In continued efforts to help struggling taxpayers, the North Carolina Department of Revenue is making it easier to participate in the Offer in Compromise program. The changes will make it more simple for taxpayers to qualify for and understand the process.
The program allows taxpayers to submit an offer, requesting NCDOR accept a lump sum payment that may be less than what is owed. The department reviews a taxpayer’s complete financial situation in order to determine if an offer can be accepted. The goal is to resolve tax liabilities in a way that is helpful to both the state and the taxpayer.
“We are constantly seeking ways to help our citizens who may be struggling through hard financial difficulties,” said Secretary of Revenue David Hoyle. “The changes we are making to this program will make it easier for many people to submit a valid offer and resolve their debts.”
Changes to the program will reduce the number of criteria a taxpayer must meet to qualify and will use IRS standards that are more favorable to the taxpayer when determining disposable income, which is one of the considerations for accepting an offer. In most cases, NCDOR will also provide taxpayers with a counter offer when an original offer in compromise is denied.
The simplified and improved process should result in an increase of offers submitted by taxpayers and accepted by the department.