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Old 10-30-2014, 01:42 PM
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Offer in Compromise question

Hello,

After the 2007/2008 meltdown I was granted an Offer in Compromise and was making payments when I was notified that I was being audited.

They said that the OIC was therefore no longer acceptable.

Is this true? I am fighting the new figures as per the audit but the review is not completed yet.

If I have to I will file a new OIC because while things have gotten much better there is no way that I can meet the old or the new obligations.

Advice?

Thank you so much.



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Old 11-01-2014, 03:22 AM
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Quote:
Originally Posted by Lajazz947 View Post
Hello,

After the 2007/2008 meltdown I was granted an Offer in Compromise and was making payments when I was notified that I was being audited.

They said that the OIC was therefore no longer acceptable.

Is this true? I am fighting the new figures as per the audit but the review is not completed yet.

If I have to I will file a new OIC because while things have gotten much better there is no way that I can meet the old or the new obligations.

Advice?

Thank you so much.
After the 2007/2008 meltdown I was granted an Offer in Compromise and was making payments when I was notified that I was being audited.They said that the OIC was therefore no longer acceptable. Is this true? ===no; offer in compromise may be an option for you to settle this IRS debt. Interest continues to accrue on your liability while your OIC is being evaluated/audited. But most collection actions will be suspended while your OIC is being considered.You are not eligible if you are in an open bankruptcy proceeding. With an OIC, the IRS and the taxpayer agree to settle the taxpayer's debt for less than the amount of taxes owed, even after an audit.

If your offer is rejected .You may appeal a rejection within 30 days using Request for Appeal of Offer in Compromise .
I am fighting the new figures as per the audit but the review is not completed yet. If I have to I will file a new OIC because while things have gotten much better there is no way that I can meet the old or the new obligations.========>>possibly.in principle, once the IRS audits you, it compares your tax return against your records to see if you have underpaid your taxes. If they find an underpayment, then, needless to say, you will have to make arrangements with the agency to bring your account current. The irs will also levy penalties and interest, although you may be able to have them reduced or even eliminated. as the IRS completes your audit, you get a final statement showing what you owe. However, you don't owe the taxes as of the date of the audit. However, you owe the taxes from the date that you should have paid them. In general aslongas the audit comes 3years after you should have paid the taxes, you'll be billed for the taxes as well as three years' worth of penalties and interest. Furthermore, penalties and interest will keep accruing after the audit until you pay off your balance in full. If you are audited on the same items two years in a row with no additional taxes due, the IRS manual actually recommends that you not be audited for the same items for another year.



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Old 11-03-2014, 07:23 PM
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Question

Quote:
Originally Posted by Wnhough View Post
After the 2007/2008 meltdown I was granted an Offer in Compromise and was making payments when I was notified that I was being audited.They said that the OIC was therefore no longer acceptable. Is this true? ===no; offer in compromise may be an option for you to settle this IRS debt. Interest continues to accrue on your liability while your OIC is being evaluated/audited. But most collection actions will be suspended while your OIC is being considered.You are not eligible if you are in an open bankruptcy proceeding. With an OIC, the IRS and the taxpayer agree to settle the taxpayer's debt for less than the amount of taxes owed, even after an audit.

If your offer is rejected .You may appeal a rejection within 30 days using Request for Appeal of Offer in Compromise .
I am fighting the new figures as per the audit but the review is not completed yet. If I have to I will file a new OIC because while things have gotten much better there is no way that I can meet the old or the new obligations.========>>possibly.in principle, once the IRS audits you, it compares your tax return against your records to see if you have underpaid your taxes. If they find an underpayment, then, needless to say, you will have to make arrangements with the agency to bring your account current. The irs will also levy penalties and interest, although you may be able to have them reduced or even eliminated. as the IRS completes your audit, you get a final statement showing what you owe. However, you don't owe the taxes as of the date of the audit. However, you owe the taxes from the date that you should have paid them. In general aslongas the audit comes 3years after you should have paid the taxes, you'll be billed for the taxes as well as three years' worth of penalties and interest. Furthermore, penalties and interest will keep accruing after the audit until you pay off your balance in full. If you are audited on the same items two years in a row with no additional taxes due, the IRS manual actually recommends that you not be audited for the same items for another year.
Thank you for your answer but I might have missed something.

I had already applied for the OIC and it was accepted.

In the MIDDLE of my making payments they told me that the originally accepted offer was no longer value DUE to the audit.

I am told that no, they should have continued accepting my payments.

I don't want to file another OIC, I just want to pay my originally accepted OIC.



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Old 11-03-2014, 08:19 PM
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Quote:
Originally Posted by Lajazz947 View Post


In the MIDDLE of my making payments they told me that the originally accepted offer was no longer value DUE to the audit.

I am told that no, they should have continued accepting my payments.

I don't want to file another OIC, I just want to pay my originally accepted OIC.
As I said, No.I do not think so; The first contact that you who needs an OIC will generally have with the IRS is on audit.it is still available. the IRS properly terminates an OIC where a taxpayer fails to comply with the terms of the agreement .for example, once your Offer in Compromise has been approved, you need to make sure the IRS does not revoke your Offer. At all costs, make sure that you file your taxes on-time for the next five years; if you cannot file by April 15th, you ,may request an automatic extension. and definitely file your taxes by the extension deadline; pay your taxes on-time. If you owe, your taxes must be paid in full by April 15th;also you need to make estimated payments or extension payments to make sure you don't have a balance due.If the IRS revokes your OIC, they will reinstate the full amount of your tax liability, add on penalties and interest, and begin aggressive collection efforts. Pleae contact the IRS for more info in detail on your issue. On the contrary,,the IRS may also indicate that it will revisit the payment terms of already negotiated offers for taxpayers experiencing financial hardship during the recession.



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