Reasonable Collection Potential (RCP)

Full Definition

Reasonable Collection Potential (RCP) is the amount the IRS believes it can collect from a taxpayer through any available means. RCP is calculated by adding the realizable value of assets (what the IRS could get if they seized and sold your property) plus future income (your monthly disposable income multiplied by a factor based on payment terms). Understanding your RCP is crucial because the IRS typically will not accept an OIC for less than your RCP.