The Offer in Compromise (OIC) program, in the United States, is an Internal Revenue Service (IRS) program under , which allows qualified individuals with an unpaid tax debt to negotiate a settled amount that is less than the total owed to clear the debt. A taxpayer uses the checklist in the Form 656, OIC package to determine if the taxpayer is eligible for the program. The objective of the OIC program is to accept a compromise when acceptance is in the best interests of both the taxpayer and the government, and promotes voluntary compliance with all future payment and filing requirements. Qualifying conditions At least one of three conditions must be met to qualify a taxpayer for consideration of an OIC settlement: Doubt as to liability — debtor can show reason to doubt that the assessed tax liability is correct Doubt as to collectibility — debtor can show that the debt is likely uncollectable in full by the IRS under any circumstances Effective tax administration — debtor does not contest liability or collectibility, but can demonstrate extenuating or special circumstances that the collection of the debt would "create an economic hardship or would be unfair and inequitable." This OIC program is available for any taxpayer, but is primarily used by individuals who are elderly, disabled, or have special extenuating circumstances. Doubt as to liability Taxpayers who file an offer based on a theory as to doubt as to liability (DATL) will need to establish that they have not otherwise had an opportunity to dispute a tax liability. If the IRS can show that the taxpayer received the proper notices of assessment and failed to act on them, or otherwise contested the tax in the context of an audit, the taxpayer will not be able to seek this sort of relief. An OIC based solely on the basis of DATL does not require the submission of financial information. Doubt as to collectibility Doubt as to collectibility (DATC) means that the taxpayer will never be able to fully pay the tax bill. The IRS will consider a settlement based on the following formula: Settlement amount = (monthly disposable income x a number of months) + the net realizable equity in the taxpayer's assets. Disposable income is monthly income minus allowable monthly expenses. The IRS will not allow all expenses the taxpayer may actually have. Common disallowed expenses are college-tuition payments for a