If your current income doesn't provide an accurate analysis of what you may earn in the future, the IRS may require you to sign a future income collateral agreement. The agreement would specify at what income levels that action is triggered, and would also set a dollar limit. You will have to pay an agreed-upon percentage of your adjusted gross income. Taxpayers with this type of agreement are required to provide a Form 3439, Statement of Annual Income, every year.
"If someone has a big spike in their income and can pay more, we may make an adjustment down the road," Shulman said.
If you already have an accepted OIC but your financial situation has changed, you should submit a proposal to renegotiate your agreement. It must be based on "doubt as to collectability" and should be submitted to the IRS unit monitoring your OIC.
There are other payment options if you have past-due tax debts, such as a monthly installment agreement. An OIC is considered only after these other options have been exhausted.
If you've been tempted to call one of the promoters who claim your tax debt can be reduced for pennies on the dollars, go to one of the Saturday open houses first -- or call the IRS. Don't pay thousands of dollars for something you may be able to work out with the IRS for free.
The IRS has created a new page on its Web site with numerous resources, including links to information on tax assistance. On the home page, search for "Tax Center to Assist Unemployed Taxpayers." Even if you aren't unemployed, the resources are helpful if you are having trouble paying your taxes.
I'll admit it's hard to link the word compassion with the IRS. But Shulman is on a mission to collect what the government is owed, through ways that minimize the trauma to those having trouble meeting their tax obligations.