The reduction depends on your specific financial situation, but eligible taxpayers often see dramatic results. Through an Offer in Compromise, you might qualify for 90% or even 100% debt forgiveness if you can demonstrate that paying the full amount would create financial hardship. The IRS considers your income, expenses, assets, and ability to pay over time. If your monthly disposable income is minimal and you have few valuable assets, you could settle for pennies on the dollar. However, the IRS scrutinizes these applications carefully, which is why professional representation significantly improves your chances of approval.