An OIC is an agreement that taxpayers can enter into with the IRS when they want to settle their tax debt for less than the full amount they owe. To apply for an OIC, you have to pay an application fee of $205 unless you are considered a low-income individual. In that case, the fee will be waived for you.
To collect unpaid taxes, the IRS is turning to private companies. The growing backlog of debt is proving too much for the agency, which announced this past April that it's turning to four debt collection companies to round up outstanding payments from taxpayers who've been contacted numerous times and still haven't coughed up any cash.
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