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socrateaser, Lawyer
Category: Tax
Satisfied Customers: 38910
Experience:  Retired (mostly)
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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 to the IRS the IRS allows one to use IRS allowed standards without providing proof of actual expenses. How does the state of Utah work? If a family has 4 members can they elect to use IRS allowed expenses for the state of Utah OIC for items like food, medical, etc? Or does the state of Utah require actual expenses?
Submitted: 5 years ago.
Category: Tax
Expert:  socrateaser replied 5 years ago.
You appear to have asked this question twice. Are you looking for a second opinion?
Customer: replied 5 years ago.
Strange. The question I thought I had typed was whether or not a dependent's social security income had to be counted as part of the taxpayer's income.
Expert:  socrateaser replied 5 years ago.
I'll take that as a "yes."

I have searched substantially all of the Utah Code, case law, Administrative Code and Tax Administration publications, bulletins, etc., and I cannot find a single word about the use of the IRS allowed expenses tables in constructing an offer in compromise. The state tax booklet on OICs suggests that each expense must be accompanied by a statement justifying that expense. It would seem to me a pretty reasonable justification that the expense is no more than what the IRS would allow in its own OICs. However, the "justification" language also suggests that Utah tax examiners are willing to entertain justifications that would not meet the IRS requirements -- otherwise, the booklet would flatly state that the IRS allowed expense requirements must be followed.

Hope this helps.

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