Defunct partnership with taxes due


#1

Filling a Offer in Compromise for an individual but old defunct partnership stills owes money. Does this mean that there should be two offers or can it be worked in the one offer, and if so, how?


#2

Jon,
It would need to be two separate filings. Here is an excerpt from the form 656 instructions…

image

Hope this helps,
Jeff


#3

Good morning Jon!

By chance…have you had the opportunity to look at the underlying liability that the “old defunct partnership” is purported to owe?

Most times, prior to ever moving forward with an OIC engagement, I actively and vigorously check the validity of the “purported” debt to see if I can eliminate the problem without an OIC.

For example, in your case, could a first time failure to file penalty waiver be in order for the defunct partnership??

I hope that this helps! Please let me know if you have any questions!

Keith