We offer special rates for new clients sign up by October 31st , 2023

NEW PROCEDURE WHEN SUBMITTING AN OFFER AND COMPROMISE

Author: First Choice CPA Services, LLC | | Categories: Accountants , Accounting Experts , Accounting Firm , Accounting Services , Accurate Bookkeeping , Back Taxes , Bank Financing , Bankruptcy , Bookkeeping Services , Business Advisory Services , Business Planning , Business Risk Mitigation , Cash Flow Management , Certified Public Accounting Firm , CPA , Estate Tax Preparation , Financial Management for Individuals , Financial Management for Small Businesses , Financial Planning , Financial Statement Preparation , General Ledger Maintenance , Income Tax Preparation , Innocent Spouse Relief , IRS , Litigation Support , New Business Formation , Non-Filed Tax Returns , Offer in Compromise , Part-Time CFO Services , Payroll Services , QuickBooks Services , QuickBooks Setup , QuickBooks Training , QuickBooks Tune-Up , Retirement Planning , Reviews and Compilations , Small Business Accounting , Succession Planning , Tax Advice , Tax Compliance , Tax Consulting , Tax Experts , Tax Levies , Tax Planning for Business Owners , Tax Planning for Retirees , Tax Preparation for Business Owners , Tax Preparation for Individuals , Tax Preparation for Non-Profit , Tax Preparation for Retirees , Tax Preparation for Small Business Owners , Tax Professionals , Tax Relief , Tax Resolution , Tax Resolution Experts , Tax Returns , Tax Specialists , Trust Tax Preparation

IRS Tightens Compliance Standard for Employer OICs Thomson Reuters Tax & Accounting.

According to new IRS interim guidance. The following new procedure is followed in determining when an employer is “in compliance” with its federal tax deposit requirements for purposes of making an offer-in-compromise [SBSE-05-0422-0014, 4/25/2022].

Old procedure.

The IRS requires an employer submitting an offer-in-compromise to be in compliance with its federal tax deposit (FTD) obligations. Under the old offer procedure, the IRS treated an employer as “in compliance” with the obligations if the employer made all required FTDs for the quarter in which it submitted the offer (submission quarter) and subsequent quarters.

Note - An offer-in-compromise is an agreement between the taxpayer and the IRS that settles a tax debt for less than the full amount owed. Generally, a taxpayer making an offer must be in compliance with all their tax obligations before the IRS will consider it.

Procedural change.

Under the new procedure, the IRS won’t consider an employer to be “in compliance” with its FTD obligations unless, before submitting its offer, the employer has made all required FTDs for the submission quarter and the two preceding quarters.

Note. If the IRS determines that the employer hasn’t made all required FTDs, the IRS won’t process the offer but will return the offer to the taxpayer and apply any payment made with the offer to the employer’s tax debt.

In addition, the taxpayer must stay in compliance with all its tax obligations (including making its FTDs) through the investigation of its offer and the monitoring period for accepted offers.

Revised Form 656-B.

The new revision of Form 656-B, Offer in Compromise Booklet (Rev 4-2022) must be used for any offer made after May 26, 2022.

Effective date.

This interim guidance is effective April 25, 2022. If you need help settling with the IRS contact us at +1 (941) 343-3042 or submit a request on our website: https://www.firstchoicecpaservices.com/irs-problemshome.php.

READ MORE BLOG ARTICLES

Top