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Do you owe Money to the IRS
Brian D. Bailey Esq. • May 3, 2022
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Do you owe money to the IRS and are unable to pay the full amount?
If so you may be eligible to settle your tax debt for less than you owe. It´s called an Offer in Compromise or OIC. You can submit an offer by yourself or you can hire someone to help you.
What is an Offer in Compromise? Here is a brief explanation.
An Offer in Compromise or offer is an agreement between you the taxpayer and the IRS that settles a tax debt for less than the full amount owed. To be considered, generally you must make an appropriate offer based on what the IRS considers your true ability to pay.
If you click on the link below it will take you to the IRS website where you will find a playlist will lead you through a series of steps and forms to help you calculate an appropriate offer based on your assets, income, expenses and future earning potential
https://www.irsvideos.gov/Business/PostFilingIssues/OfferInCompromise
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The videos will walk you through the actual Form 656, Offer in Compromise itself, and go through a checklist to ensure you’re including everything you need to get your process to go smoothly. Before you start investing time to do the paperwork necessary to submit an offer, you’ll want to check out the IRS’s Offer in Compromise Pre-Qualifier Tool to make sure you’re eligible to file one. Find a link to this tool at www.IRS.gov/OIC You should be aware that: even though individuals and businesses can submit an offer, the tool is currently only available to individuals.
If you feel you meet eligibility requirements to submit an offer, the next step is to visit IRS.gov/OIC to download the most current Form 656-B (OIC), Offer in Compromise booklet. It is important to make sure you are using the most current year version of the booklet to avoid unnecessary issues with processing.
The booklet contains the OIC application form and other forms you’ll need to submit your offer whether you’re an individual or a business. The forms include: Form 433-A (OIC) Collection Information Statement for Wage Earners and Self-Employed Individuals Form 433-B (OIC) Collection Information Statement for Businesses Form 656, Offer in Compromise Note, this form is located at the end of the booklet, after the Forms 433-A & B (OIC)
It’s helpful to complete the information statement forms first, before you complete Form 656. Each of these forms helps you determine a potential offer amount based on your assets, income, expenses, and future earning potential.
Be sure to read the instructions in the booklet. Especially, the seven steps it lists as the application process.
There is an application fee to submit an Offer in Compromise and you must submit a down payment, unless you qualify for the low-income certification or submit a Doubt as to Liability offer. Check the most current OIC Form 656 B (OIC)to get the current fee.
If you or your business is currently in a bankruptcy proceeding, you are NOT
eligible to apply for an offer.
Also be aware that a separate application is necessary for each tax entity. For example, each individual taxpayer or non-sole proprietor business, such as a corporation or partnership, wanting to submit an offer for consideration needs its own application.
Note: If you are working with an IRS employee, let them know you are sending or have sent an offer to compromise your tax debts.
Before you send you package off review the information on www.IRS.gov simply use the search term “OIC.” You’ll want to review the Frequently Asked Questions most people have about offers and watch the Final OIC Package Checklist” video at the link posted above.
Finally, while this can all be very overwhelming it is something you can do on your own. However, if you would like the help of a professional give us a call at 859-236-8888
we do these for our clients frequently and would love to help you.
https://youtu.be/821a3P4fK84?t=8165 Check out our latest Joe Show Appearance here.
Check out our latest Joe Show appearance here. Brian discusses 5 star reviews, expert witness costs & why Pete rose should be in the Hall of Fame.
