I was recently interviewed byÂ Martin Vaughan from Dow Jones News for an article he was writing about the new circumstances under which the IRS would consider Offer in Compromise settlements that it would otherwise have rejected because of a home equity issue.
Under the Offer in Compromise program, the tax collector may settle with a taxpayer for less than the full amount of taxes owed. Under previous guidelines, the IRS does not generally accept compromise offers from taxpayers who have untapped home equity.
I told Vaughan that tax lawyers and professionals will definitely be testing the IRS’ new flexibility on the home equity front:
“I think you will see a huge spike in requests for offers in compromise,” said Rozbruch. “In 2006 and 2007, we weren’t doing a lot of offers, because people had equity in their homes, and they didn’t qualify,” he said.
But Rozbruch said the real driver for compromise offers is the the bursting of the real estate bubble, not the IRS promise of flexibility. “There are a lot more people now with net zero equity,” he said.
Read the full article here: New IRS Review Of Home Equity Could Help Settle Disputes.
If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web siteÂ for a free tax relief consultation or call us at 866-477-7762.Â Â
More Tax Help, IRS News and Tax Relief Tips:
- IRS Offer in Compromise Helps Taxpayer in Monroe, WA Save More Than $200,000
- Tax Compromise Improvement Act Helps Struggling Taxpayers Enter into Offer in Compromise Agreements with IRS
- Tax Resolution Services CEO Named Executive of the Year Finalist in 2009 American Business Awards
- Tax Help For Offer in Compromise Applicants: New IRS Changes to Processing
- IRS Tax Relief For Last Minute Filers as April 15th Approaches