Quick Sale Value (QSV)
Definition
Quick Sale Value is the IRS's estimate of what an asset would realistically sell for in a forced or expedited sale, typically calculated as 80% of Fair Market Value for most assets.
Why This Matters for Tax Relief
QSV is a critical input in the RCP formula for Offer in Compromise evaluations. The IRS does not accept Fair Market Value for assets because a forced liquidation would yield less than an orderly market sale. The standard discount is 20%, resulting in QSV = FMV × 80%. For real estate, the IRS uses the county assessor's value, Zillow estimates, or recent comparable sales to establish FMV before applying the QSV discount. For vehicles, the IRS uses private party values from Kelly Blue Book or NADA. For bank accounts and retirement accounts, the full balance is typically used without a QSV discount (though early withdrawal penalties and taxes are factored into retirement account valuations). Correctly establishing — and documenting — FMV is one of the most important parts of a successful OIC submission. Overvalued assets inflate RCP and result in rejection.
2026 Update
No changes to QSV methodology under OBBBA. However, the 2026 real estate market has affected FMV calculations significantly in many markets. Taxpayers with real estate assets should obtain a current appraisal or comparative market analysis when preparing Form 433-A (OIC) in 2026.
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Related Terms
RCP (Reasonable Collection Potential)
Reasonable Collection Potential is the mathematical floor the IRS uses to evaluate an Offer in Compromise — the total amount the government believes it can collect from a taxpayer before the Collection Statute expires.
Offer in Compromise (OIC)
An Offer in Compromise is a formal agreement between a taxpayer and the IRS to settle a tax debt for less than the full amount owed, accepted when collection in full would create economic hardship or the amount offered represents the most the IRS can reasonably expect to collect.
Installment Agreement (IA)
An installment agreement is a formal payment plan with the IRS that allows a taxpayer to pay a tax debt in monthly installments over a period of time rather than in a single lump sum.
Penalty Abatement
Penalty abatement is the reduction or elimination of IRS penalties assessed on a tax account, available through First-Time Penalty Abatement, Reasonable Cause, or Statutory Exceptions.