Generally, the IRS sets income eligibility for a waiver if taxpayers fall at or below 250 percent of the poverty level by looking at their household’s size and gross monthly income. The new law enables the IRS to examine a taxpayer’s AGI from the most recent tax return to determine whether it is at or below 250 percent of the poverty level.
IRS Approves Changes on OIC Fees
The Internal Revenue Service has released final regulations that increase the Offer in Compromise application fee to $205. They also enable the IRS to provide an additional way waive to OIC fees for low-income taxpayers, based on their adjusted gross income.