What is the process to obtain OIC when the TP can pay his Installment payments


#1

I am new to Canopy and would appreciate any advice on how to address my client’s inability to pay the installments now.

Thanks


#2

Hi,
I haven’t had that experience (yet), but if you have power of attorney, I would call the offer unit to inquire, as soon as possible. Good luck!


#3

If the TP has the ability to pay off the amounts owed within 72 months based on gross income less allowable expenses the OIC will be denied. You’ll need to adjust the allowable expenses and provide documentation supporting the position that net income would not be enough to pay the amount owed in 72 months. Often this involves discussing where the TP is spending money that is not counted as a deduction to gross income by the OIC rules and where those expenditures can be moved and be counted as deductions under those rules. OIC planning is allowable but not suggested by the IRS.