This calculator will calculate if you are eligible for an IRS transaction offer and, if so, the potential amount of the offer. This calculator is for estimation purposes only. Contact ALG Tax Solutions for a customized tax solution. The formula for this case is (disposable income per month x 2) plus the amount of assets available under Form 433-A (OIC)% of the 3D amount that the IRS will accept for a commitment offer when paid in 24 months.
To calculate the amount you can pay with a transaction offer calculator, subtract the value of your total assets from the total debts you owe. For the reasons they know best, the IRS sometimes rejects a request for a commitment offer, even if you completed the form correctly and are eligible. While you can show that you can pay your liability in full, you can still submit a transaction offer and discuss your individual financial situation with the IRS. If you have more assets than your tax balance due, you generally won't qualify for a transaction offer.
A transaction offer is a form of tax relief from the IRS that allows a taxpayer who would otherwise face difficulties if they paid their debt in full, to pay a portion of their debt rather than the full amount they owe. You must continue to make these payments until the IRS notifies you that it has accepted your offer in the commitment request. Now, if your total amount is less than the amount of debt you owe to the IRS, then you qualify for a transaction offer. You don't want to offer the IRS too low an amount, so they take your request seriously, but you don't want to go too high either, or you could be paying the full amount of your debt.
Simply put, a transaction offer is accepted when the IRS sees that there is no other way to obtain the money owed by the taxpayer in a single full payment. Successfully negotiating a fair compromise offer can make the difference between economic freedom and a life of financial hardship. However, these free commitment offer calculators are often not accurate and, as such, you should use a more reliable and accurate commitment offer calculator, such as the IRS. The commitment offer program has an acceptance rate of 40.03%, so you have a good chance of being eligible for a commitment offer yourself.