Offer in Compromise Estimator
ANA›Life Services Authority›National Calculator Authority›Offer in Compromise Estimator
.calc-container { max-width: 640px; margin: 2rem 0; padding: 1.5rem; background: #fff; border: 1px solid #ddd; border-radius: 8px; box-shadow: 0 1px 3px rgba(0,0,0,0.06); font-family: system-ui, -apple-system, sans-serif; } .calc-container h3 { font-family: Georgia, serif; font-size: 1.15rem; color: #1a1a1a; margin-bottom: 1rem; padding-bottom: 0.5rem; border-bottom: 2px solid var(--ac, #3d5a80); } .calc-row { display: flex; align-items: center; gap: 0.75rem; margin-bottom: 0.75rem; flex-wrap: wrap; } .calc-row label { min-width: 160px; font-size: 0.9rem; color: #333; font-weight: 500; } .calc-row input[type="number"], .calc-row select { flex: 1; min-width: 120px; max-width: 200px; padding: 0.5rem 0.6rem; border: 1px solid #ccc; border-radius: 4px; font-size: 0.9rem; font-family: system-ui, sans-serif; color: #1a1a1a; background: #fafaf8; } .calc-row input:focus, .calc-row select:focus { outline: none; border-color: var(--ac, #3d5a80); box-shadow: 0 0 0 2px rgba(26,74,138,0.12); } .calc-row .unit { font-size: 0.82rem; color: #888; min-width: 30px; } .calc-btn { display: inline-block; margin-top: 0.5rem; padding: 0.55rem 1.5rem; background: var(--ac, #3d5a80); color: #fff; border: none; border-radius: 4px; font-size: 0.9rem; font-weight: 600; cursor: pointer; font-family: system-ui, sans-serif; } .calc-btn:hover { opacity: 0.9; } .calc-result { margin-top: 1.25rem; padding: 1rem 1.25rem; background: #f0f6fc; border-left: 3px solid var(--ac, #3d5a80); border-radius: 0 6px 6px 0; display: none; } .calc-result.visible { display: block; } .calc-result-label { font-size: 0.78rem; text-transform: uppercase; letter-spacing: 0.06em; color: #666; margin-bottom: 0.25rem; } .calc-result-value { font-size: 1.6rem; font-weight: 700; color: var(--ac, #3d5a80); } .calc-result-detail { font-size: 0.85rem; color: #555; margin-top: 0.5rem; line-height: 1.5; } .calc-note { margin-top: 1rem; font-size: 0.8rem; color: #888; font-style: italic; } .calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 0.75rem; margin-top: 0.75rem; } .calc-grid-item { padding: 0.6rem 0.8rem; background: #f8f9fa; border-radius: 4px; border: 1px solid #eee; } .calc-grid-item .label { font-size: 0.75rem; color: #888; text-transform: uppercase; letter-spacing: 0.04em; } .calc-grid-item .value { font-size: 1.1rem; font-weight: 600; color: #1a1a1a; } @media (max-width: 720px) { .calc-row { flex-direction: column; align-items: flex-start; gap: 0.3rem; } .calc-row label { min-width: auto; } .calc-row input[type="number"], .calc-row select { max-width: 100%; width: 100%; } .calc-grid { grid-template-columns: 1fr; } } .calc-chart { margin: 1rem 0; text-align: center; } .calc-chart svg { max-width: 100%; height: auto; } .calc-chart-legend { display: flex; flex-wrap: wrap; justify-content: center; gap: 0.6rem 1.2rem; margin-top: 0.6rem; font-size: 0.8rem; color: #555; } .calc-chart-legend span { display: inline-flex; align-items: center; gap: 0.3rem; } .calc-chart-legend i { display: inline-block; width: 10px; height: 10px; border-radius: 2px; font-style: normal; } .calc-related { max-width: 640px; margin: 2rem 0 1rem; padding: 1.25rem 1.5rem; background: #f8f9fa; border: 1px solid #e8e8e8; border-radius: 8px; } .calc-related h3 { font-family: Georgia, serif; font-size: 1rem; color: #1a1a1a; margin: 0 0 0.75rem; padding-bottom: 0.4rem; border-bottom: 2px solid var(--ac, #3d5a80); } .calc-related-list { list-style: none; padding: 0; margin: 0 0 0.75rem; display: grid; grid-template-columns: 1fr 1fr; gap: 0.4rem 1.5rem; } .calc-related-list li a { font-size: 0.88rem; color: var(--ac, #3d5a80); text-decoration: none; } .calc-related-list li a:hover { text-decoration: underline; } .calc-browse-all { margin: 0.5rem 0 0; font-size: 0.9rem; font-weight: 600; } .calc-browse-all a { color: var(--ac, #3d5a80); text-decoration: none; } .calc-browse-all a:hover { text-decoration: underline; } @media (max-width: 720px) { .calc-related-list { grid-template-columns: 1fr; } }
Offer in Compromise Estimator
Estimate the minimum offer amount the IRS may accept under the Doubt as to Collectibility (DATC) standard, based on your Reasonable Collection Potential (RCP).
