---
title: What Is an Offer in Compromise? 2026 Guide | TaxTruce
url: https://taxtruce.com/answers/what-is-an-offer-in-compromise
updated: 2026-10-29
---

# What is an offer in compromise?

Updated October 8, 20262 sourcesTaxTruce team[Fact checked](/editorial-standards)

The short answer

It is a deal that lets you settle your tax debt for less than the full amount, if the IRS agrees. The IRS looks at your income, expenses and what you own. Most offers are not accepted. In fiscal year 2025, the IRS accepted 5,464 of 38,797.

The IRS usually says no if you could pay in full with a plan or the equity in your assets.

## Sources

1. [IRS: Offer in compromise](https://www.irs.gov/payments/offer-in-compromise)
2. [IRS Data Book: Collections, penalties and appeals (FY2025)](https://www.irs.gov/statistics/collections-activities-penalties-and-appeals)

Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.