Offers In Compromise

I was looking for some information on payment to the IRS and I found some very useful information on the website of Joe Mastriano CPA, here’s a interesting quote from his website at www.taxproblem.org:

Offer In Compromise – Non-Liable Parties – Form 656-A & 656-B

Offers filed at the Internal Revenue Service Offer in Compromise division will be examined to determine the taxpayer’s ability to pay the tax liabilities.The 433a form must be filled out showing the income and expense of the parties living in the taxpayer’s household. So even if you live with someone who does not owe any of the tax that is the subject of the offer you are filing, the IRS needs to know their income. These “non-liable” parties will never be responsible for your taxes by signing the 433a. They are responsible for correctly stating their income and expenses on the form. Living with someone who makes more money than you do, can greatly limit the tax reduction that you are seeking by filing an offer. The offer division has a form for splitting your income that you can use. There is now a form 656-A and 656-B separating the instructions.

Offer In Compromise – Dissipated Assets And Doubt As To Ability To Pay

This is a great way for the offer division to add additional income to your offer. The original purpose of an offer based on “doubt as to ability to pay” was to see how much they can collect from you over the next 5 years or so. Offer payment periods can run till the end of the statute of limitations on collections for the years in question. The formula is based on the assets you have, and your available monthly income. Dissipated assets are assets that were in your hands and were sold or otherwise transferred. If you had any in the last approximately 6 years, and didn’t pay any tax liabilities you had, past or present, the IRS will add back the value of the assets to the amount you have to pay. I had a case where the taxpayer gave a house worth $20,000 to his elderly mother to live in, six years prior to filing the offer. The offer division added $20,000 to the offer amount calculated from the two part formula discussed above!

If you need more information on offer in compromise you should search our site.

Offer in Compromise – Don’t Break It After They Finally Accept Your Offer

You must follow all the rules about timely filing and paying your taxes, according to the IRS “special” rules, as I’ve discussed elsewhere on this site. Your offer payments must also be made timely and for the correct amount. I know of two former clients who had their full tax liability reinstated because of owing personal taxes when they filed their next 1040 personal tax return.

I love this guy’s website, all you need to know about taxes and the IRS is available freely on his website, and he also has a comment section where he provides quick tips and advice to his users. I needed to learn more on IRS offers so I called his secretary and arranged a one hour paid consultancy so he can go over my situation and give me some advice.