(NAPSA)—With thestart of the New Year also comesthestart of a new tax season. And for many who owe back taxes to the IRS or state, this time of year can be especially troubling andfrustrating. However, when it comes to un- paid taxes, there are times when a “compromising situation” can actually benefit a taxpayer. In certain situations, the IRS will accept what’s known as an Offer in Compromise, or OIC. This is whenit is unlikely that a tax liability can be collected in full and the amount offered to the IRS by the taxpayer reasonably reflects what the IRS hopesto collect. Typically, the person pursuing this process is someone who hasn’t paid federal or state incometax for several years and may befacing an immediate crisis involving wage or bank account garnishments, foreclosures, levies or liens. Part of the IRS’ willingness to accept a settlement offer is based on an analysis of a person’s financial standing. It is a complicated process that can take up to 24 months or more to resolve and involves a debtto-asset formula devised by the IRS. As part of the process, the taxpayer must present current ver- sions—covering the last three months—ofthe following: * Bank statements, Pay stubs, Life insurance statements, * Utility and phonebills, * Mortgage statements, Car insurance, Monthly auto payments, Court-ordered payments such as child support, and The person’s last filed tax return. In fact, to be eligible, a person must be current on all of his or her tax returns. Once an OIC is accepted by the IRS, either installment or lump sum payments are arranged. In certain situations, the IRS will accept what’s known as an Offer in Compromise to clear up un- paid backtaxes. Once the agreementis in place, the taxpayer must keep current on all payments. While an OIC does offer hope for those who qualify, it can be a complicated process. That’s why many people turn to professionals, such as JK Harris & Company, for assistance whenfiling and negotiating such an offer. The nation’s largest tax resolution firm, the company’s staff includes veteran ex-IRS agents, CPAs, attorneys and Enrolled Agents—professionals who specialize in tax issues and are licensed to represent taxpayers before the IRS. There is a fee for what the company refers to as its resolution or representation services. Additional fees are charged for tax preparation, audit representation, use of the company’s emergency team and use of the Special Assistance Group, which handles larger and more complex cases. To learn more, call toll free 1- 800-795-0593 or visit the Web site at www.settlebacktaxes.com.
