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Calculating Your Offer Amount: The IRS's Formula
Demystify the IRS Offer in Compromise process! Learn the eligibility requirements and discover how to go about calculating your offer amount.
Frequently Asked Questions
Can anyone apply for an Offer in Compromise?
No, you must meet specific eligibility criteria to qualify for an OIC.
What happens after I submit my Offer in Compromise?
The IRS will review your application and may request additional information. If approved, you can pay the offer amount as agreed upon.
Can I negotiate my offer amount?
While the IRS provides a formula, you can negotiate your offer with the IRS if you have compelling reasons.
How long does the OIC process take?
It can take several months to over a year for the IRS to review and make a decision on your OIC.
What if my OIC is rejected?
If your OIC is rejected, you have the right to appeal the decision within 30 days.
This article was reviewed for legal accuracy by Parham Khorsandi, Esq., founding attorney at Victory Tax Lawyers, LLP and a licensed member of the California State Bar (Bar No. 266658), with a nationwide IRS tax-relief practice.
Last reviewed: June 2026 · Meet our attorneys →
Attorney Advertising. Prior results do not guarantee a similar outcome. This page is for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. For advice about your specific situation, please schedule a consultation.
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