Advanced Handling of OIC & Bankruptcy
IRS Attorney in Chicago & Serving Clients Nationwide
A client with significant assets may receive better treatment in or OIC then in a bankruptcy. IRS uses quick sale value (80%). If you have issues that may complicate your Offer in Compromise, let our Chicago tax lawyer help you today.
Pension Plans in an OIC
- A pension Plan with no present Right To Receive Funds Has NO VALUE
- An IRA, 401(k) or KEOGH Plan is Treated as Having the Value at the Time the Offer is Filed
- Exception: If the taxpayer intends to use the funds toward the offer, then use value after deducting taxes and penalties
Business Offers
- Business OIC’s for ongoing businesses are difficult
- Particularly payroll taxes; IRS does not want to give one business an advantage over another
- Difficult at the offer specialist level; somewhat relaxed at the appeal level
2 Policies When Submitting Business OIC’s
- Business must be current for 2 quarters for payroll taxes
AND
- Principles of the business must be current on their obligations to file quarterly estimates or be current on their withholding
Dissipated Assets
- Assets liquidated shortly prior to an OIC where the proceeds did not go to the IRS.
- EXAMPLE: Cashing in an IRA and using the money for other debts.
No matter what you may be facing, Attorneys Tax Relief, LLC can help. Call our Chicago tax relief lawyer at (800) 261-6671 today. We serve clients across the country!
