Taxpayer Financial Situation, Bankruptcy, and Collection Financial Standards

Free IRS Enrolled Agent SEE Part 3 (Representation, Practices and Procedures) lesson in Representation Before the IRS. 16 min read, ~2,456 words.

Three collection alternatives: Installment Agreement (pay over time), Offer in Compromise (settle for less), Currently Not Collectible (suspend collection). OIC RCP formula: Net realizable equity in assets + future income (12 months for lump-sum, 24 months for periodic). Bankruptcy 3-2-240 rule: Income tax dischargeable if return due 3+ years ago...

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