Beverly Hills, CA (PRWEB) July 12, 2012
The Government has broadened its “Fresh Start” program by giving more flexible terms to its Offer-in-Compromise Program. These latest rules enable some financially distressed tax payers to clear up their tax issues even faster says, Platinum Tax Defenders CEO, Sherri Gastelum.
An offer-in-compromise (OIC) is an arrangement between a taxpayer and the Internal revenue service that settles the taxpayer’s tax debts for less than the entire amount owed. An Offer in compromise is generally not accepted if the IRS feels the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and property to determine the acceptable collection potential. To learn more about the changes contact Platinum Tax Defenders, a leading tax attorney specializing in IRS tax issues.
This expansion of the “Fresh Start” initiative concentrates on the monetary analysis used to determine which individuals qualify for an offer in compromise. It is always best to consult a tax attorney before contacting the IRS.
Here are the OIC changes:
Changing the calculation for a taxpayer’s future income The IRS will now look at only one year (rather than 4 years) of potential income for offers paid in five or fewer months; and 2 years (instead of 5 years) of future income for offers paid in 6 to 24 months. All OICs need to be paid in full within twenty four months of the day the offer is approved.
Permitting taxpayers to repay their student loans minimum installments on student loans guaranteed by the federal government will be allowed for the taxpayer’s post-high school education. Proof of payment must be presented.
Allowing individuals to pay state and local overdue taxes, when a taxpayer owes overdue federal and state or local taxes, and does not have the ability to fully pay the liabilities, month-to-month payments to state taxing authorities may be allowed in certain conditions. Contact a tax attorney to discuss application requirements.
Increasing the allowable living expense allowance standard allowances incorporate average expenses for basic necessities for citizens in similar geographical areas. These standards are used when evaluating installment agreement and offer-in-compromise requests. The national standard miscellaneous allowance has been expanded. Individuals can use the allowance to cover expenses such as credit card payments and bank fees and charges.
More information on the “Fresh Start” initiative contact Platinum Tax Defenders at 1-800-991-3242.