Showing 1-12 of 30 results
Intro 103: Understanding the IRS Collection Process
Understanding the IRS Collection Process. https://youtu.be/qn3hMR9pjOk This course provides a brief overview of the IRS collection process. It does not provide strategies or exceptions to the rule. Later courses provide a greater explanation of these issues. The collection process starts after a taxpayer files a tax return without full payment…
OIC 101: IRS Authority to Eliminate Back-Taxes
IRS’ Authority, Motivation & Basis to Eliminate Back-Taxes. https://youtu.be/rwKeaiLO9xY An Offer in Compromise is an agreement between a taxpayer and the IRS that settles a tax liability for payment of less than the full amount owed. IRM § 5.8.1.2.1 (09-23-2008); Adamowicz v. US, 08-888C, Pg. 5 (D.C. Ct. Fed. Cl. 11/21/2011). …
OIC 102: Overview of the OIC Application Process
Overview of the Offer in Compromise Application Process. https://youtu.be/2FIA2Rv94cY This course focuses on a taxpayer’s ability to eliminate past-due federal income tax liability by establishing a repayment plan through the IRS “Offer in Compromise” program, which is commonly known as the “Fresh Start Initiative.” An overview is presented to help navigate…
OIC 103: Who Submits the OIC Application?
Who is the Proper Party to Submit the OIC Application? https://youtu.be/sW6KfFiK8wo Before filing a formal Offer in Compromise application, a taxpayer may request a meeting in the IRS office which would have jurisdiction over the offer to explore the possibility of compromising unpaid tax liability. 26 C.F.R. § 601.203(d). The Offer…
OIC 105: Is the OIC Offer “Processable?” – Part 1
Is the OIC Offer Submitted “Processable?” – Part 1. https://youtu.be/RGivexRiG_0 The IRS receives the taxpayer’s offer. The first step it takes is to determine if the submitted offer is “processable.” This issue is divided into two separate courses. Part 1 addresses issue relating to the taxpayer’s ability to fully pay…
OIC 106: Is the OIC Offer “Processable?” – Part 2
Is the OIC Offer Submitted “Processable?” – Part 2. https://youtu.be/RGivexRiG_0 The IRS receives the taxpayer’s offer. The first step it takes is to determine if the submitted offer is “processable.” This issue is divided into two separate courses. Part 1 addresses issue relating to the taxpayer’s ability to fully pay…
OIC 107: Offer Amount Formula
Offer in Compromise Offer Amount Formula. https://youtu.be/U4zEn2bHWC0 The three types of Offer in Compromise are as follows: (a) compromise based on “doubt as to collectibility”; (b) compromise based on “doubt as to liability”; and (c) compromise that promotes effective tax administration. 26 C.F.R. § 301.7122-1(b); Johnson v. Commission of Internal…
OIC 108: Asset Valuation for RCP – Part 1
Asset Component of RCP Formulas – Part 1. https://youtu.be/j2pMb1-OM-4 This Course focuses on Part 1 of the “asset” component of the RCP formulas or “,” including identifying and valuing the taxpayer’s assets. The “asset” component of the RCP formulas represents the realizable net equity in the taxpayer’s assets. The realizable…
OIC 109: Asset Valuation for RCP – Part 2
Asset Component of RCP Formulas – Part 2. https://youtu.be/j2pMb1-OM-4 This Course focuses on Part 2 of the “asset” component of the RCP formulas or “,” including identifying and valuing the taxpayer’s assets. The “asset” component of the RCP formulas represents the realizable net equity in the taxpayer’s assets. The realizable…
OIC 110: Income Calculation for RCP
Income Component of RCP Formulas. https://youtu.be/DV9QOoOxaAQ This course focuses on the “gross monthly income” component of the “Future Income” calculation for the RCP formulas. This focus includes identifying and valuing all sources of income. Gross monthly income is defined as all income from whatever source derived, including (but not limited…
OIC 111: Expense Calculation for RCP, Part 1
Expense Component of RCP Formulas – Part 1. https://youtu.be/OJCnBlwUdu8 This course focuses on Part 1 of the “allowable monthly expenses” component of the “Future Income” calculation for the RCP formulas. The allowable monthly expense analysis determines the “allowability” of a taxpayer’s monthly expenses. The next course, Part 2, focuses on…
OIC 112: Expense Calculation for RCP, Part 2
Expense Component of RCP Formulas – Part 2. https://youtu.be/OJCnBlwUdu8 This course focuses on Part 2 of the “allowable monthly expenses” component of the “Future Income” calculation for the RCP formulas. The allowable monthly expense analysis determines the “allowability” of a taxpayer’s monthly expenses. The prior course, Part 1, focused on…
OIC 113: Form 656, Offer in Compromise
Form 656, Offer in Compromise. An Offer in Compromise is an agreement between a taxpayer and the IRS that settles a tax liability for payment of less than the full amount owed. IRM § 5.8.1.2.1 (09-23-2008); Adamowicz v. US, 08-888C, Pg. 5 (D.C. Ct. Fed. Cl. 11/21/2011) (Offer in Compromise) and 26…
OIC 114: Form 433-A (OIC): Collection Information Statement – Individuals
Form 433-A (OIC): Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 433 must be included with the Offer in Compromise application packet when the grounds for compromise are based on doubt as to collectibility or effective tax administration. No Form 433 is required for an offer to compromise based…
OIC 115: Form 433-B (OIC): Collection Information Statement – Businesses
Form 433-B (OIC): Collection Information Statement for Businesses. Form 433-B (OIC), Collection Information Statement for Businesses must be included with certain Offer in Compromise application packets when the grounds for compromise are based on doubt as to collectibility or effective tax administration. No Form 433-B (OIC) is required for an…
