IRS Is a Lot More Open to Compromise These Days
It used to be that if you owed a large debt to the IRS you didn’t have a great chance of catching a break. Even though the IRS has always been able to compromise, at least a little, the tax agency has never been really eager to do so. Some people might not even be aware that this was a possibility, but it is. It’s called an offer in compromise and it gives taxpayers with overwhelming debt the chance to pay off that debt for less than the total amount owed.
During the 10 years between 2000 and 2010 the IRS accepted somewhere in the neighborhood of 25-30 percent of these petitions on average, but never reached the 40 percent threshold. However, recently, especially during the last three years the IRS seems to have become a lot more charitable with offers in compromise. That’s good news for taxpayers with large amounts of tax debt.
In the 2012, the IRS accepted 24,000, or 38 percent, of these offers and that number jumped to 31,000, or 42 percent in 2013. In 2014, the number dipped slightly to 27,000 accepted offers, or 40 percent. Typically the IRS does not accept OICs if the agency feels that the taxpayer has the means to pay off the entire debt. However, every situation is different, so if you are considering making an offer in compromise to the IRS to settle your tax debt, then you might want to speak with an experienced tax accountant from GROCO first, in order to weigh your options. You can contact us by clicking here or by calling 1-877-CPA-2006.
Tax Forms & Publications
Tax Forms & Publications The publications listed below are located on the IRS web site and require Adobe Acrobat to view. Visit the Adobe Web Site to install the latest version of Acrobat Reader. Publication 1 Your Rights As a Taxpayer Publication 3 Armed Forces’ Tax Guide Publication 15 Circular E, Employer’s Tax Guide Publication…
Hall Of Laughter
Hall Of Laughter In memory of Steve Gardner 1958-2010 Thanks for the accounting humor and endless hours of laughter. We love you! Three Blind Mice Audit The IRS Agent uses a math joke in his audit of the three blind mice. Accounting Puppets 2 Puppets tell Accounting and Audit Jokes. Accounting Puppets Puppets tell Accounting…
The Roth Way to Riches
The Roth Way to Riches By Roy Lewis With all the recent tax-code changes, it seems a number of taxpayers have forgotten the Roth IRA. That’s a shame, because it’s far more than an ordinary retirement savings account. Roth IRAs are tax-favored accounts to which qualified taxpayers can make non-deductible, after-tax contributions. Those contributions can…
Health Savings Accounts (HSAs)
Health Savings Accounts (HSAs) Medicare legislation enacted in December 2003 provides for a prescription drug benefit that won’t exist until 2006. But also part of the new law is a provision that went into effect on January 1, 2004—the creation of the Health Savings Account (HSA). By opening an HSA, you may be allowed to…