Tax (IRS) · free tool

IRS Offer in Compromise Estimator

What the IRS might accept to settle a back-tax balance. It’s free, runs in your browser, and stores nothing you enter.

Total tax debt

Equity in assets

Monthly income

Monthly expenses

IRS Offer in Compromise estimate

$9,800

Estimated minimum offer to settle $48,000 of tax debt.

Monthly disposable income$300

Future income value (×12)$3,600

Equity in assets$6,200

Estimated minimum offer$9,800

This is an illustrative estimate for general informational purposes only. It is not legal, tax, or financial advice, it does not create an attorney–client relationship, and it is not a quote, promise, prediction, or guarantee of any benefit, amount, eligibility, deadline, or outcome. Figures are based on published government sources as of the date shown and change over time; results may not reflect current law or the facts of your situation. Do not rely on this tool — consult a licensed attorney before taking or refraining from any action.

Key figures behind this estimate

Published government figures used in the calculation, with their effective date and source.

Failure-to-File penalty

As of 2026 · IRS — Failure to File Penalty (5%/mo, max 25%; reduced by FTP in any month both apply)

Failure-to-Pay penalty

As of 2026 · IRS — Failure to Pay Penalty (0.5%/mo, 0.25% while an installment agreement is in effect, max 25%)

0.5%

Minimum FTF penalty (returns required to be filed in 2026)

As of 2026 · IRS — Failure to File Penalty minimum for returns over 60 days late

$525

Underpayment interest rate — Q2 2026 (individuals)

As of 2026 · IRS Rev. Rul. 2025-22 — interest rates, quarter beginning April 1, 2026 (federal short-term rate + 3%)

Streamlined IA threshold

As of 2026 · IRS — Online payment agreement / long-term plans (individuals owing $50,000 or less in combined tax, penalties, interest may qualify for a long-term streamlined plan)

50,000

Maximum streamlined term

As of 2026 · IRS — streamlined installment agreements are generally payable over up to 72 months (or the collection statute, whichever is shorter)

Frequently asked questions

What does the IRS Offer in Compromise Estimator estimate?

What the IRS might accept to settle a back-tax balance. It runs entirely in your browser and stores nothing you enter.

Are the figures current?

Yes. The estimate uses published government figures, each dated on this page (as of 2026) with its source.

Is this calculator legal advice?

No. It is an informational estimate from published data and does not create an attorney–client relationship. Confirm specifics with a licensed attorney.

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