YVETTE BROOKS-WILLIAMS: I SEE IT'S THE TOP OF THE HOUR. FOR THOSE OF WHO JUST JOINING, WELCOME TO TODAY'S WEBINAR, WORLD OF OFFER IN COMPROMISE. WE'RE GLAD YOU ARE JOINING US TODAY. MY NAME IS YVETTE BROOKS-WILLIAMS. AND I AM A SENIOR STAKEHOLDER LIAISON WITH THE INTERNAL REVENUE SERVICE, AND I WILL BE YOUR MODERATOR FOR TODAY'S WEBINAR, WHICH IS SLATED FOR 75 MINUTES. BEFORE WE BEGIN, IF THERE IS ANYONE IN THE AUDIENCE THAT IS WITH THE MEDIA, PLEASE SEND AN EMAIL TO THE ADDRESS ON THIS SLIDE. BE SURE TO INCLUDE YOUR CONTACT INFORMATION AND THE NEWS PUBLICATION YOU ARE WITH. OUR MEDIA RELATIONS AND STAKEHOLDER LIAISON STAFF WILL ASSIST YOU AND ANSWER ANY QUESTIONS YOU MAY HAVE. AS A REMINDER, THIS WEBINAR WILL BE RECORDED AND POSTED TO THE IRS VIDEO PORTAL IN A FEW WEEKS. AND THE PORTAL IS LOCATED AT WWW.IRSVIDEOS.GOV. PLEASE NOTE, CONTINUING EDUCATION CREDIT OR CERTIFICATES OF COMPLETION ARE NOT OFFERED IF YOU VIEW ANY VERSION OF WEBINARS AFTER THE LIVE BROADCAST. NOW WE HOPE YOU WON'T EXPERIENCE ANY TECHNOLOGY ISSUES, BUT IF YOU DO, THIS SLIDE SHOWS HELPFUL TIPS AND REMINDERS. WE POSTED A TECHNICAL HELP DOCUMENT YOU CAN DOWNLOAD FROM THE MATERIALS SECTION ON THE LEFT SIDE OF YOUR SCREEN. IT PROVIDES THE MINIMUM SYSTEM REQUIREMENTS FOR VIEWING THIS WEBINAR ALONG WITH SOME BEST PRACTICES AND QUICK SOLUTIONS. NOW, DUE TO COMPATIBILITY ISSUES, WE ENCOURAGE YOU TO USE A BROWSER OTHER THAN INTERNET EXPLORER. YOU MAY EXPERIENCE FROZEN SCREENS AND OTHER TECHNOLOGY ISSUES IF YOU DO USE INTERNET EXPLORER. AND IF YOU ARE USING ANYTHING OTHER THAN INTERNET EXPLORER AND YOU'RE STILL HAVING PROBLEMS, TRY ONE OF THE FOLLOWING. CLOSE THE SCREEN WHERE YOU'RE VIEWING THE WEBINAR AND RELAUNCH IT OR CLICK ON SETTINGS ON YOUR BROWSER VIEWING SCREEN AND HLS. YOU SHOULD HAVE RECEIVED TODAY'S POWERPOINT IN AN EMAIL REMINDER. BUT, IF NOT, NO WORRIES, YOU CAN DOWNLOAD IT BY CLICKING ON THE MATERIALS DROPDOWN ARROW ON THE LEFT SIDE OF YOUR SCREEN AS SHOWN ON THIS SLIDE. CLOSED CAPTIONING IS AVAILABLE FOR TODAY'S PRESENTATION. IF YOU ARE HAVING TROUBLE WITH HEARING THE AUDIO THROUGH YOUR COMPUTER SPEAKERS, PLEASE CLICK THE CLOSED CAPTIONING DROPDOWN ARROW LOCATED ON THE LEFT SIDE OF YOUR SCREEN. THIS FEATURE WILL BE AVAILABLE THROUGHOUT THE WEBINAR. DURING THE PRESENTATION, WE'LL TAKE A FEW BREAKS TO SHARE OUR KNOWLEDGE-BASED QUESTIONS WITH YOU. AND AT THOSE TIMES, A POLLING-STYLE FEATURE WILL POP UP ON YOUR SCREEN WITH A QUESTION AND MULTIPLE-CHOICE ANSWERS. SELECT THE RESPONSE YOU BELIEVE IS CORRECT BY CLICKING ON THE RADIO BUTTON NEXT TO YOUR SELECTION AND THEN, CLICK SUBMIT. SOME PEOPLE MAY NOT GET THE POLLING QUESTION, BUT THIS MAYBE BECAUSE YOU HAVE YOUR POP-UP BLOCKER ON, SO PLEASE TAKE A MOMENT TO DISABLE YOUR POP-UP BLOCKER NOW SO THAT YOU MAY ANSWER THE QUESTION. IF YOU HAVE A TOPIC SPECIFIC QUESTION TODAY, PLEASE SUBMIT IT BY CLICKING THE ASK QUESTION DROPDOWN ARROW TO REVEAL THE TEXT BOX, TYPE YOU QUESTION IN THE TEXT BOX AND THEN, CLICK SEND. AND THIS IS VERY IMPORTANT, PLEASE DO NOT ENTER ANY SENSITIVE OR TAXPAYER-SPECIFIC INFORMATION. AGAIN, WELCOME, WE ARE GLAD YOU JOINED US FOR TODAY'S WEBINAR. BEFORE WE MOVE ALONG WITH OUR SESSION, LET ME MAKE SURE YOU'RE IN THE RIGHT PLACE. TODAY'S WEBINAR IS THE WORLD OF OFFER IN COMPROMISE.

