IRS announced yesterday that it has been “working to put in place common-sense changes to the OIC program to more closely reflect real-world situations”. That’s big news in my world as a Financial Solutions Attorney. We have struggled for many years with the ridiculous rules that have made the IRS Offer-In-Compromise (OIC) program useless for many taxpayers.
According to the announcement, the IRS will finally allow the taxpayer’s budget to include payments on student loans, payments on state and local delinquent taxes, and only look to future income over a 1 to 2 year period rather than the 4 to 5 year period in the past.
Even better, if they truly implement it (this may be too good to be true) they will not look to the equity in income producing assets of an on-going business in the calculation of reasonable collection potential. In the past, the IRS calculated an artificial business value which included income producing business assets. The artificial business value caused many small business OIC’s to fail.
We are going to be implementing these new changes immediately on our OIC cases. This could be great.
Here’s hoping.
GQ Law
