Offer in Compromise - Viability


#1

My client currently has an installment payment plan with IRS and NY. Current monthly payments will take 20yrs to pay off current balances without any additional interest and penalties.We are preparing forms 433A and 656 with her 2017 income and expenses.Any suggestions on whether this approach is appropriate or not? Any suggestions if the above approach is not viable.


#2

I can’t tell you if an Offer is appropriate just based on “they will never pay it off”. If you prepare the 433-A OIC and use the form and National Standards-what does the financial show as ability to pay? Did you use the IRS online OIC tool? I don’t use it as I do many OIC’s, but it is a place to start.