En esta noticia
The Internal Revenue Service (IRS) suspends its investigations and seizure actions against taxpayers who file an Offer in Compromise (OIC). This official process allows a tax debt to be settled for less than the total amount owed and halts collection efforts throughout the entire evaluation period.
The IRS confirmed the details in its tax notice Tax Tip 2026-40, published on May 14, 2026. The agency evaluates each applicant’s income, expenses, asset value, and ability to pay before issuing a decision.
What is the process that suspends IRS seizures?
The Offer in Compromise is a formal agreement between the taxpayer and the IRS that settles a tax debt for less than the original amount. Upon receiving the application, the agency suspends new bank levies and wage garnishments while it reviews the case.
The IRS is not required to lift levies already in place before the OIC is filed and may continue recording lien notices on properties during the process. That is why specialists recommend starting the process before the tax agency activates collection measures.
Costs and requirements to apply
- Application fee: $205 (waived for low-income taxpayers)
- Initial payment: required when submitting the offer (also waived in low-income cases)
- Form: Form 656-B, Offer in Compromise
- Eligibility tool: Pre-Qualifier Tool, available on the IRS official website
How do IRS levies affect those who complete this process?
Those who file an OIC gain legal protection from the tax agency: during the review —which can last up to two years— the IRS cannot initiate new levies for the debt included in the application. If it does not issue a decision within that time, the offer is automatically accepted.
The IRS warned about so-called OIC mills —included in its list of the 12 most dangerous tax scams of 2026—, which charge high fees and promise results without any guarantee. To verify eligibility at no cost, the agency offers the Pre-Qualifier Tool on its official website.