Archive for the ‘Fresh Start’ Category
IRS Becomes More Flexible On Offers In Compromise
The IRS recently put out IR-2012-53 which is an expansion on their “Fresh Start” initiative that’s being billed as a way for financially disadvantaged people to clear up their tax problems. This new announcement focuses on the financial analysis the IRS is going to use to determine whether people qualify for an offer in compromise. Now, the IRS will only look at one year of future income for offers paid in five or fewer months and this is down from four years and they’ll look at two years of future income for offers paid in six to twenty four months and this is down from five years. There’s also an expansion of the allowable living expenses allowance.
What does all of this mean? It means that more people should qualify for offers in compromise and of those that do, the offers should come with lower numbers for taxes paid. If you owe back taxes and you’re in a tough spot, I highly recommend you talk to a tax professional. I wouldn’t necessarily go with someone who advertises on the radio but this is something where you might want to get an extra opinion on.