Assets (Equity)
Cash, Savings & Checking Accounts ($)
Investments & Retirement Accounts ($) (IRS uses 80% of retirement account value)
Primary Home Fair Market Value ($)
Primary Home Mortgage Balance ($)
Vehicle(s) Fair Market Value ($)
Vehicle Loan Balance ($)
Other Assets (business equipment, real estate, etc.) ($)
Monthly Income
Total Monthly Gross Income ($) (wages, self-employment, rental, pension, Social Security, etc.)
Monthly Allowable Expenses
Food, Clothing & Personal Care ($) (use IRS National Standards or actual, whichever is lower)
Housing & Utilities ($) (use IRS Local Standards or actual, whichever is lower)
Transportation ($) (IRS Local Standards for ownership + operating costs)
Out-of-Pocket Health Care ($)
Other Allowable Expenses ($) (child care, court-ordered payments, term life insurance, etc.)
Payment Terms Offer Payment Type
Lump Sum Cash (paid in 5 or fewer installments within 5 months) Periodic Payment (paid in 6–24 months)
Lump Sum: multiply monthly disposable income × 12 months. Periodic Payment: multiply monthly disposable income × 24 months.
Calculate Estimated Offer
function offCalc() { // --- Inputs --- var cash = parseFloat(document.getElementById('off-cash').value) || 0; var investments = parseFloat(document.getElementById('off-investments').value) || 0; var homeValue = parseFloat(document.getElementById('off-home-value').value) || 0; var homeMortgage = parseFloat(document.getElementById('off-home-mortgage').value) || 0; var vehicleValue = parseFloat(document.getElementById('off-vehicle-value').value) || 0; var vehicleLoan = parseFloat(document.getElementById('off-vehicle-loan').value) || 0; var otherAssets = parseFloat(document.getElementById('off-other-assets').value) || 0;
var grossIncome = parseFloat(document.getElementById('off-gross-income').value) || 0; var foodClothing = parseFloat(document.getElementById('off-food-clothing').value) || 0; var housing = parseFloat(document.getElementById('off-housing').value) || 0; var transportation= parseFloat(document.getElementById('off-transportation').value) || 0; var health = parseFloat(document.getElementById('off-health').value) || 0; var otherExp = parseFloat(document.getElementById('off-other-expenses').value) || 0;
var paymentType = document.getElementById('off-payment-type').value;
// --- Validation --- var errors = []; if (grossIncome homeValue * 1.5) errors.push("Mortgage balance seems unusually high relative to home value."); if (errors.length > 0) { document.getElementById('off-result').innerHTML = 'Please fix the following:' + errors.join('') + '
'; return; }
// --- Asset Equity Calculation --- // IRS uses Quick Sale Value (QSV) = 80% of FMV for most assets var qsvCash = cash; // cash at full value var qsvInvestments = investments * 0.80; // 80% of retirement/investment accounts var qsvHomeEquity = Math.max(0, (homeValue * 0.80) - homeMortgage); var qsvVehicleEquity= Math.max(0, (vehicleValue * 0.80) - vehicleLoan); var qsvOther = otherAssets * 0.80;
var totalAssetEquity = qsvCash + qsvInvestments + qsvHomeEquity + qsvVehicleEquity + qsvOther;
