Navigating the complexities of tax resolution can be challenging for even the most seasoned CPAs, tax professionals, and enrolled agents. One critical area of expertise is the Offer in Compromise (OIC), a powerful tool that can significantly benefit your clients when used effectively. In this comprehensive article, we’ll share valuable Offer in Compromise Tips to enhance your understanding of the OIC process and empower you with the strategies necessary to achieve favorable outcomes for your clients. Join us as we delve into the intricacies of OIC, exploring best practices, pitfalls to avoid, and innovative approaches that will elevate your tax resolution services and set you apart from the competition.
The IRS offer in compromise program has been revised over the past year. It was revamped when the IRS announced the Fresh Start initiative in 2011. Since then the forms have been changed a couple of times. Thanks to professionals that advocate for tax payers and tax resolution issues, we have seen some taxpayer friendly changes made to the forms. The IRS has revised the 433 series forms to include some of the changes that were left off the form. More tax professionals that were not specializing in tax resolution services may opt to help their clients navigate the collection process the clearer it gets.
One change was the $1000 allowed in the taxpayers bank account was not being subtracted. So this one change could save $1000 per offer. However, they didn’t update the form with the exemption of one months allowable living expenses. If your client has money in the bank and is making an offer to the IRS the form doesn’t show this allowance. You will have to subtract this amount out and explain why you left it off in order for the IRS revenue officer to consider it. This could save your clients thousands of dollars. For more tips and tricks to form 656 offer in compromise and the 433 series for collection financial statements join us at IRS Solutions.
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