offer in compromise

sorry, but i don't know if this has been discussed or revealed. effective mid march 2009, I think the 12th. OIC now in many catergories, 1. Housing 2.Food and Clothing 3.Public transportation . These items now have a standard by location and number of dependants that may be taken without proof. That means one might take housing and all utilities and meaningful expenses and use up to the standard without proof.

The only place I have read this is on the IRS OIC 656 656A 433A 433B, I cannot remember which place I read it. I stopped by an IRS office today and feigned a different reason to see an agent and when i ask her about the "NEW Standards under the stimulus package she verified that on certain of these items that a standard may be used. I was talking one guy and his family of 3 Housing Standard was $1672 a month, but his actual was $950. He was able to take the up to $1672 with out needing documentation. I do not know what happens if he is turned down and goes to appeal.

THIS IS NOT INTENDED TO BE A COURSE OF ACTION, RATHER IT SHOULD ENCOURAGE PEOPLE TO USE THE INTERNET AND FIND THE LATEST ON TAX LAWS AND CODES.

REGARDS, TD

Reply to
tdavenport51
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snipped-for-privacy@yahoo.com wrote: That means one

IRM 5.8.5.6.2 (09-23-2008) Necessary Expenses

  1. Absent special circumstances, when determining a taxpayer?s housing and utility expense, use the amount that is claimed or the standard, whichever is less.
Reply to
paultry

Reply to
paultry

Expenses are claimed under penalty of perjury. Claiming a false amount could lead to rejection of the OIC and criminal prosecution.

Reply to
paultry

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