Discussion:Expert in OIC, please

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

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.

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

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?

One person National Standards, Based on G Monthly Income: $621.00.. The guy is here--I'll be back

Steve: I think that the best solution would be an Attorney. I'm planning to meet him -with my client- next week. Nevertheless, I'll continue working in his case during this days. The IRS is planning, according with the info I saw in the form , left just $700.00 monthly to the poor guy. Then, OIC could be ,at least, a relief for him....I hope.. But,as the guy need- or want- get rid of the Levy right now. Chapter 13 or 7 could be ,I think, the best, the solution. To stop the wage garnish-withough a lawyer, I understand that He will need a document from his employer stating that he would be probably fired for that situation.

line 35. Food, Clothing and misc $ 621.00 line 36. Housing and Utilities $ 1196.00 line 37. Transportation $ 471.00 line 38. Health Care - Pending line 39.. Taxes (Federal and FICA) $498.00

Total  : $2 786.00

Times 48 = $24,000.00 The amount is pretty close to his total debt. No credit cards, no equity in assets. Then , In my view, OIC is not going to help him too much.

Too much risk involved here- I want to get some protection to get a defense in case something goes wrong

Also, the transportation amount of $471 is for OWNERSHIP costs only. Did you figure in OPERATING expenses? In most parts of the country, operating expenses will run from $238 per month on the low side (in Atlanta) to a high of $401 in San Francisco.

Next, I don't believe the tax amount is correct. Federal taxes on $40,000 should be approximately $4,445 and FICA and Medicare should be another $3,060 for a total of $7,505 which is $625 per month.

Finally, health care expenses can't be left out. You need to go through health insurance, prescriptions, co-pays, deductibles, dental, vision, etc. to come up with a proper amount. You cannot use payments on old unpaid medical bills.

I have a standard contract I use for all cases and modify each one to fit the particular situation. However the contract itself doesn't protect you if something goes wrong. Clients may sue if they're not happy with the outcome. It's the nature of the business. I have never been sued for more than the amount of the fee paid.

The problem is , in this case the guy neeed a quick solution.It would take a lot of time to finish the OIC , process it and get IRS approval.. I'll help him with the tax attorney. I understeand that filing a 911 Form is not enought, and I don't know all the consecuences of that. And his salary will be garnished next payroll!!!! Also, My corporation don't let me do it during my regular hours- They are doing just tax return prep. My superviser told me "If that is soo hard, forget it. Ther are afraid of liabilities