Goose Creek, SC (PRWEB) March 21, 2010
JK Harris and Company, LLC CEO and founder John Harris is applauding recent steps taken by the Internal Revenue Service to assist the recently unemployed and other taxpayers currently facing financial hardship.
“Times have been hard for so many taxpayers and the added stress of having back tax problems hanging over their heads is something they just don’t need,” said Harris. “I am glad to see the IRS offering some flexibility in their dealings with taxpayers, particularly with the Offer in Compromise program.”
An Offer in Compromise (OIC) is an agreement between the IRS and taxpayer that allows the taxpayer’s delinquent tax debt to be compromised for less than the amount owed. The offered dollar amount is based on the taxpayers net worth plus their future income potential, in other words, what the client is actually able to pay.
The new flexibility Harris refers to was recently announced in an IRS press release. IRS employees will now have additional flexibility when considering an Offer in Compromise from a taxpayer facing economic troubles, including recent unemployment. Specifically, IRS employees will be permitted to consider a taxpayer’s current income and potential for future income when negotiating an offer in compromise. In the past, offers have been judged based on a taxpayer’s earnings in prior years. Conversely, the IRS may require the taxpayer to repay a larger sum if they re-enter the workplace and their financial situation improves significantly.
“The potential benefits to taxpayers from this change to the OIC program are huge,” Harris said. “The IRS really has the potential here to help ease the financial burdens of cash-strapped taxpayers.”
The IRS is also offering special outreach efforts to the unemployed and a special section has been created on http://www.irs.gov to help taxpayers find information on tax assistance and relief. In addition, hundreds of Saturday Open Houses will be held to give taxpayers the opportunity to work with the IRS.
For more information, see the IRS press release at http://taxproble.ms/cSgqES.
About JK Harris:
JK Harris & Company, LLC, (http://www.jkharris-company.com) based in Goose Creek, S.C., is the nation's largest tax representation firm and has served over 250,000 customers since its founding in 1997 by John K. Harris. JK Harris consultants are available to meet with consumers in over 325 locations nationwide by appointment only. The company also provides services for fee-based financial planning, tax return preparation, and audit representation.
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