Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-30-2018, 05:25 PM
Junior Member
 
Join Date: Jan 2018
Posts: 2
Offer in compromise deeper question

Hello all!

I am looking into an offer in compromise (OIC) and have some questions. I have not filed from 2012-2016. I spoke to an agent in collections w IRIS for quite some time the other day and she gave me the following info...They filed for me in 2012 (my biggest year in earnings obviously lol) and I owe slightly over 10k in that year. The other years; 2013 & 2014 around 3k, small refund in 2015, and just over 10k in 2016. In all about 26k owed in back taxes. I will likely owe 10k ish in 2017 as well due to 401k wd's. Owing 2016 & 2017 is due to large 401k withdrawals (ROUGH time in life personally and professionally). So in the end around 36k total? after filing for 2017 which I have yet to do. I asked her about an OIC and she said she didnt think I would get it but we never talked about my income vs debts, she was (i assume) just going off the fact that I am going back to the industry where I made good $ years ago and she could see my income from those years. She said just do the regular payments for 5ish years of $400+ per month. In regards to OIC: I have NO more assets such as 401k or anything else. A paid off car worth around $1500-2000, bank account $2000, rent $2,000, income from a job I am going to start in about a week, $4,000-$4,500 month. According to the IRS OIC prequalifier (for living in san diego) on their website, I am eligible for what seems to be their lowest dollar settlement of $2,000, up to around $5,000 depending what numbers I put in (adjusted income up as I may make slightly more, and adjusted rent down as I may move into cheaper place soon). My questions(s)>>>>
1)There is a chance I make decently more income in the next 3-6-12 months due to possible commissions/different role at my new job. The IRIS agent said they only check income in the very beginning (first couple of paystubs she said). Is this accurate? I don't want to get deep into this and then they ask for a paystub in 3-6-9 months upon finalization of OIC and I am making too much to qualify.
2) If i move (change address) after an accepted OIC, will that affect my accepted OIC (rent would likely be less)?

Thank you ahead of time!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-31-2018, 04:58 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,138
There is a chance I make decently more income in the next 3-6-12 months due to possible commissions/different role at my new job. The IRIS agent said they only check income in the very beginning (first couple of paystubs she said). Is this accurate? I don't want to get deep into this and then they ask for a paystub in 3-6-9 months upon finalization of OIC and I am making too much to qualify. =========>>An OIC allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. irs considers your unique set of facts and circumstances:Ability to pay;Income or etc;asfaras I know, There are two rules to follow when considering how your income could affect the success of your offer in compromiseThe first rule is that the IRS has no set rules that limit an oic to certain income levels. There are no earnings caps to the availability of an oic. Whether you make $25k or $250k, the IRS compromise guidelines will not, standing alone, make you ineligible for settlement. The second rule, though, is that the IRS does have living expense guidelines that limit how much you can spend to get to ?yes? in a compromise.the IRS says, go ahead and make $250k ? but if you spend it in a way that is different from what the IRS guidelines permit, your compromise could run into trouble.


2) If i move (change address) after an accepted OIC, will that affect my accepted OIC (rent would likely be less)?========>>as mentioned above, it depends.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 01-31-2018, 03:29 PM
Junior Member
 
Join Date: Jan 2018
Posts: 2
Arrow

Quote:
Originally Posted by Wnhough View Post
There is a chance I make decently more income in the next 3-6-12 months due to possible commissions/different role at my new job. The IRIS agent said they only check income in the very beginning (first couple of paystubs she said). Is this accurate? I don't want to get deep into this and then they ask for a paystub in 3-6-9 months upon finalization of OIC and I am making too much to qualify. =========>>An OIC allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. irs considers your unique set of facts and circumstances:Ability to pay;Income or etc;asfaras I know, There are two rules to follow when considering how your income could affect the success of your offer in compromiseThe first rule is that the IRS has no set rules that limit an oic to certain income levels. There are no earnings caps to the availability of an oic. Whether you make $25k or $250k, the IRS compromise guidelines will not, standing alone, make you ineligible for settlement. The second rule, though, is that the IRS does have living expense guidelines that limit how much you can spend to get to ?yes? in a compromise.the IRS says, go ahead and make $250k ? but if you spend it in a way that is different from what the IRS guidelines permit, your compromise could run into trouble.


2) If i move (change address) after an accepted OIC, will that affect my accepted OIC (rent would likely be less)?========>>as mentioned above, it depends.
Understood. that said, this prequalifier in their website flat-out tells you if you're even eligible for consideration, which with all due respect does not equate w what you are saying. https://irs.treasury.gov/oic_pre_qua...oQuestions.jsp

type, in what you make, type in what you spend for living expenses, and viola. you basically have to have very little left over after LEGITIMATE expenses. which they clearly outline what those are to them. that still doesn't answer my questions in my initial post of how often they check income during the OIC process?????



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Offer in Compromise question Lajazz947 Miscellaneous 3 11-03-2014 08:19 PM
Offer in Compromise: The Best Way for IRS Tax Debt Settlement rking Miscellaneous 2 01-26-2013 02:41 PM
AGI Question - foreign income question tikomh Income 1 04-09-2012 09:22 AM
2010 tax law changes offer expanded tax benefits for Special Charitable Contributions for Certain IRA Owners. TaxGuru General 0 01-29-2011 12:52 PM
Does California State offer an installment agreement? TaxGuru California 0 07-14-2009 12:25 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning