Utilizing the IRS Offer in Compromise Program for your Financially Distressed Client
Author: Jim Buttonow
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
There are over 22 million taxpayers (individual and business) who owe the IRS back taxes. In 2022, only 13,167 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 course, 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: August 2024
Topics Covered
- IRS Collection and Tax Debt Update
- IRS collection rules and alternatives to full payment
- Determining ability to pay
- How the IRS Offer in Compromise works
- OIC Process and Case Example
- Practical considerations and tips
Learning Objectives
- Identify IRS collection trends, including utilization of the IRS offer in compromise program
- Explain the IRS offer in compromise program and how it works
- Recognize whether a client qualifies for an offer in compromise
- Identify how to 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
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
