"Due to the current economic climate, many taxpayers have been unable to fulfill their obligations to the IRS and state tax authorities"
An offer in compromise (OIC) is an agreement between the taxpayer and the IRS that allows the taxpayer to settle delinquent tax debt for less than the amount owed. The settlement amount is based on the taxpayer's net worth plus their future income potential.
The IRS recently announced in a press release that its employees would be permitted to consider a taxpayer's current income and potential for future income when negotiating an offer in compromise.
"Even though an OIC has always been a viable option for delinquent taxpayers, only a small percentage of these taxpayers qualified for the program since offers were judged based on taxpayers' income in prior years," said Khanna. "The new flexibility by the IRS of considering taxpayers' current income in addition to the potential for future income greatly improves their chances of qualifying for an OIC settlement."
For more information, see the IRS press release at http://www.irs.gov/
About K&K Tax Group:
K&K Tax Group, LLC, based in Miami, FL, is a national tax resolution firm dedicated to providing solutions to individuals and businesses who find themselves in trouble with the IRS and/or state tax authorities. For more information, visit www.kktaxes.com or call (888) 263-1683.
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K&K is a National Tax Resolution Firm representing taxpayers before the IRS and state tax authorities across the nation.