While the Fresh Start Program sounds like a winner….It’s not that simple.
September 21, 2017
They say there are two things in life you can’t avoid, death and taxes. But, every year thousands of people fail to pay their due to the IRS. Today, the television, radio, magazines, and newspapers are filled with ads from companies who claim they can help you settle your tax debts for a fraction of what you owe. The program all these advertisements are referring to is the IRS Offer in Compromise program or OIC.
The Number of Debtors Continues to Go Up
According to a report issued by the GAO (U.S. Government Accountability Office), by the end of the fiscal year 2011, individual income earners owed the IRS $258 billion in unpaid taxes, while businesses owed $115 billion and these numbers have continued to increase each year. Although these numbers are staggering, the largest percentage of individuals owed less than $5,000 each. The Offer in Compromise program may be a good way for certain individuals to settle their debts with the IRS, but it is not a one-size-fits-all solution.
What is the Offer-in-Compromise Program?
According to the IRS, “An Offer in Compromise (offer) is an agreement between the taxpayer and the IRS that settles a tax debt for less than the full amount owed. The program provides eligible taxpayers with a path toward paying off their tax debt and getting a fresh start.” As a matter of fact the IRS has renamed this program calling it the FRESH START PROGRAM. The program has a simple aim, which is for both you and the IRS to come to a workable compromise. The compromise will allow the taxpayer to pay significantly less in back taxes than what is truly owed. The taxpayer can pay it off in one lump sum or make monthly payments.
The taxpayer must Qualify for OIC
While the Offer-in-Compromise program certainly sounds like a winner for anyone who is seriously behind on their taxes, it is not as simple as filing the right paperwork to be accepted into the program. To be accepted into the OIC program, your application will be fully examined and assessed by the IRS.
To qualify for the…