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Your “reasonable collection potential,” or RCP, is the amount the IRS believes it can collect from you. Both now and in the future and is determined using financial information about you. When determining the RCP, the IRS considers a variety of factors, including your assets, vehicles, bank accounts, real estate, present and future income, regular living expenses, place of residence, and even the age of your vehicle. If the amount you provide isn’t equal to or more than the RCP, the IRS won’t accept your offer in a compromise. Putting math aside, the IRS may accept an offer for the following three reasons: Your tax debt’s existence and amount are the subjects of a legitimate legal challenge. You would suffer financial difficulty if you paid in full, or it would be “unfair and inequitable due to exceptional circumstances.” The IRS is skeptical that it will ever be able to fully recoup its costs from you.