The IRS has been granting more leniency to struggling taxpayers through a program called Fresh Start.
Now the agency says it is expanding this effort by offering more flexible terms in its Offer in Compromise program.
This is the program where the IRS agrees to settle for less than what’s owed because it knows it can’t squeeze anything more out of a taxpayer. The IRS says it has changed the financial analysis used to determine whether a taxpayer qualifies for the program.
For example, when the IRS calculates how much it can collect from you, it will base that on 1 to 2 years of expected future income, rather than the usual 4 or 5 years.
There are other math changes, too.
Altogether, the IRS says, these revisions mean that people can get their tax problems resolved in two years, instead of the usual 4 to 5 years.Copyright © 2015, The Baltimore Sun