SB/SE Commissioner Faris Fink said, at the Fall Tax Division Meeting of the American Institute for Certified Public Accountants on Nov. 7, that the IRS will focus more on how it conducts its financial analysis in calculating offers in compromise agreements.
IRS will now allow for delinquent state and local taxes as a part of the financial analysis during the offer process, as well as allowing for guaranteed student loans in certain situations, he said.IRS is also starting to allow additional items, including minimum credit card payments, bank fees, and bank charges, in its analysis, Fink said.
It had previously modified the "reasonable collection potential" calculations to afford greater flexibility and faster resolution to financially distressed taxpayers, Fink said.
These steps constitute "the relaxing of what were some pretty stringent requirements," which is allowing offers in compromise to be a more "viable tool," Fink said.
Need to Settle for Less Than the IRS Says your Owe?
These steps constitute "the relaxing of what were some pretty stringent requirements," which is allowing offers in compromise to be a more "viable tool," Fink said.
Need to Settle for Less Than the IRS Says your Owe?
Contact the Tax Lawyers at Marini & Associates, P.A. for a FREETax Consultation at www.TaxAid.us or www.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243).
Read more at: Tax Times blog
