The IRS announced more flexible terms to its Offer in Compromise.

Posted on May 24, 2012

On May 21, 2012, the IRS announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers clear up their tax problems and, in many cases, more quickly than in the past. An OIC is where you cut a deal with the IRS and pay less than what you owe. Big changes to the OIC program include allowing taxpayers to repay their student loans, allowing taxpayers to pay state and local delinquent taxes and expanding the Allowable Living Expense allowance category and amount. We feel that these changes will increase the number of taxpayers that are eligible for an Offer. More importantly, the changes will make it easier and more affordable for taxpayers to obtain an Offer. When he was an attorney for the IRS, Patrick T. Sheehan recommended the acceptance or rejection of Offers in Compromise at the IRS District Counsel level. Since leaving the IRS, Mr. Sheehan has successfully obtained many Offers for his clients on very favorable terms. In one case the IRS accepted $2,000.00 on a $1.6 million dollar liability! Do you owe money to the IRS? Are you interested in an Offer in Compromise? Call us, we can help.