How does the IRS use your excess monthly income in calculatiing an Offer in Compromise?

The Offer guidelines state that the IRS will look at either 12 or 24 months of net excess earnings when evaluating an Offer In Compromise. However, first the Offer Specialist must look at the sum of the monthly net excess earnings for as long as they can collect the tax (i.e. the time remaining on the collection statute). If that amount will full pay the debt an Offer will not be accepted. It is critical, therefore, to make sure the the collection time remaining is calculated correctly A professional who deals with these situations all the time, such as myself, is needed to make sure the statute is not overextended and the taxpayer is not overcharged. There are certain circumstances when the statute is extended by law, so all of these circumstances have to be checked.