Positive changes to the Offer in Compromise Program (OIC) have resulted in an increase in acceptance rates according to a recent article by the American Institute of Certified Public Accountants (AICPA) outlining the new Offer in Compromise guidelines.
The AICPA article titled: Significant Changes to the Offer in Compromise Program reports these changes to be a result of the expansion of the Fresh Start initiative first announced in 2011 by former IRS Commissioner, Douglas Schulman. These initiatives were conceived as a way to bring tax relief to struggling taxpayers so they can resolve their IRS tax issues in light of the current poor economic environment.
The article also mentions other changes in IRS collection processes that have helped more people qualify for more IRS payment options than ever before. The new guidelines provide taxpayers with:
- Easier access to installment agreements
- Increased thresholds for federal tax liens
- Better processes for lien removal.
The AICPA article sights three major guideline changes as helping more people to qualify:
- Calculation of Future Income
- Changes in Allowable Expenses
- Changing how dissapated assets are used in future income calculations
Perhaps some of the most positive statistics about these initiatives are coming from the IRS’ biggest critic. National Taxpayer Advocate, Nina Olson states in her Congressional Report: Fiscal Year 2013 Objectives acknowledged improvements in the IRS acceptance rate of OIC cases. She reports that as of March 2012 the offer acceptance rate was 38%; up 26% over 2011. That’s great news for consumers!
There has never been a better time to take care of your IRS tax problems! Using historic tax changes to the Offer in Compromise Program and the Installment Agreement could work to your advantage and help you get your financial life back on track but don’t try to do it yourself. The Offer in Compromise Program is complicated and difficult to obtain without competent representation.
Contact a reputable certified tax resolution specialist or attorney who conducts a rigorous in-depth interview to find out if you are a good candidate for the OIC or another IRS tax settlement program that could be a better IRS tax debt payment option. Note: Not all firms conduct a thorough screening, so make sure you select a tax resolution professional carefully. It is important to know who you are entrusting your financial matters to.
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