Offer in Compromise

The IRS Fresh Start program changed the rules for tax liens, installment agreements, and offers in compromise. Here’s what it actually covers in 2026.

The IRS doesn’t pull your offer amount out of thin air — it uses a formula called reasonable collection potential. Here’s the math, step by step.

Before you pay an application fee, run through the three eligibility tests the IRS actually uses for offers in compromise — and the disqualifiers that stop applications cold.

An offer in compromise lets you settle IRS tax debt for less than you owe — if you qualify. Learn how the program really works and who it fits.