Check out Patrick's latest Joe show appearance here. https://youtu.be/npC-LTJ6dcE?t=12677
https://www.youtube.com/watch?v=86DwHBCoLp0#t=207m27s If the link doesn't automatically take to to the video . Please cut & Paste to you browser Hey everyone out there now you can see us during our appearances on the Joe Show. Click on the link here to see why my momma always said I had a face made for radio. And for my law school peeps listen close for a painful law school memory when we discuss the "Absence of Malice"
Our firm has a long history in Boyle County
Parents who are divorced, separated, never married or live apart and who share custody of a child with an ex-spouse or ex-partner need to understand the specific rules about who may be eligible to claim the child for tax purposes. This can make filing taxes easier for both parents and avoid errors that may lead to processing delays or costly tax mistakes. Only one person may be eligible to claim the qualifying child as a dependent. Only one person can claim the tax benefits related to a dependent child who meets the qualifying child rules. Parents can’t share or split up the tax benefits for their child on their respective tax returns. It’s important that each parent understands who will claim their child on their tax return. If two people claim the same child on different tax returns, it will slow down processing time while the IRS determines which parent’s claim takes priority. Custodial parents generally claim the qualifying child as a dependent on their return. The custodial parent is the parent with whom the child lived for the greater number of nights during the year. The other parent is the noncustodial parent. In most cases, because of the residency test, the custodial parent claims the child on their tax return. If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income. Tie-breaker rules may apply if the child is a qualifying child of more than one person. Although the child may meet the conditions to be a qualifying child of either parent, only one person can actually claim the child as a qualifying child, provided the taxpayer is eligible. People should carefully read Publication 504, Divorced or Separated Individuals to understand who is eligible to claim a qualifying child. Noncustodial parents may be eligible to claim a qualifying child. Special rules apply for a child to be treated as a qualifying child of the noncustodial parent. The custodial parent can release the dependency exemption and sign a written declaration or Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent for the noncustodial parent to submit with their tax return. This also applies to some tax benefits, including the child tax credit, additional child tax credit, and credit for other dependents. It doesn’t apply to other tax benefits, such as the earned income credit, dependent care credit or head of household filing status. For More information: Check out IRS Publication 501, Dependents, Standard Deduction, and Filing Information Whom May I Claim as a Dependent? If you have questions or need help navigating which parent gets to claim the children for tax purposes. Feel free to Give us a call at 859-236-8888.
It is with mixed emotions that we announce our very own justin Johnson has decided to take a position working as Assistant Commonwealth attorney for the 50th Judicial Circuit. We are sad to see him go but are comforted with the fact that we know he will bring his integrity and brilliance to this next chapter of his life and that maybe in some small way we contributed to that. Also we are proud to know that he will in a very real way be carrying on the tradition of this firm's founder Hon. George M McClure III by serving this area while ensuring both the victims and accused receive justice and fair play.
You may want to put on your shades. Patrick thinks the future looks that bright for the Danville School District
Check out Justin's latest appearance on the Joe Show
Both Patrick & Myself come from a long line of men and women who have bravely & honorably served this country. Both of our fathers George M McClure III & John L Bailey. Our Grandfather’s Dr. George M McClure Jr., Clarence E. Bailey and Claude L. Stacey. As well as many of our aunts, uncles and cousins have all bravely and honorably served this country some of them came home to take there place in society never really discussing their service nor asking for any special treatment because of it. Some came home in a box. draped in a flag, having paid the ultimate sacrifice. I never had the honor of serving myself. I had intended to serve. I even made the trip from Rockford Illinois to Great Lakes Naval base to take the ASFAB which I actually did very well on. However the day before I was going to sign my enlistment papers my father sat me down and said these words to me that forever changed the course of my life. He said “Son our family has done its fair share for King & Country go to college” I took my dad’s advice and I have honestly had a life that is greater than I could have ever imagined. But I have always felt a little guilty that I didn’t serve like most of the men in my family chose to do. Memorial Day is always bitter sweet for me, because I realize that I am in a very personal way the recipient of the sacrifices made by Generations of my family that served sacrificed and died so that I wouldn’t have too. I know I’m not the only one who has benefited from that type of sacrifice I know many of you out there reading this have stories that are very similar to mine. So tomorrow while we are all enjoying our hot dogs, hamburgers and mom’s apple pie let’s all take a moment to remember the ones that sacrificed so that we wouldn’t have too. Have a Happy and Thankful Memorial Day. ---- Brian
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