On the Tax Problem Resolution Blog, we will continue to be illustrating real case examples of how the IRS rule changes in the Offer in Compromise program can help you.
Our last customer in New York City owed the IRS about $110,000 from her self-employment. We had previously been setting her up with livable installment agreements on her debt to turn off the IRS collection process. But with the rule changes - we recommended her to do an Offer.
Previously the Offer was NOT in her reach as her disposable income multiplied by 48 months was FAR too high to settle her debt: $1918 month times 48 = $92,000.
Now that multiplier is 12 months ($1918 x 12 months = $23000) ...adding her assets and she has an Offer of $42,000. That's a big difference.
Read all about the Offer in Compromise rule changes in our FOUR PART SERIES Offer in Compromise - How Rule Changes can Help you
