ILLMAS Posted May 12, 2010 Report Share Posted May 12, 2010 TP owes 13K, he has has a business but is not on the payroll because he is just able to cover the operating expenses, he has a rental property (worth $250K) that is paid off and has another on a short salen (worth 150K). Also, TP had an installment agreement back in 2008, but stopped making payments after the 1st one. From your experience, will the IRS accept an OIC for this TP? Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted May 12, 2010 Report Share Posted May 12, 2010 He will have a better chance if he takes the money to get an OIC and buys lottery tickets. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted May 12, 2010 Report Share Posted May 12, 2010 Not a chance. His net worth (assets less liabilities) FAR exceeds the amount due to the IRS. He should take out an equity loan against his real estate and pay it off. Lynn Jacobs, EA, FNTPI, NP Kenner, LA Quote Link to comment Share on other sites More sharing options...
jainen Posted May 14, 2010 Report Share Posted May 14, 2010 >>will the IRS accept an OIC for this TP?<< Frankly I'd be surprised if the IRS even let the short sale go through. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted May 15, 2010 Author Report Share Posted May 15, 2010 >>will the IRS accept an OIC for this TP?<< Frankly I'd be surprised if the IRS even let the short sale go through. agree 100%, I notified TP about this and for him to consult with his agent. Quote Link to comment Share on other sites More sharing options...
jainen Posted May 17, 2010 Report Share Posted May 17, 2010 >>will the IRS accept an OIC for this TP? << While he may not be a good candidate for an Offer in Compromise, he DOES seem to be a good client for a collections engagement. He has to deal with the tax lien somehow in order to sell the house, and he apparently has sufficient assets to get straight (and pay your fee!). We all get clients who greedily read the stories (ads, not news) about settling for pennies on the dollar. In reality, the IRS is far more practical. For a small amount like $13K, the disadvantages of an OIC are probably not worth it. Quote Link to comment Share on other sites More sharing options...
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