IRS Announces changes to Offer In Compromise Program due to current recession.

  

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In previous years the Offer in Compromise Program utilized present income and potential for future income when evaluating an application for a “pennies on the dollar” settlement of all back-tax liabilities. Due to the present economic conditions however, the IRS has relaxed its rules in evaluating past earnings and potential earnings when rendering a decision on this type of settlement application.

In an unprecedented move, the IRS is now evaluating the Offer in Compromise application based on present earnings for taxpayers who are or have faced unemployment, underemployment and other factors affected by these current recessionary conditions. There is less emphasis in their evaluation of past or potential future earnings.

This means that taxpayers who previously would not qualify for a “pennies on the dollar” Offer in Compromise settlement, may now qualify due to changes in their respective earnings as the result of our present adverse economy.

We at United Tax Group expect the IRS to revert back to their previous emphasis on future and past earnings when evaluating Offer in Compromise submissions and our guess is probably within the next four to six months. Therefore if you have back tax debt and you’ve been affected by our present economy, we strongly recommend that you contact us immediately. We will provide you with a thorough evaluation to determine if you qualify for a reduced settlement through the OIC program while the parameters are still in their relaxed state.