Settle Your IRS Debt: Use Our Offer in Compromise Calculator to Estimate Your Eligibility
If you’re struggling with IRS debt and wondering whether you can settle for less than you owe, the Offer in Compromise calculator can help you get clear answers—fast. This free tool estimates the minimum amount the IRS may accept based on your financial situation, not the amount you owe.
What Is an Offer in Compromise?
An Offer in Compromise (OIC) is a tax relief program that allows qualified taxpayers to settle their IRS debt for less than the full amount. It’s not a loophole—it’s a legitimate solution for people who cannot afford to pay their full tax bill due to hardship, loss of income, or limited assets.
The IRS looks at one thing: Reasonable Collection Potential (RCP). This formula considers your income, expenses, and assets—not just your tax balance. If the IRS determines it’s unlikely they can collect the full debt within the collection window, they may agree to settle.
How Our Offer in Compromise Calculator Works
Our calculator uses the same formula the IRS does to estimate your offer:
(Monthly Disposable Income × 12) + Net Realizable Asset Equity = Minimum Offer Amount
With just a few inputs—monthly income, basic living expenses, and asset values—you’ll instantly see an estimated settlement offer. The tool also shows potential savings compared to what you owe.
You’ll find out:
- Whether you might qualify for an Offer in Compromise
- How much the IRS may accept
- What kind of financial information you’ll need to submit
Why Use an OIC Calculator Before You Apply?
Filing an OIC without understanding the requirements can lead to:
- Automatic rejection
- Loss of fees
- Delays in tax resolution
Our Offer in Compromise calculator helps you avoid those mistakes. It gives you a reality check before you spend time and money preparing forms. It’s also a great first step before speaking with a tax resolution expert.
Common Myths About Offers in Compromise
- “The IRS never settles.”
False. The IRS accepts thousands of OICs each year for people who qualify. - “You have to be broke to get approved.”
Not necessarily. The key is showing that full payment would cause undue hardship. - “I can apply without any help.”
While it’s possible, professional guidance can improve your chances of approval and avoid costly errors.
Ready to Find Out if You Qualify?
Use our free Offer in Compromise calculator to get your estimate in minutes. Then, if you’d like help preparing your IRS forms or negotiating directly, Back Tax Rescue is here to guide you every step of the way.