How the IRS Has X-ray Vision on Offers in Compromise

How does the IRS have “X-ray Vision” when considering Offer in Compromise requests?  Well, the IRS can look at recent Form 1099s filed under the taxpayer’s account.  So, the IRS will then be asking what happened to certain bank or investment accounts which reported interest or dividend income in prior years (did the taxpayer dispose of those assets fraudulently, for … Read More

How Phantom Cash Flow Can Undermine Your Offer in Compromise

So, what is “phantom cash flow”?    And how does it affect an IRS Offer in Compromise?  Well, I’m not talking about making money under the table.  I am referring to the dreaded IRS “reasonable expense standards”.  Basically, these are the Census Bureau median amounts for variety expense categories, including Housing and Utilities; Food, Clothing and Miscellaneous; Vehicle Ownership Cost … Read More

3 Reasons to be Honest When Doing an IRS Offer in Compromise

An IRS Offer in Compromise can be a long and tricky process.  It can take up to two years for the IRS to consider your Offer, once it has been submitted.  Here are 3 reasons to be open and straight-forward. You are Filing the IRS Offer in Compromise forms under oath Yes, the IRS requires that you submit a long … Read More

IRS Offer in Compromise: The Basics

The most heavily marketed IRS collections program involves the Offer in Compromise.   Generally, this is based upon “Doubt as to Collectibility”.   So, let’s say however that you do have a viable offer and after doing all the calculations, the Offer amount is $10,000. How does the Offer in Compromise proceed and what are the steps?  Form 433-A and Form … Read More