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Can I settle my tax debt for a small part of what I owe?

Updated October 8, 20262 sourcesTaxTruce teamFact checked
The short answer

Only if the IRS agrees through an offer in compromise, and most people don't get one. The IRS accepted about 14% of offers in fiscal year 2025. Be wary of anyone who promises a number up front. The IRS Dirty Dozen list warns about "OIC mills" that overpromise.

Results depend on your situation. Not every case qualifies.

Words to know

Offer in compromise (OIC)
A deal where the IRS agrees to take less than the full amount you owe. It costs $205 to apply, plus a first payment.

Run the numbers with our free tax tools, like the penalty and payment plan math.

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Free to use. Not the IRS or any government agency. Results depend on your situation. Not every case qualifies.