EA Exam Prep Part 3: Preparing an OIC (Currently Unavailable)

Author: Eva Rosenberg

This is the eleventh class of the EA Exam Prep Part 3 series. What happens if a client cannot pay the taxes due? Find out the options from TaxMama®. Review payment options, how to file for them, and keywords that are used when considering these choices. Learn the various forms necessary to file for an Offer in Compromise, how to complete them, and what you need to consider when doing so. Discover when a client is ineligible to file for an Offer in Compromise. Discuss strategies for analyzing client information and more. And, take a comprehensive look at three sample clients from analysis of their information to the final decision of which option to choose.

Publication Date: October 2019

Designed For
Tax practitioners of all levels, regardless of experience, who want to learn about practicing before the IRS and more. Excellent training for staff working in tax offices, accounting practices, corporate settings, independent bookkeepers, and others who must proofread tax returns containing this information. Passing the EA exam, they will be able to pull client records and transcripts and relieve the tax preparers from routine tasks. This is more than just a basic course. This course provides an in-depth look at the Offer in Compromise. It is especially helpful to those with no hands-on experience with IRS audits and tax representation and those who are returning to tax preparation after years in corporate or other jobs. This course is also designed to help CPAs earn their Enrolled Agent credential so they can practice anywhere in the country without re-certifying.

Topics Covered

• Payment options for clients who owe taxes
• Reasonable Collection Potential (RCP)
• Net Realizable Equity (NRE)
• Quick Sale Value (QSV)
• National Standards
• Offer in Compromise eligibility requirements
• Filing for an Offer in Compromise when there is an existing installment agreement
• Special circumstances
• Ineligibility to file for Offer in Compromise
• IRS Fresh Start program
• Evaluating sample client data for Offer in Compromise eligibility
• Software evaluations
• Strategies for evaluating client data
• Documentation needed to file for an Offer in Compromise
• Timing considerations
• Options for filing
• Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals
• Form 433-B, Collection Information Statement for Businesses
• Form 433-F, Collection Information Statement
• Form 656, Offer in Compromise
• Form 656-B, Offer in Compromise booklet
• Form 9465, Installment Agreement Request

Learning Objectives

• Recognize the different payment options available
• Identify key terms associated with assessing collection potential
• Describe eligibility requirements for an Offer in Compromise
• Recognize the IRS Fresh Start program
• Identify strategies for evaluating client data
• Recognize how to prepare documentation to file for an Offer in Compromise
• Identify filing options
• Identify key points of sample client data

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None