TaxMan123.com

By Roger Chartier

United States of America IRS Tax Information

Offer in Compromise Changes

Paid following year or quarterly

 

The taxes are still growing and waiting to be paid the following year if not quarterly by a business.

The "Offer In Compromise" or (OIC) deal that the government is offering to folks who can't come up with the money to pay in full has changed.

They've altered some rules to the "Fresh Start" program to be more helpful to whoever needs them.

It is not accepted when the IRS feels that you can pay the lump sum in full or by using a payment deal.

The IRS will look at what you have for assets and income to figure it out.

The IRS has something to say about it all:
Here are the OIC changes:

• Revising the calculation for a taxpayer’s future income The IRS will now look at only one year (instead of four years) of future income for offers paid in five or fewer months; and two years (instead of five years) of future income for offers paid in six to 24 months. All OICs must be paid in full within 24 months of the date the offer is accepted.
  
  
• Allowing taxpayers to repay their student loans Minimum payments on student loans guaranteed by the federal government will be allowed for the taxpayer’s post-high school education. Proof of payment must be provided.
  
  
• Allowing taxpayers to pay state and local delinquent taxes when a taxpayer owes delinquent federal and state or local taxes and does not have the ability to fully pay the liabilities, monthly payments to state taxing authorities may be allowed in certain circumstances.
  
  
• Expanding the Allowable Living Expense allowance Standard allowances incorporate average expenses for basic necessities for citizens in similar geographic areas.
  
  These standards are used when evaluating installment agreement and offer-in-compromise requests.
  
  The National Standard miscellaneous allowance has been expanded. Taxpayers can use the allowance to cover expenses such as credit card payments and bank fees and charges.


• When the debt of tax is finally paid you can use form 12277 Application For Withdrawal and request that they withdraw the "Notice of Federal Tax Lien".

For those who want to use Installment Agreements

If you owe up to $50,000 you can pay through direct debit payments of as much as six years (72 months).

It is complicated, and these pages are meant to be informative about tax yet always subject to the IRS' changes etc.

More information on the “Fresh Start” initiative can be found at www.irs.gov after all they are the source for this information.

Here is a good place to look:
http://www.irs.gov/uac/Newsroom/IRS-Fresh-Start-Program-Helps-Taxpayers-Who-Owe-the-IRS