THIS WEBINAR IS SCHEDULED FOR APPROXIMATELY 75 MINUTES. AND LET ME INTRODUCE TODAY'S SPEAKERS.

EVETTE DAVIS AND VERONICA TUBMAN ARE BOTH SENIOR STAKEHOLDER LIAISON IN THE COMMUNICATIONS &; LIAISON DIVISION. YOU MAY RECOGNIZE THEM AT FREQUENT SPEAKERS AND MODERATORS ON IRS WEBINARS. I'M GOING TO TURN IT OVER TO EVETTE TO BEGIN THE PRESENTATION. EVETTE? EVETTE DAVIS: YES, GREAT AFTERNOON. THANK YOU, YVETTE. I APPRECIATE THAT. GOOD AFTERNOON, EVERYONE AND THANK YOU ALL FOR ATTENDING. TODAY WE WOULD LIKE TO DISCUSS THE WONDERFUL WORLD OF OFFER IN COMPROMISE AND OTHER INTERESTING FACTS. THIS SESSION IS DESIGNED TO GIVE YOU AN OVERVIEW OF WHAT THE OFFER PROGRAM IS ALL ABOUT. THE GOALS OF THE OFFER PROGRAM ARE TO ACHIEVE A RESOLUTION THAT IS IN THE BEST INTEREST OF BOTH THE TAXPAYER AND THE GOVERNMENT. TO COLLECT WHAT CAN REASONABLY EXPECTED AT THE EARLIEST POSSIBLE TIME AND AT THE LEAST COST TO THE GOVERNMENT, AS WELL AS TO SECURE REVENUE THAT MAY NOT BE COLLECTED THROUGH ANY OTHER MEANS. FOR EXAMPLE, A LOT OF TAXPAYERS FUND THEIR OFFERS BY BORROWING FROM FRIENDS AND RELATIVES. AND ON THE NEXT SLIDE WE'RE GOING TO LOOK AT OUR OBJECTIVES. SO, THE OBJECTIVES FOR TODAY ARE AS LISTED, WE'RE GOING TO DEFINE AN OFFER, DESCRIBE THE OFFER PROCESS AND LIFECYCLES AND THEN PROVIDE SOME HELPFUL HINTS. AND REMEMBER FOLKS, THE OFFER PROGRAM WANTS TO ACHIEVE A RESOLUTION THAT IS IN THE BEST INTEREST OF BOTH THE GOVERNMENT AND THE TAXPAYERS. SO, LET'S LOOK AT THE DEFINITION OF OFFER IN COMPROMISE. SO, WHAT IS AN OFFER IN COMPROMISE. AS IT STATES, AN OFFER IN COMPROMISE OR OIC AS YOU MAY HEAR US SAY, IS AN AGREEMENT BETWEEN THE TAXPAYER AND THE IRS THAT SETTLES THE TAX DEBT FOR LESS THAN THE FULL AMOUNT OWED. THE GOVERNMENT LIKE OTHER CREDITORS ENCOUNTERS SITUATIONS WHERE AN ACCOUNT RECEIVABLE CAN'T BE COLLECTED IN FULL, OR THERE'S A LEGITIMATE DISPUTE AS TO WHAT'S ACTUALLY OWED. IT IS ACCEPTED BUSINESS PRACTICE TO RESOLVE THESE ISSUES THROUGH NEGOTIATIONS AND COMPROMISE. REMEMBER, THE OFFER IN COMPROMISE PROGRAM