The New Offer in Compromise -- Another case example: $42,000 settlement on $110,000 owed
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
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