Have a Tax Question? Ask a Tax Expert
Hello and thank you for using Just Answer,Please accept my condolences on the loss of your spouse and then having to deal with IRS issues.Unfortunately, the IRS can seize assets and levy bank accounts if a taxpayer owes taxes.They will not take these actions though if you file the Offer in Compromise before they do levy your account.
While your offer is being evaluated:
The IRS will generally approve an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone. Before they can consider your offer, you must be current with all filing and payment requirements. It is good that you are attempting a payment plan because if the IRS ses that you can pay over time they will not levy accounts as long as you are current with the payments.
They also do not like to seize property but will if they cannot get a response from the taxpayer and the taxpayer does not setup and stick to a payment plan. Levies and seizures are a last resort and although they will place liens on property, that is just to protest the governments interest.
protest* sorry protect
Hi, let me know if you need more info.
Can you see the entire answer?
No, you will need to list all your accounts but not the checks you wrote.
They will want to see the checks because they would want to know where the money went. They want the statements from the last 6 months
Are you not going to let the tax attorney handle this for you?
Well it is always good to know what is involved. The 433 is to show your accounts and assets as well as to calculate your expenses
The IRS uses this to see how much you can pay and if your offer is reasonable based on your assets and expenses
No they usually would not ask for the money back unless they can show that it was an attempt to hide it from the government
They look at the asets to see IF you sold them could you pay your debt. This allows them to see iff your offer is reasonable. It does not mean they require you to sell them
Did you have more info to ask about
If the trust if for your son and his then the IRS would not count that for you
Just make sure you divulge every asset to your attorney so they are never surprised by the iRS and you should be OK
You would need to be the beneficiary of the trust for it to count
They certainly want to see if after the debt collection started did the taxpayer start moving money out of accounts in an attempt to hide it, so if that is what you mean by verify then yes
Yes, it is very much like an audit. They would verify if amounts were actually received by the persons that are on the checks.
I was not implying you were hiding but just wanted to let you know that is one thing they would always look for
The process is not as scary as it seems. You did well to retain professional help.
As long as you are in a pyment plan they will not seize assets or levy your accounts. I hope you and your son can continue with happy times now.Rating the assistance is a very important part of Just Answer. Just Answer uses positive ratings and the follow up survey to ensure that experts are available for assisting and answering questions.
92 percent of offers processed by our Centralized Offer in Compromise sites are currently closed within six months or less.
The above is directly from the IRS on processing times
While they process they suspend collections
It could or less
That very well could be. The key to a successful Offer in Compromise is making sure that the IRS can process your application, and that you submit complete backup documentation to support your offer.
It is the taxpayer that does not complete the paperwork properly that has the problems, that is why I said you did well to get the professional help.
Penalties can be abated but interest is not generally under abatement unless the IRS gave written advice that was bad.
The facts surrounding your spouse would be reason for abatement of penalties.
It may be less, it all depends on how quickly they can verify the info. You must continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
Good, then you early morning CHAT was worth it.
Rating the assistance is a very important part of Just Answer. Just Answer uses positive ratings and the follow up survey to ensure that experts are available for assisting and answering questions.
Your rating of the assistance releases me.
Were you presented with the rating options? They go from (I think) Bad to Excellent