Business Assets in Individual OIC

Technical topics regarding tax preparation.
#1
Mbryson  
Posts:
11
Joined:
9-Sep-2021 2:34pm
Location:
Austin, TX
Getting conflicting answers on an issue that I assume is somewhat common. TP has a personal liability for not-withholding enough for a few years (W-2). TP has a side gig he runs by himself and files 1120S (always current). Now, TP wants to file OIC for the personal liability.

My understanding is that a 433-B is NOT required. All the TP would need to do is to put the net monthly business income on the 433-A and provide a supporting doc like an income statement. The TP would not need to calculate the business equity and include amount as part of their RCP. IRM section 5.8.5.26 refers to "value" of the interest which I guess is why some Offer Specialists argue that I need to provide business equity.

Thoughts?
 

#2
Posts:
2657
Joined:
28-Apr-2021 7:00am
Location:
FL
I'm thinking I'd prefer to not only include the 433-B, but I'd also get an installment payment arrangement before filing the OIC.
Steve
 


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