IRS Offer in Compromise Calculator
Enter the Form 433-A (OIC) building blocks to estimate reasonable collection potential. This is a planning screen, not an IRS acceptance decision.
Eligibility comes before the offer amount
You generally must file all required returns, make required current-year estimated payments, receive a bill for at least one included debt, stay out of open bankruptcy, and keep current federal tax deposits if you have employees.
Most applications require a $205 fee plus either a 20% lump-sum payment or the first periodic payment. Qualifying individuals and sole proprietors can use the Form 656 low-income certification to waive payments and the fee while the offer is considered.
Frequently asked questions
Does this calculator guarantee IRS acceptance?
No. It reproduces the basic 2026 Form 433-A (OIC) worksheet structure, but the IRS verifies assets, allowable expenses, income, collection time, compliance, and special circumstances.
What is the IRS offer in compromise application fee?
Form 656-B dated April 2026 lists a $205 application fee, waived for a qualifying individual who checks the low-income certification.
What is the difference between lump-sum and periodic payment offers?
A lump-sum cash offer uses the 12-month income multiplier and is paid in 5 or fewer payments within 5 months; a periodic offer uses 24 months and is paid over 6 to 24 months.
Sources
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