Resolution Success Stories

Using your State Tax Problem to make your IRS Offer in Compromise better

Most people who fall behind on their IRS debts also owe State income tax as well. While this is daunting: there is a silver lining in owing the State too:

Your state payments are allowed when calculating an IRS - Offer in Compromise!

For example: if you set up a $300 payment plan with the State - for the most part and with few exceptions -- the IRS will allow that in your calculation of your Offer in Compromise settlement.

How much money is it worth to your IRS Offer? Well every $100 of disposable income reduced translates into $1200 in reduction of your Offer. So a $300 payment plan should reduce your Offer by $3600.00. Now all of this is assuming that you do have some disposable income left over to pay the State. If you don't have any disposable income - you might need to make a settlement with the State as well.

We have blogged heavily about the Offer in Compromise program and the 2012 rule changes in our 6 part series which starts here:

Offer in Compromise Rule Changes for 2012: Biggest Ever - Part I of a 6 Part Series

For over 30 years, WATAX solves every kind of tax problem, from unfiled returns to negotiating balances due. Call us at 1-888-282-4697 or email us a description of your tax issue and we’ll contact you.
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