Offer in Compromise Eligibility Calculator

See Whether an IRS Tax Settlement Is Realistic for You
An Offer in Compromise is an IRS tax relief program that allows qualifying taxpayers to settle tax debt for less than the full amount owed — but only when the IRS determines the debt cannot be collected in full.

This Offer in Compromise Eligibility Calculator helps screen whether an OIC is realistic based on the same financial factors the IRS uses, including monthly income, living expenses, and assets.

‍Informational only. Results depend on your specific financial facts and IRS rules.
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What This OIC Calculator Does

This tool is designed to screen eligibility — not to promise a tax settlement agreement.

The calculator reviews high-level factors from the IRS Collection Process, including the following:

Monthly income and disposable income
Allowable living expenses
Assets and the taxpayer’s assets
Filing compliance and collection status
Overall ability to resolve tax liabilities

Nothing you enter is sent to the IRS. This is a private planning tool only.

Step 1 of 4

Step 1 — Basic Info

OIC pre-qualification depends heavily on balance size and ability to pay.
Do you currently owe the IRS federal taxes?
Please select an option.
About how much do you owe the IRS?
Please select an option.
Next

Step 2 — Monthly Situation

Is your household income enough to comfortably pay your basic monthly expenses?
Please select at least one option.
Please select an option.
After paying basic living expenses, do you usually have money left over each month?
Please select an option.
BackNext

Step 3 — Assets & Filing

Do you own significant assets (home equity, savings, investments, vehicles worth over $10,000)?
Please select an option.
Have you filed all required federal tax returns?
Please select an option.
BackNext

Step 4 — Bankruptcy

Are you currently in bankruptcy?
Please select an option.
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Not Applicable

This calculator is for people who owe federal IRS taxes.
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This is an estimate only and not legal or tax advice.

Not Eligible Yet

All required tax returns must be filed before an Offer in Compromise can be considered.
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This is an estimate only and not legal or tax advice.

Not Eligible During Bankruptcy

The IRS cannot consider an Offer in Compromise while a bankruptcy is active.
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This is an estimate only and not legal or tax advice.

Your IRS Offer in Compromise Eligibility

Reviewed by: William McLee
Risk tier, score, and confidence are based on your scoring rules.

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— — Score: — “Not sure” answers: —
💸 An accepted Offer in Compromise may allow settlement for less than the full balance owed. Your results suggest potential eligibility.
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What You Entered

Timing and preparation determine whether an Offer in Compromise is reviewed or rejected.

This checklist explains when it makes sense to file, what must be completed first, and how to avoid common mistakes that trigger automatic denial.
Download Emergency Checklist
If any of this is inaccurate, go back and update your answers for a more reliable estimate.
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This is an estimate only and not legal or tax advice.
Important Disclosure
This calculator provides general informational estimates only and does not constitute tax, legal, or financial advice. Actual IRS decisions depend on documentation, compliance history, current rules, and your specific financial situation.
Take the Next Step
Use this calculator to understand your position before agreeing to any IRS action or payment arrangement. If results indicate risk, reviewing options early may help preserve flexibility.

What an Offer in Compromise Is — and Is Not

An Offer in Compromise may be appropriate when the IRS determines it cannot reasonably collect the full tax debt due to limited disposable income and insufficient asset equity, and when other collection options are not practical. However, an OIC is not approved based on hardship alone, is never guaranteed, is not automatically available because a balance is large, and is not the best solution for every taxpayer—making proper screening essential.

However, an OIC:

  • Is not approved based on hardship alone
  • Is never guaranteed
  • Is not automatically available because a balance is large
  • Is not the best solution for every taxpayer

This makes proper OIC screening essential.

Why Many Offers in Compromise Are Rejected

Most rejected OIC applications fail for avoidable reasons, including the following:

The IRS determines that a payment plan is affordable
Assets or income are understated
Required IRS forms are incomplete or inaccurate
The taxpayer is not filing-compliant
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Possible Results You May See

How to Interpret Offer in Compromise Viability

This generally means:

Limited disposable monthly income
Minimal accessible asset equity
Full balance is unlikely to be collectible
Other resolution options may apply
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What Happens After You See Your Result

This calculator provides screening guidance, not a final IRS decision.

Next steps may include the following:

Reviewing IRS records
Confirming filing compliance
Verifying income, expenses, and assets
Preparing required IRS forms such as Form 656, Form 433-A, or Form 433-B (the IRS collection information statement)
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Use the Calculator — Then Act

If your results suggest OIC eligibility, acting before submitting Form 656 or IRS financial disclosures is critical. A rejected offer in compromise can resume enforcement immediately — understanding your position early helps you avoid applying at the wrong time or with incomplete documentation.

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Frequently Asked Questions (FAQs)

What does the offer-in-compromise eligibility calculator actually do?
Is this calculator a final IRS determination?
Does owing a large amount of tax debt automatically qualify me for an offer in compromise?
Do I need to be current on tax filings before applying for an offer in compromise?
What IRS forms are typically required for an offer in compromise?
What happens if my offer in compromise is rejected?

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