Lothamer Tax Resolution Expands Services to IRS' Offer in Compromise Program
April 16, 2011 (PRLEAP.COM) Business NewsLansing, Mich. - Lothamer, the prominent Michigan CPA firm specializing in tax representation, announces changes made by the IRS to the Offer in Compromise program. The program, which reduces tax debt, is now accessible to more taxpayers.
The Offer in Compromise program allows taxpayers to relieve their tax debt by obtaining a lump-sum settlement. The amount of the settlement is determined by calculations of a taxpayer's income, assets and monthly expenses.
The IRS has recently expanded the program in two ways. First, they have raised both the amount of income a taxpayer can make to qualify. They have also increased the limit on the amount of debt one can have when applying for the "streamlined" version of the OIC. This means that taxpayers who previously did not qualify because their income was too high can now get re-evaluated to see if their tax burden can be reduced.
Secondly, the IRS has raised the standard allowances for expenses like housing or car payments. These calculations are used to determine what the IRS believes a taxpayer can afford to pay them. By raising the standard allowances makes more taxpayers eligible for the program and could translate into lower overall settlement amounts.
Lothamer, also a Michigan tax help provider, offers a free consultation with a licensed CPA or Attorney to determine if a client qualifies for the Offer in Compromise program and how much they could expect to save. The firm has a track record of obtaining settlements averaging 13 cents on the dollar. If a taxpayer is not a good candidate for an Offer in Compromise program, Lothamer will assist the client in pursuing alternate resolution strategies to get back taxes help.