basic questions

Hello - and thanks for reading! I am a CPA who has been on the tax side for 25 years and I am new to the tax resolution area. I have a couple of clients who, knowing that I have not done this before, have asked me to assist them anyway.

First question - the Canopy software says that the client does not qualify for OIC due to equity in assets, however they do qualify as Currently Not Collectible. Is there a separate form to fill out for this? Or do we send in the OIC form 433-A, and when they see that their expenses exceed their income, the IRS will consider it not collectible?

Second questions - new client that i am about to start the process owes over $100,000 going back to 2013. He is curious if he should make payments now or if he should not and wait to see what happens with the OIC. Anyone have a suggestion on that. I think that he was considering paying $50/week or something.

Sorry for the questions - i just want to guide my clients in the best way possible.

Comments

  • jeffrey.mcnealjeffrey.mcneal Posts: 50 admin

    Hi Traci!
    Q1: There is no form for a CNC request. For a financial hardship request, you will need to submit the 433-A (with supporting documentation) and a cover letter/executive summary explaining why you are seeking CNC. Take a look at the IRM 5.16.1.2.9- Hardship
    https://irs.gov/irm/part5/irm_05-016-001r

    Q2: Can you clarify the situation? The client filed an OIC. While he is waiting for a determination, he is considering making payments? Did he file a lump sum cash offer (5 or fewer payments) or a periodic payment offer (monthly payments made while the offer is being considered)?

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