Offer in Compromise Calculator

Calculate Your Eligibility for an IRS Offer in Compromise

If you are unable to pay what you owe the IRS, you may be able to make an offer to pay less. The calculation is based on on your assets and income after expenses. The IRS allows only certain expenses that vary based on where you live. Use this calculator to figure roughly whether you might qualify to reduce your tax debt by submitting an Offer in Compromise to the IRS.

NEW: May 24, 2012 – The IRS reduced the income portion for an Offer in Compromise. This will make qualifying for an Offer in Compromise much easier. If you did not qualify in the past, use this updated calculator to evaluate your options again.

The actual calculations are more complex. Call me for a more detailed and accurate calculation. As an Enrolled Agent and tax resolution specialist, I am qualified to calculate and submit your Offer in Compromise to IRS.

How to use the Offer in Compromise Calculator:

Enter all positive numbers

Skip any unnecessary fields

Enter assets, loans, income, expenses, and amount owed

Click Calculate to see results

If you make changes, click Calculate again to see the new results

Your Assets

Total Available Cash
Bank accounts and money on handRetirement and Investment Accounts
Stocks, Mutual Funds, IRA, and 401k accountsLife Insurance Cash Value
Cash-out Value of Whole Life InsuranceCash Value of Your Home
How much your house would sell for today, not including mortgages.Quick Sale Value of all Personal Property
Personal property, including vehicles, jewelry, and everything in your houseTotal Outstanding Loans
Home mortgage, car loans, and loan secured with an asset of value

Your Income and Expenses

Average Monthly Income
Salary, net business income, rental income, interest and dividends, pensions, alimony, child support and other income you receive.

Monthly Cash Available
Income minus ExpensesFuture Income Portion of your Offer
The IRS assumes you can pay future income towards your tax bill

Your Offer to the IRS could be:

Potential Tax Debt Savings

Next Steps in an Offer in Compromise

If the Offer is Less than your Tax Debt
If the calculator shows that you can save on your tax debt by submitting an Offer in Compromise to the IRS, call me for a free calculation that is more detailed and accurate. We’ll need to discuss and document your assets, income, and expenses. I will analyze your situation and prepare the forms to get you the best chance of having your offer accepted. Unfortunately, most Offers in Compromise are not accepted, so it makes sense to work with a tax resolution specialist to improve your chances of saving on your tax debt.

If the Offer is More than your Tax Debt
If the calculator shows an offer amount greater than your tax debt, call me and we’ll go over the numbers carefully. The actual Offer in Compromise calculation is more complex than this simplified guide, and I can give you detailed recommendations for your tax debt situation in a free consultation.