An IRS offer in compromise costs $205 to apply, plus a first payment
To ask the IRS to settle your tax debt for less, you file an offer in compromise. The application fee is $205. You also send a first payment: 20 percent of your offer if you will pay in a lump sum, or your first monthly payment if you will pay over time. Low income filers who qualify pay neither.
Offer in compromise costs
| Application fee | $205 (non-refundable) |
|---|---|
| Lump sum offer: initial payment | 20% of the offer amount |
| Periodic payment offer: initial payment | First proposed monthly payment |
| Low income certification | No fee and no initial payment |
| $5,000 lump sum offer, due with application | $1,205 |
|---|---|
| $10,000 lump sum offer, due with application | $2,205 |
The fee and first payment are generally not refunded, even if the offer is rejected. The payments are applied to your tax debt. Sources: IRS, Offer in compromise; IRS, Topic no. 204, Offers in compromise.
What this price covers
A lump sum offer is paid in 5 or fewer payments within 5 months of acceptance. A periodic payment offer is paid in 6 or more monthly payments within 24 months.
What changes your price
- Offer size. A lump sum offer needs 20 percent up front.
- Payment type. A periodic offer needs only the first monthly payment.
- Income. Low income filers pay nothing up front.
Ways to pay less
- Check if you qualify for low income certification before paying the $205.
- Use the IRS pre-qualifier tool before applying.
How we got these numbers
Every fee on this page comes from the IRS website or an IRS form. Where we show a total, we only add up the IRS's own fees so you can see the full amount in one place. We do not add our own guesses, and tax preparer or lawyer fees are not included. Fees can change, so check irs.gov before you pay. We last checked on September 26, 2026.
Common questions
How much is an offer in compromise?
$205 plus an initial payment.
Is the fee refunded if rejected?
Generally no. It is applied to your tax debt.
Who pays nothing up front?
Filers who meet the low income certification rules.