Offer in Compromise Guidelines + Formula: EXACTLY How Much to Offer to the IRS!

➡️ Request your FREE tax relief consultation at choicetaxrelief.com/free-tax-...
In this video I'm giving you the exact offer in compromise formula you need to submit your doubt as to collectibility offer in compromise to the IRS. I start with explaining what the IRS is looking for (i.e. your reasonable collection potential), then discuss how to value your assets for offer in compromise purposes, then discuss how to determine your monthly income and expenses for offer in compromise purposes per the IRS Collection Financial Standards, and finally put it all together to help you determine your offer in compromise amount. This offer in compromise training is over an hour long, so be sure to take notes!
⬇️ More Tax Relief Videos:
My Previous Offer in Compromise Video: • Offer in Compromise 20...
How to File Back Taxes and Avoid Penalties: • How to File BACK TAXES...
⬇️ IRS Resources:
- IRS Form 656: www.irs.gov/pub/irs-pdf/f656.pdf
- IRS Form 433-A (OIC): www.irs.gov/pub/irs-pdf/f433a...
- Internal Revenue Manual 5.8.5 Financial Analysis: www.irs.gov/irm/part5/irm_05-...
- Collection Financial Standards: www.irs.gov/businesses/small-...
- National Standards for Food, Clothing, and Other Items: www.irs.gov/businesses/small-...
- Local Standards for Housing and Utilities: www.irs.gov/pub/irs-utl/all_s...
- Local Standards for Transportation: www.irs.gov/pub/irs-utl/all_s...
➡️ My M1 Finance Review: • M1 Finance Review | Pr...
Table of Contents:
0:00 How Much to Offer in Compromise to the IRS
1:26 Reasonable Collection Potential
4:08 Equity Component and Income Component
6:05 Calculating Cash Value
7:30 Calculating Investments at 80% Quick-Sale Value
8:40 IRA Example (After Taxes and Penalties)
12:45 A Note About Quick-Sale Value
13:58 Valuing Life Insurance Policies
15:22 Valuing Real Estate
20:05 Doubt As to Liability With Special Circumstances
21:26 Effective Tax Administration
22:15 Calculating Vehicle Value
23:40 Calculating Miscellaneous Valuable Items Value
24:33 Calculating Furniture and Other Personal Items Value
25:43 Adding Your Assets Up
25:58 Hiding Assets From the IRS (Don't Do It)
28:34 Self-Employed and Business Information
29:28 Calculating the Income Component
31:35 Calculating Gross Monthly Income
33:05 Calculating Monthly Household Expenses
33:14 National Standard Expenses
35:11 National Out-of-Pocket Health Care Expenses
37:05 Local Expenses
37:43 Local Standard Expenses for Housing and Utilities
40:08 Local Standard Expenses for Transportation
48:03 Health Insurance Premiums
48:21 Putting Zero vs. Leaving Blank
48:48 Court-Ordered Payments (Alimony, Child Support, etc.)
49:52 Term Life Insurance Premiums
50:10 Current Monthly Taxes
50:44 Secured Debts
53:07 401(k) Loans
53:39 Other Expenses (Student Loans, Mandatory Retirement, Tuition, etc.)
56:24 Delinquent State and/or Local Tax Payments
57:50 Final Reasonable Excess Monthly Income Calculation
58:18 Determining Your Future Income Multiplier (12 or 24)
1:00:01 Calculating Your Final Offer in Compromise Amount
#offerincompromise #taxrelief #taxhelp

[@LoganAllec]

➡️ Book your FREE tax relief consultation TODAY at choicetaxrelief.com/free-consultation/ or call 866-8000-TAX NOW!

