In times of economic downturn, it’s not only the general public that has cash flow problems, but due to lower tax revenues during these down times, the federal government also finds itself strapped for cash. It is often during these times where the federal government turns to the IRS to increase funding. Much of this funding comes from the IRS stepping up efforts to recover back tax debt. It is this aggressiveness from the IRS that generally results in a larger volume of tax liens and tax levies being executed.
One of the more common types of liens executed by the IRS is liens on property. The IRS filed nearly 1.1 million in the fiscal year 2010 (between September 2009 – September 2010). An overall uptick in other types of liens has also been duly noted as the number of troubled taxpayers who have seen their paychecks, social security checks and wages levied. In fact, the federal government has been so strapped that the IRS, for the first time ever, has been going after taxpayers that owe as little as $1,000.00.
That was the bad news, here is the good news. The IRS is becoming more approachable when it comes to accepting a settlement via the IRS offer in compromise program. The push behind this effort really stems from the IRS attempting to make as much effort as possible to get tax payers current moving forward.
The IRS is releasing a new streamlined offer in compromise (OIC) program to enable them to cover a larger group of struggling taxpayers. The idea behind this modernization of the offer in compromise program is to allow a greater number of taxpayers to participate. Currently those taxpayers with annual incomes up to $100,000 with tax liabilities of less than $50,000 can now participate.
Of course, you can attempt to contact the IRS on your own and wade through the paperwork, forms and policies that the IRS puts forth in order to qualify for an offer in compromise with the IRS. In fact, many people have found success going alone, but we wouldn’t recommend that path, and here is why…Settlements are much tougher to come by and you must be assured that you have accomplished all of the steps required by the IRS, this is often difficult to achieve. Secondly, settlement offers to those that go it alone without understanding typical IRS settlement rates settle for a much higher number than their counterparts who hire an IRS taxes professional. In short, the risk of not reaching an offer in compromise at all with the IRS and even if you do, finding yourself paying much more than you should have, precipitates a recommendation to hire an IRS Tax Specialist. If you can find one that has previously worked for the IRS, knows who to talk to, what their policies and limits are, and how to get things done quickly and effectively, then you’ve found Jay Allen Finn, CPA of DoggedbyIRS.com.
Precious few others in the industry have as much experience and have had as much success achieving offers in compromise with the IRS for their clients as has Mr. Jay Allen Finn. Located in Houston, Texas, he is a no nonsense CPA who can effectively and efficiently reach an offer in compromise for you and save you thousands of dollars in back taxes.
