In fiscal year 2025 the IRS accepted 5,464 of 38,797 offers in compromise, about 14%. Most people who apply are turned down. Applying takes a $205 fee and a first payment, unless you meet the low income rules.
An offer in compromise asks the IRS to take less than you owe. The IRS looks at your income, costs and assets to decide if it can collect more.
Before you apply, the IRS says you must file all required returns, make required estimated payments, and not be in an open bankruptcy. Employers must be current on tax deposits.
A lump sum offer needs 20% of the offer when you apply. A payment offer needs the first payment when you apply, and more payments while the IRS reviews it.
Be careful with anyone who promises your offer will be accepted. For most people, a payment plan is the path that works.
Key facts
- FY2025: 38,797 offers proposed
- FY2025: 5,464 offers accepted, for $98.1 million
- Fee: $205, plus a first payment
- Free first step: the IRS pre-qualifier tool
Next steps
General information, not tax or legal advice. Updated October 27, 2026. Sources are linked.