Using the IRS Offer in Compromise Pre Qualifier Tool

HOLLYWOOD, Fla. - Oct. 31, 2017 - PRLog -- A tool has been introduced by the Internal Revenue Service to help determine a taxpayer's eligibility to lower the taxpayer's outstanding tax debt through offer in compromise.

The Offer in Compromise Pre-qualifier Tool aids tax practitioners to determine the eligibility of a taxpayer for an offer in compromise by calculating a preliminary offer amount before starting the actual paperwork. If deemed applicable, an offer in compromise allows taxpayers to settle tax liabilities for less than the owed full amount.

Aside from asking certain personal information from the taxpayer's household, the total tax debt owe as well as the very recent tax year being requested to compromise. Any bankruptcy proceeding, filed federal tax returns, estimated tax payments and federal tax deposits should they be self-employed or responsible for employees. Assets, expenses and income are also included in the requests. After which, a proposal will be made.

Ever since the Fresh Start Program was expanded to help even more unemployed and financially constrained taxpayers, the procedures for both offers in compromise and installment agreements have been streamlined. There is now more flexibility in determining reasonable collection potential through its financial analysis for burdened taxpayers.

On the contrary, if the IRS believes that whatever liability can be settled in full through a lump sum or payment agreement, an offer will not be accepted. The assets and income evaluated by the IRS plays a role in determining whether the taxpayer has the ability to pay for debt incurred.

Because of the flock of requests from taxpayers for offers in compromise from the past years due to the struggling economy, the IRS has trouble with a huge backlog. Requests have increased by 28% from 2007 to 2011. To add, the manpower available to work on these requests have decreased, leading to the delayed response to taxpayers. This new Offer in Compromise Pre-qualifier tool helps the IRS by pre-determining whether an offer in compromise is a fit choice and worth pursuing to resolve IRS tax debt.

For more information:

http://www.curadebt.com/tax-debt-relief/

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