For those who are struggling with tax debt, an IRS Offer in Compromise has always been a viable solution. In past years, the IRS has only accepted approximately 34% of those who apply. New regulations instated under the IRS “Fresh Start Initiative” have allowed many more Americans to reach tax debt freedom than ever before.
In the past, an individual needed to fill out the IRS form 433-a in which they stated their income and expenses. The difference of these two numbers was multiplied by the number 48 if you intended to pay off the entire debt within a 5 month period. It was multiplied by 60 if you needed to pay off the offered amount in a longer period of time. These calculations determined what you were to pay and the time period of payoff based on your income and expenses.
Unfortunately, the IRS used a set of National Standards in order to compensate for living expenses and the offer acceptance. These standards did not include unsecured debt such as credit card payments. The averaging system was outdated to say the least and those living in high cost of living areas often got the shaft. The IRS’s answer to these individuals was, “live somewhere cheaper.” Ok, thanks.
Under the IRS Fresh Start Initiative, the IRS has loosened the National Standard tables for housing, transportation, and expenses. The initiative also allows those that apply to include more miscellaneous expense allowances such as percentages of credit card debt. Student loan payments and delinquent state and local taxes are also now allowable during offer consideration.
Instead of multiplying disposable income by 48 or 60, it is not multiplied by 12 or 24. In addition, if you have disposable income coming from a viable business, these assets will not count against you when calculating income and expenses.
If you feel you are in need of tax relief, you aren’t alone. Thousands of Americans are working hard just to pay the bills these days, leaving little to pay the IRS. Now is the perfect time to take advantage of new IRS Offer in Compromise regulations. The first step is contacting a professional tax relief expert.
An attorney who specializes in tax relief if well acquainted with the new IRS Fresh Start Initiative offerings and will be able to loOK over your paperwork to determine whether or not you will qualify. If he or she feels you have a good chance of acceptance, your attorney will help you apply and negotiate down your debt with the IRS. If your application is not accepted, your attorney will have the ability to appeal the decision.
If you are struggling with tax debt, contact the experts at Optima Tax Relief. Their attorneys can help you get the tax relief you need now. With over 25 years of experience in dealing with the IRS, you can be sure the staff at Optima will find a way to get your debt manageable so you can forget the IRS and get on with your life.
About the Author
Devin Finley is a freelance writer and tax relief expert. Devin writes on a multitude of financial and legal topics. He enjoys collaborating and strategizing with other professionals to ensure tax & debt clients receive competent and beneficial representation. For more information Visit http://optimataxrelief.com/