// --- Monthly Disposable Income (MDI) --- var totalAllowableExpenses = foodClothing + housing + transportation + health + otherExp; var mdi = Math.max(0, grossIncome - totalAllowableExpenses);
// --- Future Income Component --- // Lump Sum: MDI × 12; Periodic Payment: MDI × 24 var multiplier = (paymentType === 'lump') ? 12 : 24; var futureIncomeComponent = mdi * multiplier;
// --- Reasonable Collection Potential (RCP) --- var rcp = totalAssetEquity + futureIncomeComponent;
// --- Minimum Offer Amount (IRS rounds up to nearest $1) --- var minOffer = Math.ceil(rcp);
// --- Format currency --- function fmt(n) { return '$' + n.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}); }
// --- Output --- var html = '### Estimated Offer in Compromise Results '; html += ''; html += 'Asset Equity Component (QSV)' + fmt(totalAssetEquity) + ''; html += 'Cash & Savings' + fmt(qsvCash) + ''; html += 'Investments & Retirement (80%)' + fmt(qsvInvestments) + ''; html += 'Home Equity (80% FMV − Mortgage)' + fmt(qsvHomeEquity) + ''; html += 'Vehicle Equity (80% FMV − Loan)' + fmt(qsvVehicleEquity) + ''; html += 'Other Assets (80%)' + fmt(qsvOther) + '';
html += 'Monthly Income & Expenses'; html += 'Gross Monthly Income' + fmt(grossIncome) + ''; html += 'Total Allowable Monthly Expenses(' + fmt(totalAllowableExpenses) + ')'; html += 'Monthly Disposable Income (MDI)' + fmt(mdi) + '';
html += 'Future Income Component' + fmt(futureIncomeComponent) + ''; html += 'MDI × ' + multiplier + ' months (' + (paymentType === 'lump' ? 'Lump Sum' : 'Periodic') + ')' + fmt(futureIncomeComponent) + '';
html += '';
html += ''; html += 'Estimated Minimum Offer (RCP): ' + fmt(minOffer) + '
'; html += 'RCP = Asset Equity + Future Income Component = ' + fmt(totalAssetEquity) + ' + ' + fmt(futureIncomeComponent) + '
'; html += '';
if (minOffer
#### Formula
Reasonable Collection Potential (RCP) = Asset Equity + Future Income Component
-
Asset Equity = Quick Sale Value (QSV) of all assets minus secured liabilities
-
Monthly Disposable Income (MDI) = Gross Monthly Income − Total Allowable Monthly Expenses
-
Future Income Component:
-
Minimum Offer = RCP (rounded up to nearest dollar)
#### Assumptions & References
- Based on IRS Doubt as to Collectibility (DATC) OIC standard — the most common basis for an OIC (IRC § 7122).
- Quick Sale Value (QSV) of 80% reflects the IRS assumption that assets sold quickly yield less than full FMV (IRS Form 656-B, Offer in Compromise Booklet).
- Allowable expenses are limited to IRS National Standards (food, clothing, personal care, out-of-pocket health) and Local Standards (housing, utilities, transportation) — actual expenses are only allowed if lower than the standard, except for housing/utilities where actual may be used if higher with justification.
- Lump Sum multiplier of 12 and Periodic Payment multiplier of 24 are per IRS Form 656 instructions and IRM 5.8.5.
- This is an estimate only and does not constitute tax or legal advice. Consult a licensed tax professional or Enrolled Agent for a formal OIC submission.
- References: IRS Form 656-B (OIC Booklet), IRS Form 433-A (OIC), IRM 5.8, IRC § 7122.
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