What is Offer in compromise?
By Haresh Ratnagrahi, Founder, HiPrep (CPA, FCA, CMA (US), CISA, CRISC)
Definition
An agreement in which the IRS accepts less than the full amount owed to settle a tax debt, if the taxpayer qualifies.
Where Offer in compromise matters
Enrolled Agent (EA): The fastest route to practising US tax. 3 Exam parts (SEE); 3.5 hrs Per part: 100 MCQs; 105 Passing score (40–130 scale); 2 yrs To pass all three parts. Parts: Part 1 Individuals; Part 2 Businesses; Part 3 Representation, Practices and Procedures.
Related terms explained
Installment agreement: A payment plan that lets a taxpayer pay a tax debt over time.
Enrolled Agent: A US tax professional licensed by the IRS with unlimited rights to represent taxpayers before the IRS. You earn it by passing the SEE and a suitability check. No degree is needed.
How HiPrep teaches it
In HiPrep, Offer in compromise is taught concept-first and then practised in a Prometric-style simulator. Every answer is built step by step so you see how a result is reached, explanations are available in English, Hindi, Tamil, Telugu and Kannada, and a mentor is behind the platform for doubts. Start with the free diagnostic to see where Offer in compromise sits in your plan.