Immediately following the initial IRS release in February, Tax Masters was asked by practitioners and interested media parties alike specifically about the Streamlined Offer in Compromise Program. As reported in the 2010 National Taxpayer Advocate’s Report to Congress, the IRS began a pilot program in May 2010 to test new procedures to “increase efficiencies and improve the quality of OIC case decisions.” Because the Commissioner announced the streamlined OIC program in February, our assumption is the pilot program was a smash success. The trouble was, no one knew what the streamlined program looked like except IRS insiders directly involved with the pilot. Four months later, the IRS has pulled the curtain back and further defined just what the Commissioner was talking about when he announced the streamlined OIC.
What Delinquent Taxpayers Need to Know About the Streamlined Offer in Compromise Program
The expanded Streamlined Offer in Compromise program includes:
Fewer requests for additional financial information
Requests for additional information by phone instead of by snail mail, when required
Greater flexibility on the part of the IRS when determining your ability to pay
According to the Streamlined Offer in Compromise Program page on the IRS website, taxpayers who owe a tax debt may qualify if they:
Earn wages through an employer, either by W2 or 1099
Are currently unemployed or out of work
Are self-employed with no employees and gross under $500,000 per year
The IRS site further states that you may be eligible for the streamlined program if:
Your household income is less than $100,000, and
Your total tax debt is less than $50,000 when you file your offer in compromise
How to Take Advantage of the Streamlined OIC
If you believe you qualify for a streamlined offer in compromise you should call us today. Tax Masters will protect you while we help you file all delinquent tax returns and regain compliance with the IRS. While we are doing the work to get you back in compliance, we will work with you to complete a 433 Financial Analysis, which will show you whether you should qualify for the Streamlined Offer in Compromise Program. After you regain compliance and file all your old returns, we will be glad to help you submit an offer in compromise if our financial analysis indicates you should qualify. The best part? You don’t pay for any TaxMasters offer in compromise preparation services unless the IRS accepts your offer. You would still be responsible for the $150 application fee.
You must act to take advantage of the new Streamlined Offer in Compromise Program. The IRS will not contact you to let you know you qualify. The IRS has opened the door for those of you with tax debts under $50,000. Will you walk through it? Or will you wait and let the IRS take a little of what you own at a time until it is gone?
Don’t let this opportunity pass you by if you owe the IRS and cannot afford to pay the tax. The IRS is trying to give you a fresh start. Take your first step toward a fresh start today!!