Offer in Compromise: Doubt as to Collectability
Settle Your Tax Debt Based on Inability to Pay
Doubt as to Collectability (DATC) is the most common type of Offer in Compromise. It applies when the IRS determines that your assets and income are insufficient to pay your full tax liability before the Collection Statute Expiration Date (CSED). We calculate your Reasonable Collection Potential and negotiate the lowest acceptable offer amount.
Could You Qualify for DATC OIC?
Most accepted offers are based on inability to pay
Real Results: Client Success Story
"Self-employed contractor with $187K in back taxes after business downturn. Analysis showed monthly disposable income of $200 and minimal equity in assets. RCP calculation justified $12,400 lump-sum offer—accepted by IRS after 8 months."
*Illustrative scenario. Results vary based on individual circumstances including income, assets, and compliance history. Past outcomes do not guarantee future results. IRS acceptance depends on Reasonable Collection Potential analysis.
Do You Qualify? Quick Self-Assessment
DATC OIC may be right for you if:
Check 3 or more? You may qualify for significant debt reduction through DATC. Schedule a free evaluation to calculate your Reasonable Collection Potential.
How DATC OIC Works
Reasonable Collection Potential (RCP)
The IRS calculates what they could realistically collect from you using this formula:
Your offer must exceed your RCP to be considered by the IRS.
Lump Sum vs. Periodic Payment
Two payment options for DATC offers:
- Lump Sum: 20% down with application, balance within 5 months. RCP = Assets + (12 × monthly income)
- Periodic: First payment with application, continue monthly during review. RCP = Assets + (24 × monthly income)
IRS Authority & References
Related Resolution Services
Ready to Settle Your Tax Debt?
Get a free analysis of your DATC eligibility. We'll calculate your Reasonable Collection Potential and estimate the lowest offer the IRS may accept.
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