IRS Announces Waivers; The Internal Revenue Service (IRS) made an announcement about the particular waivers for Offer in Compromise application in the United States, as per the final regulations, the Offer in Compromise application fee is increased to $205 that provides a bonus approach for the IRS to waive the Offer in Compromise application fee for low-income taxpayers, on the basis of their adjusted gross income (AGI).
IRS Raises Offer In Compromise Fee to $205 BUT Offers Some Waivers:
An Offer in Compromise (OIC) is a relief program offer by the IRS. It is an agreement between a taxpayer and the agency for the settlement of a tax debt for less than the full amount owed. Those taxpayers who can’t pay their full tax debt, or they can pay full debt but doing so would generate a financial hardship for them get the advantage thorough OIC program. When considering an OIC for a particular taxpayer in USA, the IRS considers his financial circumstances by and large tending to administratively resolve the amount due.
Applicants can qualify for Offer in Compromise waiver for their OIC application fee if they meet the eligibility criteria of a “low-income taxpayer”. To qualify for a waiver of the OIC application fee, a new provision from the Taxpayer First Act provides a supplementary way for low-income taxpayers in USA.
Generally, the IRS considers the household’s size and gross monthly income of the applicants to determine whether they fall at or below 250% of the poverty level. An additional standard is provided in the new law to for the IRS to use in making this calculation. Now, the IRS will also consider the Adjusted Gross Income (AGI) of the applicants from the most recent tax return for determining whether it is at or below 250% of the poverty level.
To get complete details on how do you get an offer in compromise approval and what is need for an offer in compromise, contact Black Ink. We facilitate our clients to become an IRS-compliant citizen of USA by resolving their tax debts.
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