IR-2012-53, May 21, 2012 WASHINGTON — The Internal Revenue Service today announced another expansion of its “Fresh Start” initiative by offeringmore flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the [...]

Far too often when an unrepresented taxpayer speaks to an IRS collection agent the agent lies to him by making one or more of the following statements: You must pay the debt or you will be criminally prosecuted If you don’t pay the debt in full within so many days, your assets will be seized It’s a [...]

In these bad economic times few of us have any extra cash laying around after we pay our monthly living expenses. The IRS doesn’t care about that, right? Wrong. If you can’t pay your debt and can prove it, the IRS will stop (at least temporarily) attempting to collect the debt from you. Non-Collectible Status [...]

If you can’t pay your tax debt in full, you will have to completely disclose your financial circumstances to the IRS. There is no way to avoid this disclosure requirement other than making full payment. A taxpayer’s financial information is provided on one or more of the following prescribed IRS forms: IRS Form Number Description [...]

In certain special cases the IRS will accept an Offer in Compromise where the taxpayer does not dispute the liability and appears to have enough assets and/or income to pay the debt in full. Effective Tax Administration Offers falling into this category are called Effective Tax Administration offers. Congress has authorized the IRS to accept [...]