[@apollodelrio3475]

I've watched all your OIC videos now. Super helpful. They answered all my questions but one: I live with girlfriend (who owns house in her name only) and her grandmother (who is on Social Security.) Do I fill out the forms as a single individual, or include one or both of them since they contribute to bills? I can spend the next 3 months establishing rental history either way since I've been paying all the other bills for everyone while she has been paying housing, but I have asked this question of 3 people and gotten 3 different answers. IRS site lingo says to include everyone who contributes to bills, but seems to imply elsewhere this is relating to spouses. I am in a non common-law and non community property state. Do I have a choice as to how to fill it out? Is there only 1 acceptable answer? If so, which one? I'd imagine some version of this scenario applies to anyone who lives with a non spouse, so I'm surprised to find no clear answer.

[@bluecloudbuildersl.l.c.par9738]

This is great thank you! I have a question- In the calculation would I include assets of my sole proprietor LLC taxed with pass-through?

[@LoganAllec]

Yes. Additional information here: kzbin.info/www/bejne/rniTimdmf7GgoJI

[@Mzpaigne]

This video was very helpful! I only have one issue. All of my income comes from contract work and I’m paid as 1099. Lyft, Real Estate Agent, and a contractor for FEMA. I owe $13,000 for 1 year and I only made $62,000. What section of the package will I fill out this income?

[@aceplustaxresolution_getac3624]

Great instructional video. Great efforts! One point to those who are thinking of submitting the offer package by themselves. If your Collection Statute Expiration Date is approaching let say within a couple of years, note that submitting an OIC will toll/extend the remaining CSED period. It could be longer considering the IRS’s current slow processing time or if it gets rejected. If you are eligible for a CNC status or PPIA, that could be your better strategy. It is suggested to seek a professional’s help to consider all other IRS collection alternatives.

[@rainlei9324]

This was amazing thank you so very much!!! you’re so clear and concise - just a natural at explaining this stuff to lay people . i am trying to find the version for solo proprietors - do you have that out yet pls

[@LoganAllec]

Thanks for watching. I am in the process of creating a lot of new offer in compromise content. I have not yet gotten around to creating a video for OICs for sole proprietors but intend to soon.

[@deiadraper6358]

Appreciate your videos I need to be teaching this kind of stuff in schools but then I got to thinking you wouldn't have a job so life is complicated many prayers and many blessings to all

[@LoganAllec]

Thanks, Deia! Hope you're staying cool this summer.

[@bye-byebacktaxes4987]

Excellent, comprehensive explanation on Offer in Compromise!

[@LoganAllec]

Thanks, Jim!

[@charleabythesea]

Thank you Logan! Very insightful.

[@orlyaccount]

what is the Avg cost to have someone professionally prepare a OIC for you?

[@robertosavy3018]

Thank you 😊😊 Logan

[@LoganAllec]

You're welcome, Roberto!

[@williambowman7244]

I am glad in all my 50 working years I never had to pay in always even up or recieve return learned from my father CPA how to claim enough during work year then complete the rest of the deductions so had money back

[@LoganAllec]

That's great news, William! Best to just stay in compliance with the IRS so they never get on your back in the first place!

[@martigustamante1230]

Should I sell one of my cars before I file my OIC. I have one that is paid off and it’s work $2800

[@correnevans8926]

Excellent video!!

[@grumpy-_-ghost3911]

Cheers yall

[@LoganAllec]

Thank you, Grumpy!

[@cocosgachaworld4411]

Since it can take around a year for them to finally accept the offer... Finances could change in that time. Do they ask for any updates? (Like another recent bank statement or assessment of assets)? Or just stick with the information and financial status you were at a year ago when you filed the OIC?

[@LoganAllec]

It depends on the offer examiner. They sometimes ask for updated financials. Those who submit OICs should be prepared for the offer examiner to request updated financials. This can be especially tough if the real estate market swings upward and the person submitting the OIC now has a lot more equity in their home, at least on paper. That can really kill the offer sometimes. We put this language in all of our offer in compromise service contracts with clients: "Any financial changes - for example, your household income increasing, your household expenses decreasing, your equity in assets increasing, etc. - between the time we submit your offer in compromise and the time the IRS reviews it could impact the likelihood of your offer being accepted as well as your offer amount."

