On May 21, 2012, the IRS came out with another option to its \u201cFresh Start\u201d initiative called the Offer in Compromise (OIC) program.\u00a0 The purpose of this program is to give taxpayers that have little or no hope of catching up on past taxes, eliminate their IRS problem by paying a fraction owed and staying in compliance afterwards.<\/p>\n
Changes were made to the calculations to determine a taxpayer\u2019s future income, allowing taxpayers the ability to pay back their student loans, delinquent state taxes and allowing more living expenses.\u00a0 All of these changes reduce the amount the IRS will expect to be paid to eliminate your tax liability.\u00a0 During the last five years, 258,000 offers were submitted and only 68,000 accepted.\u00a0 That\u2019s only about 1 in 4.\u00a0 Most of the problems were errors in calculating the amount of the offer and maintaining constant communication with the IRS personnel assigned to your case.<\/p>\n
The IRS estimates that these revisions will result in a 75% reduction in the amount of the OIC paid back within 5 months and a 60% reduction if paid back within 2 years.\u00a0 Scott Allen E.A. near Tempe AZ has the expertise to advise, file and get acceptance of your Offer in Compromise.\u00a0 He offers a free initial consultation and can be reached at 480-926-9300.<\/p>\n