AIMS TO EFFECT COLLECTIONS OF WHAT CAN REASONABLY BE COLLECTED AT THE EARLIEST POSSIBLE TIMES, AND AT THE LEAST COST TO THE GOVERNMENT. IT AIMS TO ACHIEVE RESOLUTION THAT IS IN THE BEST INTEREST OF BOTH THE INDIVIDUALS AND THE GOVERNMENT, AND IT AIMS TO PROVIDE THE TAXPAYER A FRESH START TOWARDS FUTURE VOLUNTARY COMPLIANCE WITH ALL FILING AND PAYMENT REQUIREMENT BEING MET. AND FINALLY, IT AIMS TO SECURE COLLECTION OF REVENUES THAT MAY NOT BE COLLECTED THROUGH ANY OTHER MEANS. THE SUCCESS OF THE COMPROMISE PROGRAM WILL BE ASSURED ONLY IF TAXPAYERS MAKE ADEQUATE COMPROMISE PROPOSALS CONSISTENT WITH THEIR ABILITY TO PAY, AND THE IRS MAKES PROMPT AND REASONABLE DECISION. TAXPAYERS ARE EXPECTED TO PROVIDE REASONABLE DOCUMENTATION AND THIS IS TO VERIFY THEIR ABILITY TO PAY. THE GOAL, AGAIN, IS A COMPROMISE WHICH IS IN THE BEST INTEREST OF BOTH THE TAXPAYER AND THE IRS. ACCEPTANCE OF AN ADEQUATE OFFER WILL ALSO RESULT IN CREATING FOR THE TAXPAYER AN EXPECTATION OF A FRESH START TOWARDS COMPLIANCE WITH ALL FUTURE FILINGS AND PAYMENT REQUIREMENT.

NOW THERE ARE THREE TYPES OF OFFERS THAT TAXPAYERS CAN REQUEST. THE FIRST ONE YOU SEE IS DOUBT AS TO COLLECTABILITY. NOW THIS IS WHEN TAXPAYERS ARE UNABLE AFTER FINANCIAL ANALYSIS, THEY'RE UNABLE TO PAY THEIR LIABILITY IN FULL. AND THIS IS THE MOST COMMON TYPE OF OFFER. GENERALLY SPEAKING, A DOUBT AS TO COLLECTABILITY OFFER MUST EQUAL OR EXCEED A TAXPAYER'S REASONABLE COLLECTION POTENTIAL IN ORDER TO BE ACCEPTABLE. IN MOST CASES, WHEN THE OFFER AMOUNT EXCEEDS THE REASONABLE COLLECTION POTENTIAL, THE ACCEPTANCE TO BE FOR THE AMOUNT OFFERED. NOW LET'S MOVE TO DOUBT AS TO LIABILITY.

TAXPAYERS BASICALLY DOUBT THE ACCURACY OF THEIR TAX LIABILITY. THESE OFFERS ARE OFTEN ROUTED TO EXAMINATION AFTER THEY'RE RECEIVED. OFFERS ACCEPTED BASED ON DOUBT AS TO LIABILITY SHOULD ONLY INCLUDE THE TAX YEARS OR PERIODS IN QUESTION. LIABILITIES FOR OTHER TAX PERIODS SHOULD NOT BE INCLUDED IN THIS OFFER. THIS TYPE OF OFFER IS SUBMITTED ON FORM 656-L WHICH STANDS FOR LIABILITY.

