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

Bank accounts and money on hand

Stocks, Mutual Funds, IRA, and 401k accounts

Cash-out Value of Whole Life Insurance

How much your house would sell for today, not including mortgages.

Personal property, including vehicles, jewelry, and everything in your house

Home mortgage, car loans, and loan secured with an asset of value

Your Income and Expenses

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

Food, clothing, housing utilities, transportation costs, health insurance and heath care cost, child care, alimony or child support payments you make, life insurance, income tax and loan payments for secured debt.

Tax Debt

Your Offer Amount

Net Personal Assets

Income minus Expenses

The IRS assumes you can pay future income towards your tax bill

Next Steps in an Offer in Compromise

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 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.

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