Offer in Compromise

Step 2 — Eligibility Check

Answer honestly — the IRS verifies all of the following before reviewing any OIC.

Are you currently in an open bankruptcy proceeding?

No Yes

Have you filed all required federal tax returns?

Yes No

Are your current year estimated tax payments up to date (if self-employed)?

Yes / Not applicable No

Step 3 — Asset Equity

Enter current balances. The IRS uses 80% of fair market value (Quick Sale Value).

Bank / Savings / Money Market ($)

Non-Retirement Investments ($)

Retirement Accounts — IRA / 401k ($) 10% early withdrawal penalty applied automatically if under age 59½ (see below).

Vehicle Equity — KBB Private Party × 80% − Loan ($) Example: KBB private party value $18,000 × 0.80 = $14,400 − $10,000 loan = $4,400.

Real Estate Equity — Appraised × 80% − Mortgage ($)

Life Insurance Cash Surrender Value ($)

I am under age 59½ (adds 10% early-withdrawal penalty to retirement accounts)

Step 4 — Monthly Gross Income

Enter average monthly amounts. For variable income (gig / seasonal), use a 3-month average.

Net Wages / Salary ($) After payroll taxes (take-home pay).

Net Self-Employment Income ($)

Rental Income ($)

Social Security / Pension / Disability ($)

Alimony / Child Support Received ($)

Other Household Income ($)

Step 5 — Monthly Expenses

Enter actual monthly spending. The IRS caps some categories at their national or local standard — we apply the cap automatically.

ZIP Code

Household Size

Food / Clothing / Personal Care ($) IRS national standard cap applied.

Housing + Utilities ($) IRS local standard cap applied based on your county.

Vehicle Ownership Payment ($) Loan / lease payment. IRS cap: $594/month (1 car).

Vehicle Operating Costs ($) Gas, insurance, repairs. IRS regional cap applied.

Out-of-Pocket Healthcare ($) Prescriptions, copays — not insurance premiums.

Child / Dependent Care ($)

Term Life Insurance Premium ($)

Court-Ordered Payments ($) Child support or alimony paid.

Student Loan Minimum Payment ($)

Past-Due State / Local Taxes ($)

Step 6 — Payment Preference

How would you pay the OIC?

Lump Sum (×12)
Paid within 5 months of acceptance. Lower offer amount.

Periodic Payment (×24)
Paid over 6–24 months. Higher offer amount.

Click Calculate to see your estimated OIC amount. Your results will be locked behind a quick form — we'll email them to you immediately.

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