I recently submitted an OIC to the IRS. My question is if the offer amount and terms that I offered is not enough, will the IRS make a "counter-offer" or will they just flat out reject the whole OIC?
If you did your math, it will be accepted. otherwise start over from scratch with some update info and offer #. FWIW i had $0 assetts, owed 42K and paid $8K (within 90 days) with a $600/month car payment and $1000/month apartment and child support. $8K was less than the original taxed amount and definitely less than all that interest. nothing was ever put on my report except THEY CHECK EXPERIAN! DON'T LIE! they will see your debts and loans/etc. They may check property and vehicle registration too! good luck. i was shocked to see they wanted $8K on 42K when they could have easily said $16 over 10 years in payments. but i guess a bird in the hand... (i had 9.5yrs left on the oic SOL ,btw)
I am an Enrolled Agent licensed by the IRS to represent taxpayers, and in my practice I specialize in Offers in Compromise. First: COIC will look for the following in your Form 433-A and will verify the information like this: 1. They will run a Kelley Blue Book on each of the vehicles you list, and will run a MVR report in your state to see if there are nay vehicles you didn't list. tehy will also runa Coast Guard search for any boats and FAA search for aircraft. 2. They will run a title search for real estate in your State (not just County). be prepared to explain any sales made in teh last TEN years. Yes, they have a 10 year look-back on real estate sales. 3. The Minimum Acceptable Offer is the sum of two numbers. The first is the Quick Sale Value of all your assets. QSV is generally 80% of Fair Market Value. Cash, securities and bank accounts are counted at 100%. The second is the monthlky disposable income you have as determined by an IRS formula. Multiply this amount by 48 for cash offers and by 60 for deferred payment offers. 4. The percentage of tax debt being repaid has absolutely nothing to do with the amount the IRS will accept. I have had offers accepted where the taxpayer offered less than 1/2 of 1% of the tax debt.
Thank you for the response. I made a small calculation error on my offer where I offered $113 less than I should have on my offer, and concerned that over $113 that they will reject or if they will couter offer with that figure in mind. I just sent to them like 12 days ago and they just sent me a letter just asking for me to send them a brief statement on my work history, education and health... Is this a positive thing that they responded back and only asked for this information??
Re: Re: IRS OIC Question They are trying to assess your future earning capacity - to see if your income should go up in thw future (and they will factor that increase into your Offer to be paid NOW. Over $113 they should just make a counter-offer with their AET (Asset-Equity Table) showing how they came up with the counter-proposal amount. Be careful, they like to extend payments way beyond the Statute of Limitations on Collection. I had one recently where they used a multiplier of 155 in order to assert the taxpayer could full-pay (remember - IRS pubs use a multiplier of 48 for cash offers and 60 for deferred payment offers).
Re: Re: IRS OIC Question Thank you. On the "potential" counter offer, I originally offered the cash offer (paid within 90 days) , but on their counter offer will they offer a counter on a 90 day cash offer AND a deferred option to give me a choice? Sorry to ask so many questions.
