Reforms Coming to Offer in Compromise?Any IRS debt only adds to your struggles in this economy. The government wants to make it easier to pay your taxes, yet others within government are calling for additional reforms.
In June Nina Olson from the National Taxpayer Advocate told Congress that the current Offer in Compromise (OIC) program discourages taxpayers who would legitimately qualify for this method of payment to the IRS.
Taxpayers accepted into the OIC program have dropped since 2001. Reasons vary as to why taxpayers may be reluctant to request this particular type of agreement with the IRS. In Olsons report, recommendations included everything from examining the current application process to adequate staffing within the department.
Qualifying for the program is based on a reasonable collection potential (RCP), part of which is based on anticipated future income. Yet todays market is riddled with company layoffs and financial upheaval not seen in decades. So how accurate could your anticipated future income be?
How can you determine if the upcoming changes could help you achieve the best tax settlement with the IRS? Avoid tax representation firms that have been sued for misrepresenting how they could help consumers through Offer in Compromise. Rely on a reputable firm of tax lawyers with excellent customer ratings.
Offer in Compromise isn't always the best agreement to pay your tax debt to the IRS. An experienced tax attorney will put your financial feasibility first, and theyll be by your side during payment negotiations with the IRS.