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
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