If you owe the IRS but have been putting off getting resolution for your past due tax debt, now is a great time to see if you may be eligible for a settlement, or Offer in Compromise. The Offer in Compromise program is where the IRS agrees to accept a smaller amount than what you owe, based on your financial situation and ability to pay.

Why is now a better time than ever? Recent reports show that as a result of the home buyers’ tax credit that was being offered, the housing market has finally started to show some signs of improvement, and that means home prices are beginning to pick back up. What does this mean in relation to your tax bill? The IRS uses a number of factors, such as the value of your assets, to determine what you can afford to pay them. That is why it is to your advantage to look into settling now, while home values are still relatively low, so that your assets will total at a lower amount.

Don’t own a home? Now is still a great time to try to get a settlement- the IRS has recently stated that they are loosening the guidelines for the OIC program due to the state of the economy. Those who wait until the economy picks back up may find themselves in a situation of having to pay back their taxes in full due to a change in job status, a raise in income, or other financial change that would then put them in a fully collectible status.

To find out whether the Offer in Compromise program or some other option would be right for you, schedule a consultation with a tax professional.