WASHINGTON — The Internal Revenue Service recently announced another expansion of its "Fresh Start" initiative by offering more flexible terms to its Offer in Compromise (OIC) program.
WASHINGTON — The Internal Revenue Service recently announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program.
The program will enable some of the most financially distressed taxpayers clear up their tax problems.
“This phase of Fresh Start will assist some taxpayers who have faced the most financial hardship in recent years,” said IRS Commissioner Doug Shulman. “It is part of our multiyear effort to help taxpayers who are struggling to make ends meet.”
The announcement focuses on the financial analysis used to determine which taxpayers qualify for an OIC. This announcement also enables some taxpayers to resolve their tax problems in as little as two years compared to four or five years in the past.
In certain circumstances, the changes announced include:
• Revising the calculation for the taxpayer’s future income.
• Allowing taxpayers to repay their student loans.
• Allowing taxpayers to pay state and local delinquent taxes.
• Expanding the Allowable Living Expense allowance category and amount.