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Below you’ll find the new fresh start initiative by the Internal Revenue Service for the offer in compromise program
The Internal Revenue Service today announced several additional steps it is taking this tax season to help people having difficulties meeting their tax obligations because of unemployment or other financial problems.
The steps an expansion of efforts that began more than a year ago ?? include additional flexibility on offers in compromise for struggling taxpayers, a series of Saturday ?open houses? offering taxpayers extra opportunities to work out tax problems face to face with the IRS, special outreach with partner groups to unemployed taxpayers and the availability of more information on a special section of the IRS Web site.
Times are tough for many people, and the IRS wants to do everything it can to help people who have lost their job or face financial strain,? IRS Commissioner Doug Shulman said. We continue to make adjustments to key programs and expand ways for people to get help. We?re doing everything we can to help ease the burden on struggling taxpayers.?
New Flexibility for Offers in Compromise
For some taxpayers, an offer in compromise ?? an agreement between a taxpayer and the IRS that settles the taxpayers debt for less than the full amount owed ?? continues to be a viable option. IRS employees will now have additional flexibility when considering offers in compromise from taxpayers facing economic troubles, including the recently unemployed.
Specifically, IRS employees will be permitted to consider a taxpayers current income and potential for future income when negotiating an offer in compromise. Normally, the standard practice is to judge an offer amount on a taxpayers earnings in prior years. This new step provides greater flexibility when considering offers in compromise from the unemployed. The IRS may also require that a taxpayer entering into such an offer in compromise agree to pay more if the taxpayers financial situation improves significantly.