Los Angeles California (PRWEB) April 28, 2014
With a growing number of taxpayers facing severe financial problems, the Internal Revenue Service (IRS) has agreed to assist financially distressed individuals by providing more flexible terms for the Offer in Compromise program. According to Madison debt and tax relief, in Santa Monica, California, the new terms will expand the previous Offer in Compromise program and make reasonable tax settlements available to a greater number of taxpayers.
An Offer in Compromise, which allows a taxpayer to settle tax debts for less than the full amount, provides a great opportunity for distressed taxpayers to resolve tax problems more quickly than through traditional methods. However, since the IRS has a strict set of rules they must operate within, they will not approve an Offer in Compromise if believe the taxpayer is capable of paying the full debt. Now, the IRS has announced a new, more lenient set of rules for approving new Offers in Compromise. The new rules revise the future income calculation, allow taxpayers to pay overdue state and local taxes, allow taxpayers to repay student loans, and increase the allowable living expenses.
“With the average American taxpayer having less disposable income and continuing to feel the pressure of the dragging economy, the federal government is trying to encourage people to make arrangements with the IRS in a timely manner,” said Tax specialist Mina Kuper from Madison debt and tax relief. “Even though the Offer in Compromise program is a great opportunity for delinquent taxpayers to reduce their tax burden, it is important to understand that negotiating with the IRS can be complicated. In order to obtain the most favorable results, I highly recommend taxpayers retain the services of a licensed attorney or CPA.”
With approximately 19% of taxpayers owing back taxes, the expansion of the Offer in Compromise program is likely to benefit both the IRS and delinquent taxpayers. Unfortunately, the process of negotiating tax settlements and obtaining IRS approval is complex and time consuming. To obtain favorable terms and the best possible tax settlement, an experienced tax resolution firm that fully understands the IRS requirements, approval process, and negotiation techniques should be retained.
Madison debt and tax relief is happy to offer free analysis. Madison debt and tax relief will offer you free advice and direct you go to Madisondebtandtaxrelief.com 1-800-441-2615 Madison debt and tax relief hold an A rating on the better business bureau.