JK Harris CEO Commends National Taxpayer Advocate's Findings

    /24-7PressRelease/ - NORTH CHARLESTON, SC, August 10, 2007 -- JK Harris and Company LLC, CEO and Founder John Harris commended National Taxpayer Advocate Nina E. Olson today on her National Taxpayer Advocate's Report to Congress.

The report for Fiscal Year 2008 identifies "priority challenges and issues for the upcoming year," according to Olson.

JK Harris and Company, the nation's largest tax resolution firm, assists thousands of clients each year in submitting Offers in Compromise (OICs) to the IRS. Harris lauded many of Olson's remarks, particularly her analysis of the OIC program.

An offer in compromise is an agreement between a taxpayer and the IRS that resolves the tax debt. The IRS has the authority to settle, or "compromise," federal tax liabilities by accepting less than full payment under certain circumstances.

"The OIC program is successful at getting previously non-compliant taxpayers back into compliance," Olson said.

"Ms. Olson's report shows the IRS has to make great strides in order to improve the OIC program and to make it more accessible to taxpayers," said Harris, who founded JK Harris and Company in 1997.

"This program benefits the government since it usually collects more than it would in the absence of the program," Olson said.
"Legislation in 2006 made it a requirement for taxpayers to put down a lump sum of 20% of the Offer with their submission. Many taxpayers are unable to make this sort of down payment due to a lack of availability of liquid assets.

"As the IRS remains under scrutiny for its efforts to close the tax gap," Olson continued. "the Taxpayers Advocate Service is struggling to address taxpayer difficulties that arise as a result of the IRS' efforts."

The NTA is recommending several legislative changes that could reduce the impact of the partial payment requirement, including the following:

* Provide taxpayers with the right to appeal to the IRS Appeals function the IRS' decision to return an OIC before or after accepting it for processing;

* Provide an exception to the partial payment requirement for taxpayers who do not have immediate access to current income or liquid assets that could be used to fund an OIC without incurring significant costs, such as taxable income or penalties resulting from the withdrawal of assets. For those taxpayers who have immediate access to such funds, the partial payment requirement of 20% of any current income and liquid assets that could be disposed of immediately without significant cost; and

* Apply the low-income exception in cases where payment of the combined OIC user fee and partial payment, or borrowing for such payments, would cause an economic hardship.

"We are very excited about the recommendations Ms. Olson has made to implement changes for the taxpayers," Harris said. "I believe that her recommendations would help protect taxpayer rights and will lead to an increase in the number of acceptable submissions of OICs."

About JK Harris:
JK Harris & Company, LLC, (www.jkharris.com) based in North Charleston, S.C., is the nation's largest tax resolution firm and has served over 200,000 customers since its founding in 1997 by John K. Harris. JK Harris consultants are available to meet with consumers in over 450 locations nationwide by appointment only. The company also provides services for consumer and commercial debt, student loan debt, investment fraud, financial planning, tax return preparation, and audit representation.

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