Installment Agreements vs Offer in Compromise: What’s the Difference?

If you can’t pay your full IRS debt, two options often come up: Installment Agreements (IAs) and Offers in Compromise (OICs). But how do you know which one is right for you?

Installment Agreement: The Basics

• You agree to pay the full debt over time

• Monthly payments are based on your budget or a fixed amount

• Easier to qualify for, especially under $50K

• No financial disclosure needed (for streamlined)

Offer in Compromise: The Basics

• You offer to settle your debt for less than what you owe

• IRS uses a strict formula based on income, assets, and expenses

• Takes months to process

• Only approved if IRS believes you can’t pay in full

Which Is Right for You?

• You can afford monthly payments

  Your best option is: Installment Agreement

• You have limited income/assets

  Your best option is: Offer in Compromise

• You want faster resolution

  Your best option is: Installment Agreement (OIC takes longer)

• You owe $10K–$49K

  Your best option is: Streamlined Installment Agreement

• You owe $50K+ with hardship

  Your best option is: Offer in Compromise or Partial Pay Installment Agreement

Call to Action
Not sure which route to take? Book a Resolution Match Call and we’ll walk you through the pros and cons for your unique situation.