IRS Problems, Tax Problems, Tax Accountants, IRS Tax Attorneys, Tax Relief Help CPA, In Houston, Texas.
“Solving IRS problems has been my life’s work. After 30 years and 1,000’s of successful tax cases I can safely say, “I know the IRS Business like the back of my hand”. How would you like to never worry about the IRS again? Let my past knowledge and experience work for you”
– Joe Mastriano, CPA
Joe is a member of the Sugar Land Rotary, whose mission includes promoting integrity, fellowship, and good will.
Non-Liable Parties – Understand How The IRS Perceives Your Situation
When filing an offer in compromise, the taxpayer must compute the offer amount. This is the total amount for which you expect the IRS to settle. This calculation is made up of equity in assets, plus a multiple of income less allowable expenses. The allowable expenses include amounts for household costs. When other people live in the household, their income will be considered in determining the offer amount.
Income & Expense of Non-Liable Parties
The household expenses will be prorated based on the percentage of income the taxpayer earns to the total household income. They even have a form to calculate this. It is necessary to provide the income and expense information of your other household members, regardless if they are liable or non-liable parties.
It is critical that the income and expenses are determined and prorated properly, before filing an offer. If done without this “proration”, you may be very disappointed when your offer is rejected or given back with a suggestion to substantially raise the offer amount.
As always, please hire a licensed CPA firm or law firm for any IRS issues, especially one as critical as an offer in compromise.
If you are considering hiring us, call Joe Mastriano, CPA 713-774-4467. Think your IRS matter is handled? Think again! For your analysis, click here to contact us.