OIC - Late Current Year Estimated Payments impact on OIC


#1

Any suggestions as to when to submit the OIC. Offer is ready to mail; however, taxpayer has not made any 2018 estimated tax payments yet. Taxpayer will start making 2018 estimated payments now, and hopefully have paid in the total 2018 tax liability by the end of the year. Any concerns with IRS not accepting the offer if the estimated payments are paid late (Q1 & Q2 missed). Any suggestions as to best solution to resolve?

FYI - T/P was on I/A, but defaulted as 2017 had balance due. We will either reinstate I/A or submit OIC.
Any suggestions would be greatly appreciated.


#2

Doug,

You can send the OIC in…but prior to acceptance you will have to show that Estimated Tax Payments have been made and are adequate.

Also, if the Taxpayer does not have the money to pay any balance due at 04/15/2019 #BiGTrouble

5.8.3.6 (02-09-2018) Perfecting Offers

5.8.3.6 (02-09-2018)

### Perfecting Offers

  1. Prior to beginning an OIC investigation, certain critical errors must be corrected to perfect the offer. The Combo letter on the AOIC system is designed to communicate with the taxpayer and/or their representative to request the necessary corrective action. If there is no response to the request letter, the OIC may be returned with no further contact. A return for failure to perfect an offer does not require a Form 1271, Rejection Memorandum . The taxpayer has no appeal rights when the offer is closed as a return. The following errors must be corrected before beginning the investigation:
  • The Form 656, Offer in Compromise is missing a signature.

Note:

A faxed signature is acceptable.

  • Form 433-A(OIC) and/or Form 433-B(OIC) is missing, blank, partially completed, or unsigned.

  • Balance of any TIPRA shortfall due at the time of submission.

  • The offered amount is blank or zero, unless terms are present.

**Requesting required estimated tax payments from self-employed taxpayers.

** * Requesting Federal Tax Deposit (FTD) payments when appropriate.**

  • Signature is missing on a required tax return received with the offer. If applicable, take the following actions: If the unsigned tax return is an original or a copy, and your research provides no evidence the tax return has been filed, make a copy for the case file. Return the original or unsigned copy of the tax return to the taxpayer with a request that: if the tax return was recently filed (within 60 days prior to offer submission), provide the date of mailing, or; if the tax return has not been filed, to electronically file, or sign and file the paper return in the appropriate location. Request that the taxpayer provide to OIC the date the return was filed. If the taxpayer does not respond to this issue, prior to returning the offer, internal research must be completed to determine if the required tax return has been received for processing.

I hope that this helps! If you have any questions or if I can be of assistance please let me know!

Thanks!

Keith
TheCPATaxProblemSolver
Keith@KeithJonesCPA.com
KeithJonesCPA.com


850-340-0828


#3

Thank You.
We will submit the OIC and instruct the t/p to start & continue making est. pmts. for 2018.