Discussion:Offer & Compromise Question
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| Revision as of 20:22, 5 February 2009 Johnbroylescpa (Talk | contribs) (Had similiar sit) ← Previous diff |
Revision as of 22:07, 5 February 2009 Dingodile (Talk | contribs) (I'm disappointed) Next diff → |
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| {{ForumReplyPost|UserID=Johnbroylescpa|Date=February 5, 2009|Text=Had similiar situation three years ago here in SC. Lady came in and hadn't filed for 3-4 years, had taken earlier distributions from her IRA accounts, and paid nothing in. Balance owed was around $40k. At time, she was dating and a live in girlfriend of a local dentist, had no job. Her only job was to work out at gym daily, and look pretty. So we did an OIC, claimed she had no job, no income, couldn't borrow from any family, friends, etc. and that the IRS should settle it. This was all of course before the requirements of sending in large fees and a portion of the tax owed. Thing goes round and round for over a year with IRS requesting revised schedules and additional information (waiting it out), and then girl decideds to get married to dentist. Then IRS refused to settle anything. Only way I know to do it is let the debts get old and cold, and file a chapter 13 or 7 bankruptcy. Not a good solution, but that is my experience for what its worth. }} | {{ForumReplyPost|UserID=Johnbroylescpa|Date=February 5, 2009|Text=Had similiar situation three years ago here in SC. Lady came in and hadn't filed for 3-4 years, had taken earlier distributions from her IRA accounts, and paid nothing in. Balance owed was around $40k. At time, she was dating and a live in girlfriend of a local dentist, had no job. Her only job was to work out at gym daily, and look pretty. So we did an OIC, claimed she had no job, no income, couldn't borrow from any family, friends, etc. and that the IRS should settle it. This was all of course before the requirements of sending in large fees and a portion of the tax owed. Thing goes round and round for over a year with IRS requesting revised schedules and additional information (waiting it out), and then girl decideds to get married to dentist. Then IRS refused to settle anything. Only way I know to do it is let the debts get old and cold, and file a chapter 13 or 7 bankruptcy. Not a good solution, but that is my experience for what its worth. }} | ||
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| + | {{ForumReplyPost|UserID=Dingodile|Date=5 February 2009|Text=I'm disappointed by the responses in this thread. This is a professional forum and I would suggest the more professional approach would have been to either ignore the question or instruct the original poster to research IRS Publication 656. | ||
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| + | I understand the frustration that arises when it appears someone is asking us to do their work for them (especially someone who does not appear qualified to do the work in the first place), but if our goal is to dissuade this type of post we shouldn't be providing the answer they seek while criticizing the poster with the same breath or keystroke. It simply encourages these undesirable posts and creates a hostile environment. | ||
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| + | Sorry to get on my soapbox here. | ||
| + | }} | ||
Revision as of 22:07, 5 February 2009
Discussion Forum Index --> Advanced Tax Questions --> Offer & Compromise Question
Discussion Forum Index --> Tax Questions --> Offer & Compromise Question
| 4 February 2009 | |
| Situation,
Client single until 2008 when she married. She had not filed past tax returns. Long story short IRS caught up with her, she used an agency to settle the deal for older returns(99-03) of about $5000. **She was single during this time period and owned her own business** Agent denied the $5000 offer and is looking at the combined income for 2008 of her and her spouse (remember she got married in 2008), but the offer is for prior year tax returns when she was single and based soley on her income. Agent wants new amount to be roughly $12,000. Client brought this in last night and has until 2/23 to decided. Question - Can someone point me in the direction of some case law on them looking at the comibined income of both husband and wife for the sins of the wife before they were married. (Also this is occuring in a community property state) Any guidance or suggestion on how you think the agent dreamed up the $12,000 based upon a net income from her of 23,000 for 2008 and 95,0000 in 2008 for him? Any help is appreciated | |
| 4 February 2009 | |
| I think it has to do more so with the ability to pay, rather than the past sins of a spouse. Her husband, while not responsible for her past tax debt, can assist her in paying the settlement. It all comes down to current household income. | |
| 4 February 2009 | |
| Why would the IRS look back to her old financial situation when she currently has the ability to pay? Would you accept a client's argument that since he didn't have money last year, he can't pay you for last year's bill? Especially in a community property state - half of his income is hers now. | |
| 4 February 2009 | |
| First of all, it is not possible to give you any clue about the adequacy of the Offer without a look at her 433-A or how the IRS Officer came up with $12,000 without mind reading abilities or a detailed analysis from the Officer. I do have mind reading abilities so I would need the name and location of the Officer within about 100 yards.
