New Offer in Compromise Program – Get tax relief in Ft.Lauderdale, Miami, West Palm Beach 954-492-0088
The local Miami, Ft.Lauderdale and West Palm Beach IRS offices are soon to be flooded with Offer in Compromises,Tax Debt Settlements
The IRS Agents have no idea what they are in for. The flood gates have been released.
A more flexible program is now in place and it is called the Fresh Start Program, I think they developed the idea after our name, Fresh Start Tax LLC.
By the way we are former IRS Agents and Managers who know this program inside and out. We taught this program at the IRS.
With the new policy in place, thousands upon thousands of taxpayers will be looking to settle their IRS tax debt.
In the past IRS received about 56,000 offers a year with the acceptance rate about 30%
I would expect that number to triple and probably have a 50% acceptance rate.
Finally, pennies on a dollar is now possible for taxpayers .
In general, an Offer in Compromise is an legal agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or a through payment agreement.
The New IRS Policy number IR-2012-53 which was introduced on May 21, 2012.
The Internal Revenue Service announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the past. This remains to be seen depending on the case load. The normal time for an offer once in the system was between 6-12 if you were lucky.
This announcement focuses on the financial analysis used to determine which taxpayers qualify for an OIC. This announcement also enables some taxpayers to resolve their tax problems in as little as two years compared to four or five years in the past.
In certain circumstances, the changes announced today include:
1.Revising the calculation for the taxpayer’s future income.
2. Allowing taxpayers to repay their student loans.
3. Allowing taxpayers to pay state and local delinquent taxes.
4. Expanding the Allowable Living Expense allowance category and amount.
The IRS recognizes that many taxpayers are still struggling to pay their bills so the IRS Department of Treasury has been working to put in place common-sense changes to the OIC program to more closely reflect real-world situations.
Changes to the Offer in Compromise Program:
When the IRS calculates a taxpayer’s reasonable collection potential or RCP, it will now look at only one year of future income for offers paid in five or fewer months, down from four years, and two years of future income for offers paid in six to 24 months, down from five years.
All offers must be fully paid within 24 months of the date the offer is accepted. The Form 656-B, Offer in Compromise Booklet, and Form 656, Offer in Compromise, has been revised to reflect the changes.You can download the forms on our website.
Other changes to the program include narrowed parameters and clarification of when a dissipated asset will be included in the calculation of reasonable collection potential. In addition, equity in income producing assets generally will not be included in the calculation of reasonable collection potential for on-going businesses.
Allowable Living Expenses allowed by the IRS for Offers in Compromise.
The Allowable Living Expense standards are used in cases requiring financial analysis to determine a taxpayer’s ability to pay.
The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas. These standards are used when evaluating installment agreement and offer in compromise requests.
The National Standard miscellaneous allowance has been expanded to include additional items.
Taxpayers can use the miscellaneous allowance for expenses such as:
1. credit card payments and
2. bank fees and charges which were never allowed in the past.
IRS has provided some guidance and clarified to allow payments for loans guaranteed by the federal government for the taxpayer’s post-high school education.
In addition, payments for delinquent state and local taxes may be allowed based on percentage basis of tax owed to the state and IRS.
Should you have any questions call us today. Have experienced Former IRS Agents answer your questions.
New Offer in Compromise Program – Get Tax Relief in Ft.Lauderdale, Miami, West Palm Beach
