First, what is an Offer in Compromise (OIC)?
Second, what's the biggest change to the OIC rules?
Previously, IRS settlements were calculated by multiplying 48 months of one's "allowable" disposable income.
Old rules: 48 months
So - if your disposable income was $500 - multiplied by 48 months = your settlement with the IRS would be $24,000.00* (*with many other factors to consider - of course - like assets, "allowable" expenses and statute of limitations).
New rules: 12 months
With the new rules? Only 12 months of disposable income is required or using the previous data set -- $500 multiplied by 12 months -- your settlement would be only $6,000.00!*
Bottom line: You pay 75% LESS than Before!
READ PART 2: "Can You Pay Off Tax Debt Before it Expires?" in our Offer in Compromise series HERE