The IRS recently announced that it is initiating changes that may deduce individuals tax debts. The IRS has opened up the Offer in Compromise (OIC) program to allow certain taxpayers to negotiate and settle with the government for less than owed if the tax debt creates a significant financial hardship. According to the following article, for an application fee of $150, individuals will now be able to start the OIC process.
While it is not guaranteed that all submitted applications will be approved, more people may be able to get relief. It appears that the IRS is now recognizing that those with tax debts also have other debts, such as a mortgage or unsecured credit card debt they are dealing with. For those people, tax relief may be easier. Now, unsecured credit card debt, as well as student loan debt and delinquent state and local income taxes will be included as part of the debt equation when considering an OIC. Tax debt can be scary to deal with, especially if your are also carrying other heavy debt loads. If you simply cannot deal with it on your own or want an opinion, see out the assistance of an attorney to review your debt situation and help you develop a plan to tackle it head on.
Kevin Fallon McCarthy
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