- A client with significant assets may receive better treatment in or OIC then in a bankruptcy.
- IRS uses quick sale value (80%).
ADVANCED HANDLING OF OIC AND BANKRUPTCY
IN AN OIC
- A pension Plan with o present Right To Receive Funds Has NO VALUE!
- An IRA, 401(k) or KEOGH Plan is Treated as Having the Value at the Time the Offer is Filed;
- EXCEPTION If the taxpayer intends to use the funds toward the offer, then use value after deducting taxes and penalties.
- Business OIC’s for ongoing businesses are difficult.
- Particularly payroll taxes; IRS does not want to give one business an advantage over another.
- Difficult at the offer specialist level; somewhat relaxed at the appeal level.
2 POLICIES WHEN SUBMITTING BUSINESS OIC’S
- BUSINESS MUST BE CURRENT FOR 2 QUARTERS FOR PAYROLL TAXES;
- PRINCIPLES OF THE BUSINESS MUST BE CURRENT ON THEIR OBLIGATIONS TO FILE QUARTERLY ESTIMATES OR BE CURRENT ON THEIR WITHHOLDING.
- Assets liquidated shortly prior to an OIC where the proceeds did not go to the IRS.
- EXAMPLE: Cashing in an IRA and using the money for other debts.
- COLLECTION DIVISION OF THE IRS (SEVERAL BRANCHES)
- REVENUE OFFICERS
- POWERS OF ATTORNEY
- REQUESTING TRANSCRIPTS (3 BASIC TYPES)
- OFFERS IN COMPROMISE (OIC)
- THREE BASICS FOR AN OIC
- OFFERS BASED UPON DOUBT AS TO COLLECTIBILITY
- FORM 433 COLLECTION INFORMATION STATEMENT
- LUMP SUM CASH OFFER
- PERIODIC PAYMENT
- REMAINING STATUTE OF LIMITATIONS OFFER
- ITEMS TO INCLUDE WITH OIC
- SUBMITTING THE OFFER
- WHAT TO EXPECT AFTER FILING THE OIC
- DISCHARGING TAXES IN BANKRUPTCY AFTER REFORM
- TAX CLAIMS IN BANKRUPTCY
- LIENS AND CHAPTER 7
- ADVANCED HANDLING OF OIC AND BANKRUPTCY
- NON-LIABLE SPOUSE’S INVOLVEMENT
- LEVY RELEASES
- NON-COLLECTIBLE STATUS
- TYPES OF APPEALS
- COLLECTION APPEALS PROGRAM (CAP)
- INSTALLMENT AGREEMENTS (IA)
- PENALTY ABATEMENT