we hear is: “Does an offer in compromise affect my credit?” ...