Interim Guidance Memorandum for Offer in Compromise Defined in IRM 5.8.5, Financial Analysis

May 21, 2012

Control Number: SBSE-05-0512-041

Expiration: May 21, 2013

Impacted: IRM 5.8.5

MEMORANDUM FOR DIRECTORS, COLLECTION AREA OPERATIONS

(CALIFORNIA, GULF STATES, AND SOUTH ATLANTIC)

DIRECTORS, CAMPUS COMPLIANCE OPERATIONS

(BROOKHAVEN AND MEMPHIS)

FROM: Scott D. Reisher /s/ Scott D. Reisher

Director, Collection Policy

SUBJECT: Interim Guidance Memorandum for Offer in Compromise

Defined in IRM 5.8.5, Financial Analysis

The purpose of this memorandum is to provide expanded guidance to IRM 5.8.5. Significant

changes in this memorandum include defining equity in an on-going business, evaluation of

money in bank accounts, reducing the equity in a vehicle, dissipated assets, retired debt,

student loans, allowance for delinquent state and local income tax liabilities, and the future

income multiplier. The attached updates will be incorporated in the next revision of Internal

Revenue Manual (IRM) 5.8.5, Financial Analysis, and are effective May 21, 2012.

This memorandum supersedes Interim Guidance Memorandums SBSE-05-0212-010, Offer in

Compromise Streamline Offer Processes for Field Offer Specialists, and SBSE-05-0511-026,

Centralized Offer in Compromise Streamline Offer Processes. However, the expectation is

that you will continue to:

• Rely on internal record checks to determine ownership and equity in real and personal

property, including motor vehicles,

• Use the telephone as your primary form of contact,

• Accept oral testimony, unless the information provided appears to be questionable,

and

• Use the quick notes, when appropriate.

If you have any questions, please contact me, or a member of your staff may contact Diane

Morris, Senior Program Analyst. COIC personnel should direct any questions through the

appropriate management chain.

Attachments: (1)

cc: Chief, Appeals

Director, Field Collection

Director, Campus Compliance Services

Director, Filing and Payment Compliance

Assistant Division Counsel, SBSE

National Taxpayer Advocate

www.irs.gov

Related Items:

Posted by PitBullTax Administrator at 05/22/2012 11:40:58 AM
×

Take 10% OFF

your entire first purchase when you join our email list.

This offer is valid for first-time email subscribers only. To take advantage of this offer, enter your email address before closing this window. You can unsubscribe at any time. Click here to read our full privacy policy. Some promo code restrictions apply.

Thanks for signing up!


We've sent promo code to your inbox.