[@citivuellc9838]

So what if they are self employed how does the IRS calculate their income if its Not predictable and they have no assets?? How do you calculate in this instance?

[@LoganAllec]

They will insist on averaging.

[@Honestcritic79]

What is the regular 433-A used for? I see that there is a 433-A and 433-A (OIC), two separate form. I understand the differences between 433-B and 433-B (OIC)

[@LoganAllec]

433-A (as well as 433-F) is used for non-offer-in-compromise resolutions such as installment agreements and CNC status.

[@clarissacoby2653]

Can they collect on social security disability?

[@vllewis0526]

I am looking for your video for completing the form as a self employed person. I am trying to figure out how I add this to My personal income. Can You provide that video link?

[@fernandotejeda2238]

I’m currently in non collectible status would an offer in compromise be a good fit for me?

[@LoganAllec]

It depends on your numbers! Shoot me an email at [e-mail].

[@renescootz]

Allen spoke with you after I scheduled a consultation. I called IRS they said you sent form that you represent me but no other actions since July 2021. You said you would do my case pro bono. Please advise.😔

[@LoganAllec]

Hi Rene. Thanks for reaching out. We have had some personnel changes. Please send me an email at [e-mail]. Thanks.

[@vanenine]

Would you recommend Peter Salinger? Thanks

[@seanchristopher6645]

If you file jointly, do you have to include your spouse on your form?

[@LoganAllec]

Hi Sean Christopher. I answered your question in this video that will publish in the near future: kzbin.info/www/bejne/r16Wdn6Dd9Omedk

[@sethubet1728]

FOCUS PEOPLE, this thread has nothing to do with crypto!

[@mcswainj]

Do I have to file all back taxes first

[@LoganAllec]

Generally speaking, you have to be compliant for the past 6 years.

[@mcswainj]

@@LoganAllec kind of lost what do you mean compliant for 6 years I'm just now getting my life back on track are you saying I have to wait six years before I can apply for an OIC

[@LoganAllec]

@@mcswainj You must have filed your tax returns for the past 6 years...you can file then late now if you're behind.

[@clockleon]

@@LoganAllechow do you know when it has been 6 years? Do you go by Jan 1st or April 15 tax day

[@goddessk3740]

Yeah what if your box F if 0? Section 8 tells you not to put 0. We all know any number multiplied by 0 is 0. How can you put an offer if all of your sections add up to a negative number in which it tells you to put 0. . They clearly want you to put an offer but your income is not enough to put one.

[@NG-yh8wx]

does gifted and talented tuition count as special needs since regular school won't quite accommodate that?

[@albertoazucena4749]

Hi logon hi have questions I received a letter to irs that says I own $35000 on year 2021 because I file my taxes wrong ! What do I do ? Can I apply for OIC? I don’t have any assets or property I only make $40000 a year how much can I offer to irs if I approve. I’m paycheck to paycheck every month…

[@LoganAllec]

Hi Alberto! Is it a CP2000 Notice? Did you trade stocks or crypto?

[@albertoazucena4749]

No I did not 2011 tax year I withdraw my pension early I think I made a mistake doing my tax that year and irs just send me a letter that I own $35000 because I Made a mistake on my tax that year so they re do it for me what I need to do?

[@albertoazucena4749]

Do I apply for OIC? Or call the IRS 1st?

[@LoganAllec]

@@albertoazucena4749 If you qualify for an OIC, you can just submit your OIC.

[@albertoazucena4749]

Thank you Logan! Appreciate you! Do I have to call IRS 1st? Or just apply to OIC? And one more question? If I fill up the 433a do I have to put the house hold income? Or just my income Because me I just leave with my mom and pay her $500 a month and I pay all the utilities.. I don’t have any property and I don’t own anything..please let me know thank you!