IRS Eases Rules for Taxpayer Settlements
The Internal Revenue Service is making it easier for its agents to negotiate settlements with cash-strapped taxpayers.
Under the new rules, individuals can provide less documentation, will have access to IRS agents who have been trained in settling tax debts and will have more freedom to compromise.
In fiscal 1998, only 25,052 settlement offers were accepted out of the 105,255 presented in what the IRS calls its Offers in Compromise program.
“We want to work with taxpayers to make it simpler for them to apply for an Offer in Compromise,” said IRS Commissioner Charles O. Rossotti. “The process will be streamlined to make more and more people eligible.”
Congress and President Clinton ordered the IRS to improve its compromise efforts last year as part of the IRS Restructuring and Reform Act.