Skip to comments.IRS widens taxpayer debt forgiveness program ("Offer in Compromise" program)
Posted on 05/21/2012 8:44:34 PM PDT by NormsRevenge
WASHINGTON (Reuters) - More middle-class Americans will be able to work out their debts to the U.S. Internal Revenue Service because of changes in a tax payment forgiveness program, the agency announced on Monday.
The "Offer in Compromise" program lets taxpayers negotiate agreements with the IRS to pay less than the full tax owed. The announced changes make the program more flexible for taxpayers, with some people able to pay off their debts faster, according to the IRS.
The IRS announcement focused on the financial analysis used to determine which taxpayers qualify for an Offer in Compromise.
Additionally, the program gives taxpayers flexibility to payoff student loans and local taxes while making the federal tax payments.
"This is going to be a big deal for middle-class people," said Keith Fogg, a tax professor at the Villanova University School of Law who formerly was an IRS district counsel.
(Excerpt) Read more at news.yahoo.com ...
Tax debt forgiveness? Too bad there isn't a black market for debt.. like carbon. Liberals would find a way to profit from it.
I used to be good for tens of thousands into their coffers every year, year in and year out.
So their revenue stream is drying up in some cases.
If I paid my taxes, but ran up my credit cards buying big screen TVs and iPads, I have to declare bankruptcy or be endebtted to the banks.
However, if I ignored paying taxes and bought all that stuff instead, the government will "forgive" me.
Is that right?
So IRS agents will use some type of selective enforcement procedure to see who gets relief and who gets intimidated, as I am sure no Warren Buffet type will apply for this if they feel they have plenty of excess money and are not paying enough in taxes.
In Obamatalk that's "A big deal for middle-class people."
Dont be using logic in a political debate!!!
No, it's not. My friend, who has had a moderately successful business, just went through this--she got behind on her taxes because she was laid up following two major surgeries. The IRS didn't forgive the debt; she simply worked out a deal to repay the taxes over a period of years, on top of the usual taxes she owes. The IRS agent wanted her to save money for the IRS by having her elderly Labradors put to sleep. Can you imagine??
Considering how many millions of dollars - or is that billions of dollars - government employees owe IRS what do you want to bet that they are first in line to receive a Compromise Agreement. It will probably go like this. IRS: You owe $85,000. Government Employee: I only have $8.00. IRS: Fine - that close enough for us. If we had any sort of honest government they would publish the list of all of these delinquents and attach everything they own until it’s paid in full.
Not really. They don't agree to this unless they're convinced you're a turnip they ain't getting much blood out of anyway.
Unfortunately, you've made the whole point right there!
They’re getting desparate. This is a good thing.
Time for an IRS agent convention in Las Vegas?
Now if the debt collectors that bought bad debts from bank credit cards would just do the same.
Banks wrote them off and told the debt collectors to collect if they can.
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you left out the Jell-Nails and Bling-Bling ...