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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4310
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I have a tax question concerning an offer in compromise for

Resolved Question:

I have a tax question concerning an offer in compromise for the state of Utah.

In making an offer in compromise and filling out form TC-805 for the state of Utah, am I required to list Social Security Disability Income as any part of my income for the offer?

If I have a dependent on Social Security Disability Income, am I required to include his Social Security Disability income?
Submitted: 4 years ago.
Category: Tax
Expert:  PDtax replied 4 years ago.

PDtax :

hi from just answer.

PDtax :

The TC-805 mirrors the Federal 433-A. Their intent is similar; what resources does the taxpayer have, and what can we reasonably expect the taxpayer can pay us.

PDtax :

The form specifies 'other' sources of income, so I would tell you it must be disclosed. Same with the income of a dependent in your home.

PDtax :

The good thing is the expenses on the opther side of the page are based on those income amounts, so things like housing, food, etc. are often based on your income and the number of people in your household.

Customer:

the 433-A allows one to use "IRS allowed expenses" and not provide receipts for food, etc. Are we allowed the same? can we claim IRS allowed expenses for the state?

Customer:

state of Utah that is?

PDtax :

http://tax.utah.gov/forms/pubs/oicbooklet.pdf is a link to their Offer in Compromise booklet, which is the starting point for your negotiations.

PDtax :

I would try to use the IRS National Standards for housing, food, utilities, etc. as they are often higher than the out-of-pocket expenses you have. I did not see definitively that you couldn't, so I would apply that way.

Customer:

the IRS is very picky about not allowing you to use more than the standards. If our out of pocket exceed IRS standards do you think the state would let us use the higher amount?

PDtax :

yes, and submit your receipts with those line items.

PDtax :

is there anything esle I can help with?

Customer:

no. thanks.

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