Offer in Compromise — Settle Your IRS Debt for Less
An Offer in Compromise lets qualifying taxpayers settle their entire IRS debt for a fraction of what they owe. The key is calculating the right offer amount and submitting a complete application. Incomplete offers are rejected; correctly calculated offers are accepted at a 30–40% rate.
How the IRS Handles This
The IRS reviews your financial situation using Form 433-A (OIC) to calculate your Reasonable Collection Potential. If your offer equals or exceeds your RCP, the IRS will accept it.
DIY Steps to Resolve This
- 1
Use the IRS pre-qualifier tool to check eligibility
- 2
Calculate your Reasonable Collection Potential (RCP)
- 3
Complete Form 656 and Form 433-A (OIC)
- 4
Submit with the $205 application fee and required initial payment
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