There are over 20 million taxpayers (individual and business) who owe the IRS back taxes. In 2019, only 17,890 taxpayers received an IRS settlement – that is, an IRS offer in compromise. An OIC allows taxpayers to settle their tax bill for less than the amount owed. Why do so few get an OIC? In this webinar, find out how the IRS’ offer in compromise program works and understand if your financially distressed client qualifies for an OIC. If they qualify, find out how much it will cost to settle their tax bill. We will cover the OIC rules and walk through a real-life example of how the OIC works from qualification, to application, through the OIC investigation, and to the final end. We will also get insights as to why many taxpayers do not qualify – and other IRS options that may be more suited to their circumstances.
Publication Date: May 2021
Designed For
All tax professionals who need to resolve unpaid taxes issues for their clients and want to consider the IRS offer in compromise program.
Topics Covered
- Current tax debt trends
- IRS collection rules and alternatives to full payment
- Determining ability to pay
- How the IRS Offer in Compromise works
- Practical considerations and tips
Learning Objectives
- Identify the IRS offer in compromise program and how it works
- Recognize how to analyze whether a client qualifies for an offer in compromise
- Calculate the amount they need to settle their tax bill
- Identify the potential issues that will disqualify a client from an OIC
- Identify other IRS collection alternatives that may better fit your client's circumstances
- Identify the median amount owed by individuals
- Recognize which IRS form represents a balance due notice
- Recognize a type of allowable living expenses
- Identify components that go into an OIC qualification determination
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Jim Buttonow
Jim Buttonow, CPA, CITP, has been a leader in helping taxpayers and tax professionals resolve tax problems with the IRS.
For 19 years, Jim worked at the IRS in various compliance enforcement positions. Since 2006, Jim has been in private practice and tax and accounting software development. Jim consulting practice focuses on the areas of tax controversy and tax administration. Jim led product development and marketing for a successful software company that developed tax problem software for tax professionals and has developed and implemented post-filing tax services to large tax providers, such as H&R Block and Jackson Hewitt. This software is currently being used by tens of thousands of tax professionals and businesses in the United States.
Jim has been an IRS partner in improving IRS operations and post-filing service to taxpayers. Jim served as chairperson of the IRS Electronic Tax Administration Advisory Committee (ETAAC) in 2015 and 2016 during which ETAAC played a central role in promoting the IRS digital strategy to develop transformative technology solutions to systemic challenges in tax administration. Jim also served as the North Carolina representative on the IRS’ Taxpayer Advocacy Panel (TAP) from 2020-2022.
Jim regularly speaks on areas of tax administration and problem solving to national associations and has testified before Congress in areas of tax administration. He has also published many articles in industry publications. In his articles, Jim focuses on delivering practical insights, advocating for IRS transparency and efficiency, and proposing innovative large-scale solutions for taxpayers and tax professionals.
Jim currently authors the Tax Problems and Solutions Handbook, a publication aimed at helping tax pros work more effectively in post-filing matters and resolving their clients’ most common tax problems. The book can be found online at TaxProblemsHandbook.com. Jim can be reached at Jim@buttonowcpa.com or at his website at buttonowcpa.com.