OIC 116: Collateral Agreements
Collateral Agreements. Treasury regulation 26 C.F.R. § 301.7122-1(e)(2) states: “As additional consideration for the acceptance of an offer to compromise, the IRS may request that taxpayer enter into any collateral agreement or post any security which is deemed necessary for the protection of the interests of the United States.” 26…
OIC 117: Taxpayer’s Obligations During Offer Investigation
Taxpayer’s Obligations During Offer Investigation. The IRS spends many months investigating a “processable” Offer In Compromise application. So, a taxpayer must be patient while the offer is pending. Patience does not mean inaction. A taxpayer has obligations that must be satisfied during the IRS offer investigation. https://youtu.be/cUswCOppi4w
OIC 118: Terminating a Pending Offer
IRS Terminating a Pending Offer. An Offer in Compromise application can be “terminated” while the IRS is considering the application. A “termination” is defined as a closing of the Offer in Compromise application review process due to the death of the taxpayer. IRM § 5.8.7.1.6(1) (12-20-2018). The IRS must terminate its…
OIC 119: Withdrawing a Pending Offer
Taxpayer “Withdrawing” a Pending Offer. An Offer in Compromise application can be “withdrawn” by the taxpayer while the IRS is considering the application. The withdrawal of an application closes the Offer in Compromise application review process. There are two kinds of withdrawn offers: voluntary and mandatory. IRM § 5.8.7.4(1) (09-23-2008).…
OIC 120: Returning an Offer
IRS Returning the Offer. The IRS can “return” both a processable and an unprocessable Offer in Compromise application to a taxpayer without “accepting” or “rejecting” the offer. The IRS’s return of an application closes the Offer in Compromise application review process. A “return” is defined as a non-acceptance recommendation that…
OIC 121: Rejecting a Pending Offer
“Rejecting” a Pending Offer. The IRS can “reject” a processable Offer in Compromise application for many reasons. The IRS defines “reject” as a non-acceptance recommendation of any OIC offer that includes appellate rights. IRM § 5.8.7.1.6(1) (12-20-2018). The rejection of an application closes the Offer in Compromise application review process. …
OIC 122: Accepting a Pending Offer
“Accepting” a Pending Offer by the IRS. The decision whether to “accept” an offer to compromise is within the IRS’ discretion and must be based upon consideration of all the facts and circumstances. 26 C.F.R. § 301.7122-1(c)(1); Johnson v. Commission of Internal Revenue, 136 T.C. 475, 485 (2011); Christopher Cross, Inc.…
OIC 123: Taxpayer’s Duties Post-Acceptance
Taxpayer’s Duties Post-Acceptance. A Taxpayer has cause to celebrate the IRS’ decision to accept his/her offer to compromise the back-taxes. But the taxpayer must stay vigilant and in full compliance with all terms of the Form 656 offer terms for the 5-year period beginning with the date the offer was…
OIC 125: Tax Refunds
Tax Refunds. The IRS keeps any tax refund emanating from overpayment of any tax or other liability due through the calendar year the IRS accepts the taxpayer’s offer. Form 656, Section 7(e), https://www.irs.gov/pub/irs-pdf/f656b.pdf. The IRS will keep any refund, including interest, for tax periods extending through the calendar year that the IRS…
OIC 126: Appellate Rights
Appellate Rights Relating to OICs. This course discusses appellate rights in the Offer in Compromise context. Appellate rights are better understood when segregated into three issues: (1) appellate rights relating to a pre-rejection “independent administrative review”; (2) appellate rights following a collection due process determination (i.e. offer made as part of…
OIC 127: Levy Affected by OIC
Levy Affected by OIC. Taxpayers are not protected from the IRS collection apparatus while contemplating or completing an Offer in Compromise application. Similarly, taxpayers are not automatically protected from levy by submitting an Offer in Compromise application. “Submission of an Offer in Compromise does not automatically stay collection of an…
OIC 128: OIC Affects an Installment Agreement
Installment Agreements Affected by OIC. Is a taxpayer required to continue making installment agreement payments if the taxpayer plans on filing an Offer in Compromise? Yes, is the simple answer because the Offer in Compromise application has not yet been submitted and has not yet been approved for processing by the IRS. …
OIC 130: Criminal Restitution Issues
Criminal Restitution Issues. Taxpayers may submit an Offer in Compromise application to resolve criminal penalties. The Secretary of the Treasury may compromise any criminal liability arising under the internal revenue laws prior to the reference to the Department of Justice for prosecution or defense. 26 U.S.C. § 7122(a). An agreement…
OIC 131: Miscellaneous OIC Issues – Part 1
Miscellaneous Offer in Compromise Issues – Part 1. Attorneys are authorized to represent taxpayers before the IRS on collection matters, including an Offer in Compromise. IRM § 5.8.4.25(6) (05-10-2013). Taxpayers have a set of fundamental rights they should be aware of when dealing with the IRS. For more information, go…
OIC 132: Miscellaneous OIC Issues – Part 2
Miscellaneous Offer in Compromise Issues – Part 2. Attorneys are authorized to represent taxpayers before the IRS on collection matters, including an Offer in Compromise. IRM § 5.8.4.25(6) (05-10-2013). Taxpayers have a set of fundamental rights they should be aware of when dealing with the IRS. For more information, go…