Tax Debt Settlement Calculator
Compare settlement options: OIC, CNC, payment plans, and more.
Additional Factors
OIC Eligibility - RCP Calculation
Total Debt:$ 50000
Net Equity:$ 15000
Future Income:$ 16800
Total RCP:$ 31800
OIC Eligible:Yes
Min Offer:$ 31800
Potential Savings:$ 18200
Settlement Options Comparison
| Option | Eligible | Amount | Term | Pros | Cons |
|---|---|---|---|---|---|
| Pay Full Debt | Yes | $ 50000 | Immediate | Ends collection, no ongoing costs | May not have funds available |
| Installment Agreement | No | $ 50000 | Up to 72 months | Predictable payments, stops levy | Interest continues, long commitment |
| OIC - Doubt as to Collectibility | Yes | $ 31800 | 5-year compliance required | Settle for $31800 vs $50000 | 5-year monitoring, can be rejected |
| OIC - Doubt as to Liability | No | $ 0 | 5-year compliance | Reduce debt if liability disputed | Must prove liability error |
| OIC - Effective Tax Administration | No | $ 31800 | 5-year compliance | Settlement even if full collectible | Must show exceptional circumstances |
| Currently Not Collectible | No | $ 0 | Until statute expires | No payments, stops collection | Debt remains, statute continues |
| Partial Payment IA | Yes | $ 16800 | Until statute expires | Pay what you can, rest forgiven | Longer term, interest on balance |
Best Settlement Option
Best Option:Partial Payment IA
Amount:$ 16800
Can pay $16800 over statute. Remaining $33200 forgiven.
Recommendation
Partial Payment IA recommended. Monthly payment: $200. Over 84 months: $16800. Remaining debt forgiven at statute.
Settlement Key Points
- OIC: RCP must be less than debt
- RCP = assets + future income
- Future income: disposable x months
- Application fee: $205
- 5-year compliance required
- CNC: no payments, debt remains
- Partial IA: pay until statute
- Statute: 10 years from assessment
- Retirement rarely considered
- Professional help recommended