Offer In Compromise Streamlined to Aid Troubled TaxPayers

Over the years as I have been representing clients who have IRS problems, the IRS has been strict in its official requirements for accepting an Offer in Compromise (OIC). However, over the past year, with the downturn in the economy, the IRS has relaxed its unofficial position on its requirements for accepting an OIC, as well as other tax debt settlement options. Therefore, I have seen more taxpayer clients who have been able to qualify for an Offer in Compromise.

Generally speaking, an Offer in Compromise is where the IRS accepts less money than the taxpayer owes to settle their outstanding liability with the IRS. The IRS will only accept an OIC when all other tax collection alternatives have been exhausted. Other IRS tax collection alternatives may be a short extension of time to pay, an installment agreement (making monthly payments until the debt is paid in full), full payment of the debt or hardship status. Hardship status is where the taxpayer is unable to pay anything against their tax liability at the present time. It is usually a temporary solution due to unemployment or illness. Finally,... ...read full post

 

What You Need to Know About the Earned Income Tax Credit

Are You Getting What You Deserve?

There is approximately two weeks until income taxes must be filed with the Internal Revenue Service, and they are doing what it takes to get the word out about earned income tax credit to taxpayers.

They want everyone who is eligible for this credit to have full access to the information needed to receive what the government is providing to them.

$59 billion was claimed by 26 million taxpayers last year, and that included close to 135,000 residents of Nebraska whose share was greater than $278 million.

However, the IRS indicates that 20 percent of those qualifying for the earned income tax credit are not asking for it.

IRS spokesman Christopher Miller stated, “We’re currently hitting four out of five families that are eligible, and we’d like to make it five out of five.”

He also said that the impact of the recession, which includes job losses, hours and pay cuts could mean that there will be even greater numbers of families who will be eligible this year.

Qualifying factors that will allow individuals as well as families to claim earned income credits are as follows: a single filer having no children is limited to adjusted gross income of $13,460, and... ...read full post