Quick answer: The IRS accepts an Offer in Compromise when your “reasonable collection potential” — what it could realistically collect from your income and assets — is less than what you owe. This calculator gives you a simplified instant estimate. It’s educational, not a guarantee; real qualification uses detailed IRS standards.
Could you settle your IRS debt for less? Run the numbers.
How does the IRS actually decide?
The IRS calculates your reasonable collection potential using your monthly disposable income (with allowable expense standards that differ from your real budget) plus the net realizable equity in your assets. Where amateurs lose offers is in those details — expense standards, asset valuations, and timing. Where professionals win them is the same place.
What if the calculator says I don’t qualify?
It doesn’t mean you’re stuck. Installment agreements, penalty abatement, and Currently Not Collectible status routinely save clients thousands even when settlement isn’t on the table. The free call covers all of it.
Want the real answer, not an estimate?
Fifteen free minutes with a licensed Enrolled Agent who files these offers for a living.