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Max W

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    marintax@sbcglobal.net

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  • State
    CA
  • Gender
    Male
  • Interests
    Boston Red Sox, Spanish Civil War History. Flamenco Music & Guitar

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  1. @Catherine The Bataan Death March! What an analogy, but I doubt that anyone will be bayonetted for not showing up for work on Monday. I wonder how many people on this board even knows what it was.
  2. Dang! Just as I got the Fresno address memorized.
  3. Max W

    Form 2210

    If you are referring o the first time penalty abatement, the estimated tax penalty is not subject to abatement.
  4. Oh! This is a state audit! You didn't specify that, so I assumed it was IRS.
  5. I do not see what the fuss is about. I would guess that almost everyone on this board is already regulated by Circular 230. This legislation is aimed at the approx. 50% of the preparers that are not EA's CPA's or Tax Atts. The TPAO has been pushing for this legislation every year. From Forbes https://www.forbes.com/sites/irswatch/2021/05/14/bidens-plan-to-regulate-return-preparers-is-welcome-news/
  6. You are a long way from resolution. When the auditor makes the final report, you will have 30 days to accept or reject it. Do not accept it and let them know you want an appeal. This could take some time to schedule. Appeals is much more generous than the auditor. If you still are not satisfied, the case will be closed and then youwill be notified you have 90 days to file a tax court petition. This will lead to a higher level appeals meeting. Here the IRS will try to resolve the issues so that the case does not have to go to tax court.
  7. At that rate it will take over 4 months to process the rest before a slug of new returns come prior to the Oct deadline.
  8. Gosh, Oh golly, you mean the IRS made a mistake. What is this world coming to? The clients would be best advised to put the money in a separate bank account, because sometime within the next 3 years they may receive a letter from the IRS. "Dear Taxpayer, In August of2021 we sent you a refund check for $3000.00. We are sorry to inform you that the person who calculated your refund was suffering from apoxia due to prolonged mask wearing. Said person made an error in determining your refund, which we have found in its totality to be unwarranted. Please accept our sincere apologize for this, but we demand that the $3000.00. plus interest of $27.33 be returned to us within 15 days, or interest will continue to accrue. Furthermore, failure to pay could subject you to collection action including levying your bank account and garnishing your wages. Joe Potatohead, Supervisor of Dumbbells"
  9. Amen! Even the IRS is frustrated by divorces. I attended an IRS tax forum and sat in their presentation of OIC's. After the hour was up, a little group gathered around the speaker to ask him questions. One question concerned divorced couples. The reply was, "We wish that people wouldn't get divorced"
  10. I chose Hartford this year. Coverage $25,000 for $150; $1000 deductible. Also, you can pay with a down payment and quarterly or monthly payments.
  11. Max W

    OIC

    There are a couple of things here. 1. The IRS is not entitled to the $10K deposit as it is for business operating expenses. However, if your clients is like many SE persons and comingles his personal and business deposits in one account, you should show how that money is being spent buying materials. 2. The IRS can not levy your clients bank account while the offer is being considered and for an additional 30 days after the case is closed. This is supposing that the IRS has already completed the CDP (Collection Due Process) by sending out a series of letters notifying the client of Intent to Levy. BTW, the IRS does not "freeze" bank accounts, unless there is criminal activity involved. When they do levy/garnish, the bank has to hold the money for 21 days before before forwarding it to the IRS. During those 21 days it is possible to negotiate with the IRS to set up an installment agreement and sometimes even have some of the money returned.
  12. Max W

    OIC

    Are you saying you calculated his offer based on negative income? It looks like it because there $9k in assets attributed to him, so that would be the minimum that could be offered. Was proof of the assets presented with the offer? That can be presented at appeals, but it better be airtight proof. I suppose it is for financial reasons that you chose the 24 month option. I never use 24 months because it doubles the offer. I try to foresee all the problems that could be involved in a case before taking it for OIC. If I see too many hurdles to jump over I go for CNC, or IA.
  13. Max W

    OIC

    This OIC Specialist is way off base. The only time another person's income can be used is in the case of a liable spouse. There is an exception for community property states. "(A) In general. Where a taxpayer is offering to compromise a liability for which the taxpayer's spouse has no liability, the assets and income of the non-liable spouse will not be considered in determining the amount of an adequate offer." from USC 26 CFR 301.7122-1 (c) (ii) (A) Before the final report is issued, it has to be reviewed by a supervisor. That person is sure to catch it, especially if you send a note to be included in the file. Appeals is the last resort, but I don't think it will get that far. Anyhow, appeals is always more generous than the lower echelons.
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