To the other question - the new spouse is not liable for the taxes but the marriage does reduce some allowable expenses due the client. The reduction of allowable household expenses alone due to the marriage could easily account for an additional $7,000 being added to the offer. When a client gets married during the offer process, they deserve to have the offer rejected out of stupidity. | |
| 4 February 2009 | |
| Add new meaning to the marriage vow, "for richer or for poorer." | |
| 4 February 2009 | |
| I really thought that IRSfixer would also lambast the OP for using the wrong term 'offer & compromise' instead of offer IN compromise | |
| 4 February 2009 | |
| It bugs me a little...okay more than a little...MUCH more than a little, that the original poster has chosen to do NO research whatsoever and start by posting here. A simple search of the IRS form 656 (use Google and put in IRS form 656) would have answered a majority of the questions. So, start there and do your own work....not to mention Kevin's post that if you don't know the freaking term you shouldn't be representing ANY clients. | |
| 4 February 2009 | |
| 'Nuther thought...if the couple lives in a community property state, part of the husband's income IS subject to seizure to pay wife's premarital debts unless they entered into, and filed, a prenuptual agreement. They didn't, of course...lawyers cost money, you know... | |
| 4 February 2009 | |
| The post says it IS in a community property state. All the more reason why the poster needs to do his/her own homework first. | |
| 4 February 2009 | |
| Kevin, I guess I have seen it misused so often I am just not sensitive to it anymore. I am more bothered by the "professionals" posting here who cannot spell, capitalize, etc., and who think that teenage text message shorthand is appropriate in a professional forum. There are others who cannot properly state a question to get a meaningful answer. Then, as Steve points out, there are those who use this forum as their only source of "research". Some of the questions are so basic that it makes me shiver at the thought of them preparing returns or advising anyone. | |
| 4 February 2009 | |
| ...you mean they won't be sharing their fee with all of us that post an actual response cause if they are, I'll post a full answer. | |
| 4 February 2009 | |
| New hubby married a tax lien. I have had a few cases like this and recommend putting the offer before the ceremony. | |
| 5 February 2009 | |
| Thank you for all that helped with relevant answers and comments. I apologize for any spelling or grammatical errors in my post. I really was not shopping for a quick answer to my problem. As I stated in my post I was looking for case law or a place to do my own research on the problem. It was not my decision to take on the case, but was given to me to work on. I do not decide which clients are accepted. I assume everyone here started with limited knowledge and worked through various scenarios, case law and tax code to develop their extensive knowledge base. For those of us who what to broaden and expand our knowledge base, I assumed this was the place to achieve that. I realize now after several irrelevant posts to the question that this is not that place. | |
| 5 February 2009 | |
| That's NOT what you said. This is not a case law question. It's a simple question that should be known by ANYONE doing rudimentary collection representation. As I correctly noted, the answer is right in the IRS Offer in Compromise instructions.
| |
| 5 February 2009 | |
| Steve, it is not Mm's fault that his/her boss didn't read the instructions to Form 656 and sent her here instead of doing his own homework. Imagine how stupid the boss will feel when he tells the client that he never read the instructions to the form!!! | |
Johnbroylescpa (talk|edits) said: | February 5, 2009 |
| Had similiar situation three years ago here in SC. Lady came in and hadn't filed for 3-4 years, had taken earlier distributions from her IRA accounts, and paid nothing in. Balance owed was around $40k. At time, she was dating and a live in girlfriend of a local dentist, had no job. Her only job was to work out at gym daily, and look pretty. So we did an OIC, claimed she had no job, no income, couldn't borrow from any family, friends, etc. and that the IRS should settle it. This was all of course before the requirements of sending in large fees and a portion of the tax owed. Thing goes round and round for over a year with IRS requesting revised schedules and additional information (waiting it out), and then girl decideds to get married to dentist. Then IRS refused to settle anything. Only way I know to do it is let the debts get old and cold, and file a chapter 13 or 7 bankruptcy. Not a good solution, but that is my experience for what its worth. | |
| 5 February 2009 | |
| I'm disappointed by the responses in this thread. This is a professional forum and I would suggest the more professional approach would have been to either ignore the question or instruct the original poster to research IRS Publication 656.
I understand the frustration that arises when it appears someone is asking us to do their work for them (especially someone who does not appear qualified to do the work in the first place), but if our goal is to dissuade this type of post we shouldn't be providing the answer they seek while criticizing the poster with the same breath or keystroke. It simply encourages these undesirable posts and creates a hostile environment. Sorry to get on my soapbox here. | |
