Discussion:Expert in OIC, please
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| Revision as of 13:33, 27 May 2006 Martineo (Talk | contribs) (Thank you Steve-) ← Previous diff |
Revision as of 00:20, 28 May 2006 Martineo (Talk | contribs) (I'm working on t) Next diff → |
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| see you. I still need to answer your email--Bye | see you. I still need to answer your email--Bye | ||
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| + | {{ForumReplyPost|UserID=Martineo|Date=28 May 2006|Text=I'm working on that- More questions: | ||
| + | The Notice of Levy on Wage- Form 668-W(c) is showing 5 years, starting in 1996 | ||
| + | and finishing in 2002. Total delinquent tax is : $21,600. | ||
| + | This amount is going to be around 3 K , after adding year 2,003. I dont know how much after adding others years, but I estimate that it would be probable 3 Ks mores.(Total , then , around 27 Ks) | ||
| + | I think I have to start his OIC with the current date .I mean the 21, 600. | ||
| + | Am I right? | ||
| + | Second: I found some allowances. Transportation is lower that the guy is actually expending because He is financing a 2,005 Truck- $840.00 monthly just making payments to the leanholder and the insurance company. | ||
| + | Is the IRS willing to allow him to take a higher deduction...Or, is the guy going to lose his car after the wage levy applys? | ||
| + | Third question: How may I get "Medical and dental allowances?}} | ||
Revision as of 00:20, 28 May 2006
Discussion Forum Index --> Tax Questions --> Expert in OIC, please
| 26 May 2006 | |
| A taxpayer owes $21,589.00- I just got the pleasure to meet him today
It looks to me that he is a nonfiler-Or maybe he filed but forgot the little detail of payments. If he is making $19.00 an hour, Do you think OIC could be an option> My first impression was: 21 K is too much and he cannot afford to pay that My second one: Making that amount of $ the IRS is not going to agree with any OIC- He is single,,, and maybe he can claim that he is supporting relatives that arte living in his country. One more thing: He got a Notrice of Levy on wages. In my view, Installment agreement... Also, I don't find any valid reason to get penalities waived. Thank you | |
| 27 May 2006 | |
| Martineo, you need to back up several steps. FIRST, you have to complete a 433-A. Take the amount he can pay monthly and multiply it by 48. If that amount is close to or greater than $21K, stop. You also have to add in the value of his assets. Again, if that figure is close to or greater than $21K, stop. So, your client is making $19K an hour which equates to $760 per week and $39,520 annually. Since the 433-A is done on a monthly basis, he's making gross wages of $3,293 per month.
Then, move to his allowable expenses. Food and clothing standards are $556 per month. If he resides in California, I would estimate total taxes at approximately $810 per month. You'll have to figure the Housing and Utility expenses based upon the state and county in which your client resides and the Transportation allowances as well. If the H&U expenses & Transportation expenses are at the highest allowable levels and he has allowable medical expenses, you may find that an Offer IS appropriate. There is no way to know without complete financials. EVEN IF HE IS SUPPORTING RELATIVES LIVING ABROAD, THOSE EXPENSES ARE NOT ALLOWABLE. Go through all the expenses on the 433-A and make your determination. Trying to make a decision on incomplete data only leads to bad decisions. Please don't try to make shortcuts. Also, the levy on his wages is not relevant in determining whether or not he is a good OIC candidate. However, you must complete the 433-A in order to get the wage levy lifted and you'll need to propose some other alternative to the wage levy. If there is no ability to pay, they should release the levy. If there is an ability to pay, they will likely modify the levy to the appropriate monthly amount. They probably will not release the levy in favor of an Installment Agreement. | |
| 27 May 2006 | |
| Thank you Steve- THANK YOU -Your are the best
I will do it. He said he will be here today. Right now, it looks that he is not a candidate for OIC. But I'll do it. Maybe he can get rid of at least 5 or 6 Ks- I hope... More info: As he didn't file 2003, 2004, and 2005, the amount will be approximate 26K. In my view, extremily heavy. I was thinking that if OIC does not work- I saw now that Installment Agreement neither- Chapter 13 , and a good lawyer could be his solution. see you. I still need to answer your email--Bye | |
| 28 May 2006 | |
| I'm working on that- More questions:
The Notice of Levy on Wage- Form 668-W(c) is showing 5 years, starting in 1996 and finishing in 2002. Total delinquent tax is : $21,600. This amount is going to be around 3 K , after adding year 2,003. I dont know how much after adding others years, but I estimate that it would be probable 3 Ks mores.(Total , then , around 27 Ks) I think I have to start his OIC with the current date .I mean the 21, 600. Am I right? Second: I found some allowances. Transportation is lower that the guy is actually expending because He is financing a 2,005 Truck- $840.00 monthly just making payments to the leanholder and the insurance company. Is the IRS willing to allow him to take a higher deduction...Or, is the guy going to lose his car after the wage levy applys? Third question: How may I get "Medical and dental allowances? | |
