Instead of making an offer ask what is the minimum amount you can pay without being penalized. Secondly, hire an attorney who can negotiate for you.
This is my opinion and should not be construed as legal advise for your specific case as there are many more facts which you have not provided.
I cannot answer your question because the answer is based upon the financial statement that you will submit with your OIC. If your financial statement shows that you have no assets and you can afford to make no payments, then an offer of $1,000 will be a terrific offer. So the issue is not how much you owe; the issue is how much it looks like the IRS can collect from you. The only way the IRS will take a compromise is if it sees it has no choice, that it has no hopes of collecting more from you if it refuses your offer.
An Offer in Compromise settlement amount is based on your assets and the amount available every month after you have paid your necessary living expenses. The Offer amount is not based on a percentage.
Generally I recommend that you hire a tax attorney to submit an Offer, however, you do not owe a lot and it may not be cost effective.
I offer a service, where for a minimal fee, I go over with you how to file an Offer and then review your paperwork prior to submission. If you would like to discuss this further, please feel free to contact me.
email@example.com Office number: (860) 255-7423 Website: www.cttaxhelp.com. Our reply to your question has not created an attorney-client relationship. It should not be considered legal advice. You should contact an Attorney who can give you legal advice after acquainting themselves with the specifics of your case.