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Taxpayer Act 2005 (TIPRA)

Tax Increase Prevention and Reconciliation Act

In 2005 Congress significantly changed the Offer In Compromise program by passing the Tax Increase Prevention and Reconciliation Act (TIPRA), these changes affect all Offers submitted on or after July 16, 2006.


Some of the changes Include:

  • Taxpayers cannot be in an open Bankruptcy (as the debtor)

  • A taxpayer must submit a $150 application fee or sign and submit form 656-A (alowng with the worksheet) showing proof that the fee would be an undo financial burden

  • The taxpayer must submit a 20% lump sum offer or sign and submit form 656-A (alowng with the worksheet)showing proof that the lump sum would be an undo financial burden

  • The first installment of a periodic payment offer or sign and submit form 656-A (alowng with the worksheet)showing proof that the fee would be an undo financial burden must be submitted

As a result of the TIPRA it is more important than ever to consult with an knowledgeable professional who can evaluate your tax situation and help you get real Tax Relief with the Offer In Compromise program.