Selecting Between Resolution Alternatives


#1

Hi, All.

I see that the Analytics section in Canopy shows the impact of an OIC, Installment Agreement, or Currently not Collectible status.

My questions are: Can a client qualify for more than one alternative at the same time? If so, does the software help us select which is preferable? Lastly, does anyone have suggestions about how to go about selecting which alternative (OIC, Intallment Agreement or CNC) is best for any given set of facts?

Thank you!!


#2

Hey Gary,
The software simply calculates the numeric computations to provide guidance as to possible resolution scenarios. At the end of the day, it is up to the practitioner to use his/her judgement, experience, and financial acumen to make suggestions to their clients. In many cases, clients will qualify for more than one outcome. From my perspective, the process should be: What is the ultimate outcome I am seeking and how do I get there? So, for example, my client’s financial situation requires a lot of documentation that will take me some time to get an OIC put together. I need to use one of the other items to put a stop on possible short term collection until I have completed the OIC.
Hope this helps getting you going in the right direction.
Jeff


#3

The software shows the taxpayer can either do CNC or OIC. Taxpayer has a long way to go on the Statute of Limitations. Any thoughts as to how to select between the two of them?


#4

Due to the length of the CSED, an OIC may be challenging, as the IRS will believe they can collect the amount prior to expiration (outside of extenuating circumstances). Probably CNC would be the way to go. Keep in mind, the status will be reviewed periodically (if based upon hardship) and if the client starts making some good money, may lose the CNC.


#5

Jeff, I thought the rule of thumb is: Short time on CSED: use CNC. Long time on CSED: use OIC.

Does that make sense, based on your experience?


#6

You are correct. However, I tend to view things from the IRS perspective (former employer). If I have an individual with 8-9 years left on a CSED, I’m under the impression that I will be able to collect at some point in the future.
Perhaps the best course of action is to apply for the OIC, if rejected…Appeal, and then seek CNC if nothing comes of the effort???