Short answer
Under 26 U.S.C. § 7122 the IRS can accept less than the full balance. IRS Data Book 2025, Table 4-1, reports 38,797 offers received and 5,464 accepted in fiscal year 2025, about one accepted for every seven received. Applicants must file all required returns and pay a $205 fee unless low-income.
The numbers, not the ads
| Fiscal year | Offers received | Offers accepted | Accepted ÷ received |
|---|---|---|---|
| 2024 | 33,591 | 7,199 | ≈ 21% |
| 2025 | 38,797 | 5,464 | ≈ 14% |
The 5,464 offers accepted in fiscal 2025 totaled about $98.1 million. The IRS weighs income, expenses and asset equity, and generally will not accept an offer if the debt can be paid in full through a payment plan and/or equity in assets. The size of the debt alone does not decide it.
How an IRS offer works
- Eligibility: all returns filed, current-year estimates paid, not in an open bankruptcy, employers current on deposits for this quarter and the last two.
- Choose a payment option: lump sum (20% with the application, the rest in five or fewer payments after acceptance) or periodic (monthly payments throughout review).
- During review: most collection is suspended, the collection period is extended, a lien may be filed, and payments on an existing plan for the same balance are not required.
- Decision: if no decision within two years, the offer is treated as accepted. If rejected, it can be appealed to the IRS Independent Office of Appeals; the fee is not refunded.
- After acceptance: the offer terms (Form 656, Section 7) must be kept, and liens are released only after the offer is paid.
IRS offer vs. Ohio offer
| Topic | IRS | Ohio Attorney General |
|---|---|---|
| Who can apply | Taxpayers meeting the eligibility rules | Only debts certified to the Attorney General |
| Fee | $205 (waived for low income) | No fee stated |
| Payment if accepted | Lump sum or periodic | Lump sum within 60 days, generally no installments |
| Appeal | Independent Office of Appeals | None — decisions are final |
| After acceptance | Keep Form 656 terms | Five years of full Ohio filing and payment compliance |
An offer also suspends the 10-year collection clock while it is pending, which matters when the debt is old; the trade-off is summarised on the main Canton tax-help page. If a monthly plan fits the budget, installment agreements are usually the simpler path, and when nothing fits, Currently Not Collectible status may.
Wondering if an offer is even worth the fee? A licensed professional can run the numbers before anyone pays $205.
Call (330) 457-6198Questions people in Canton ask
What percentage of offers in compromise does the IRS accept?
The IRS Data Book 2025 (Table 4-1) reports 38,797 offers received and 5,464 accepted in fiscal year 2025, about 14%. In fiscal year 2024 it was 33,591 received and 7,199 accepted. Offers accepted in a year are not all from that year’s filings, so this is a ratio, not an exact approval rate.
What do I need before applying?
All required returns filed, required estimated payments made for the current year, no open bankruptcy, and — for employers — federal tax deposits made for the current and prior two quarters. The IRS Pre-Qualifier tool checks this first.
What does it cost to apply?
A $205 application fee plus a first payment: 20% of the offer for a lump-sum offer, or the first monthly payment for a periodic offer. Individuals who meet the low-income test skip the fee and the payments during review.
Does the IRS stop collecting while my offer is reviewed?
Most collection activity is suspended and no levy is allowed while an offer is pending (26 U.S.C. § 6331(k)). But the IRS extends the collection period and may file a tax lien. If the IRS does not decide within two years, the offer is treated as accepted.
Can I settle Ohio tax debt the same way?
Ohio has its own program run by the Attorney General, only for debts already certified for collection. There is no minimum percentage, all delinquent returns must be filed, rejections are final, and an accepted offer is generally paid in a lump sum within 60 days.
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Sources
Every fact on this page comes from these official pages, read on the date shown. Tax-law facts are re-checked at least every 90 days and local office facts every 180 days.
- 26 U.S.C. § 7122 Compromises — Cornell LII. Accessed October 10, 2026.
- Offer in compromise — IRS. Accessed October 10, 2026.
- IRS Data Book, 2025 (Publication 55-B), Table 4-1 Delinquent Collection Activities — IRS. Accessed October 10, 2026.
- 26 U.S.C. § 6331 Levy and distraint — Cornell LII. Accessed October 10, 2026.
- Collections — Offer-in-Compromise FAQs — Ohio Attorney General. Accessed October 10, 2026.