Free IRS Settlement Calculator
MOST PEOPLE PAY
100% OF WHAT
THE IRS DEMANDS.
They don't have to. Find out what your tax debt could actually settle for — using the same formula the IRS uses to decide what to accept.
Based on IRS Form 433-A Reasonable Collection Potential (RCP) · Takes 2 minutes
1
Your Debt
2
Income
3
Assets
4
Results
Step 1 of 3
YOUR TAX DEBT
Tell us what you owe. Estimates are fine — we're generating a range, not a final number.
How it works: The IRS doesn't care what you owe — they care what they can realistically collect. Larger balances often settle for a smaller percentage of the total.
Step 2 of 3
INCOME & EXPENSES
The IRS subtracts IRS-allowed living expenses from your income to find your "disposable income" — the amount they believe you can pay monthly.
IRS Expense Standards: The IRS caps allowable expenses using National and Local Standards. A licensed EA knows how to maximize these in your favor.
Step 3 of 3
ASSETS & EQUITY
The IRS also considers what they could seize and sell. Be honest here — it directly affects your estimated settlement.
Quick Dissipation: The IRS discounts most assets by 20% for forced-sale value. Retirement accounts get an additional 30% haircut for taxes and early-withdrawal penalties.
🔒 Your Full Breakdown Is Ready
SEE EXACTLY HOW WE GOT THERE
Enter your info to unlock the full calculation — and get a free case review from a licensed Enrolled Agent.
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Your Info Unlocks the Full Calculation
Your Estimated OIC Settlement Range
$4,200–$11,800
You may be able to eliminate up to 78% of your IRS debt
This is an estimate, not a guarantee. Your actual settlement depends on your complete financial picture.
What happens next
A licensed Defender Enrolled Agent will call you within 1 business day to review your full situation — no charge, no commitment. Have a recent IRS notice nearby if you have one. It helps us get to answers faster.
Balance Owed
$25,000
Est. RCP
$7,200
Monthly Disposable
$700/mo
Potential Savings
$17,800
HOW THIS WAS CALCULATED
Monthly Disposable Income × 12
$8,400
Net Asset Equity (Quick Dissipation Applied)
$6,000
Reasonable Collection Potential (RCP)
$14,400
IRS Balance Owed
$25,000
Settlement Range
$4,200 – $11,800
Disclaimer: This estimate is based on a simplified version of the IRS Reasonable Collection Potential (RCP) formula and is for educational purposes only. Actual OIC eligibility depends on full financial documentation, IRS expense standards, compliance history, and IRS reviewer discretion. This is not a guarantee of acceptance or settlement amount. Consult a licensed tax professional before taking any action.
Want Your Exact Number?
This estimate is your starting point. A Defender Enrolled Agent will review your actual financials and tell you exactly what you qualify for — free, no obligation.
"
I owed $58,562. I ignored the notices for two years because I didn't understand what they meant. Defender got me settled for $6,200. I wish I'd called them the day I got the first letter.
Michael T. — TexasOffer in Compromise · $52,362 in IRS debt eliminated