NOW THE THIRD TYPE IS THE ETA, EFFECTIVE TAX ADMINISTRATION. AND THIS MEANS THAT THE TAXPAYER OWES THE AMOUNT AND THEY HAVE ENOUGH IN ASSETS AND INCOME TO PAY THE LIABILITY IN FULL. BUT, DUE TO SPECIAL CIRCUMSTANCES REQUIRING FULL PAYMENT WOULD CREATE AN ECONOMIC HARDSHIP OR SIMPLY BE INEQUITABLE.

AND THERE ARE TWO OPTIONS TO FILE UNDER THE BASIS OF EFFECTIVE TAX ADMINISTRATION. FIRST, IF THE TAXPAYER IS PAYING MORE THAN THE AMOUNT OFFERED IT WOULD CREATE A FINANCIAL HARDSHIP, THAT COULD BE CONSIDERED AN EFFECTIVE TAX ADMINISTRATION OFFER. SECOND, THE AMOUNT OFFERED IS BASED ON THE TAXPAYER'S EXCEPTIONAL CIRCUMSTANCES OTHER THAN ECONOMIC HARDSHIP. THEN THAT MEANS THAT COLLECTION OF A FULL LIABILITY COULD UNDERMINE PUBLIC CONFIDENCE THAT THE TAX LAWS ARE ACTUALLY BEING ADMINISTERED IN A FAIR AND EQUITABLE MANNER. FOR EXAMPLE, YOU HAVE A PAYROLL SERVICE PROVIDER THAT MISAPPROPRIATED TAXES WITHHELD FROM THE TAXPAYER'S EMPLOYEES. OKAY, SO THOSE ARE THE THREE BASES FOR REQUESTING AN OFFER IN COMPROMISE. LET'S GO AHEAD AND MOVE ON. SO, LET'S TALK ABOUT WHETHER AN OFFER IS THE RIGHT COLLECTION ALTERNATIVE. DID YOU REALIZE THAT AN OFFER IS NOT THE FIRST OPTION?

YEAH, THERE ARE OTHER OPTIONS AS YOU SEE ON THE SLIDE, THAT'S TO BE CONSIDERED FIRST LIKE, OF COURSE, FULL PAY, RIGHT. THIS FIRST OPTION IS RECOMMENDED, BUT ONLY IF IT IS EVIDENT THAT THE TAXPAYER HAS THE ABILITY TO FULL PAY UNLESS THE TAXPAYER INDICATES THERE ARE SPECIAL CIRCUMSTANCES OR AN EFFECTIVE TAX ADMINISTRATION CRITERIA ACTUALLY APPLIES. ANOTHER OPTION - YVETTE BROOKS-WILLIAMS: EVETTE, EXCUSE ME FOR ONE SECOND. YOU'RE GIVEN UP SOME REALLY GREAT INFORMATION.

WE HAVE SOME COMMENTS. CAN YOU SPEAK JUST A LITTLE BIT LOUDER, BECAUSE WE DON'T WANT TO MISS A THING? EVETTE DAVIS: OH, SURE. HOW ABOUT THIS. IS THIS BETTER? - YVETTE BROOKS-WILLIAMS: OK, THANK YOU. EVETTE DAVIS: ALL RIGHT. YVETTE BROOKS-WILLIAMS: THANK YOU. EVETTE DAVIS: ALL RIGHT. ALL RIGHT, GOT IT. SO, LET'S TALK ABOUT BORROWING. SO, THE IRS THUS SUGGEST THAT YOU BORROW, IF THE TAXPAYER HAS THE ABILITY TO BORROW THE FUNDS TO FULL PAY THE TAXES OWED INCLUDING PENALTIES AND INTERESTS. THIRD, LIQUIDATION OF ASSETS. NOW, THIS SHOULD BE CONSIDERED IF THE TAXPAYER HAS TANGIBLE ASSETS THAT CAN BE USED TO FULL PAY THE TAXES OWED INCLUDING THE PENALTIES AND INTERESTS. THE NEXT OPTION IS INSTALLMENT AGREEMENT. INSTALLMENT AGREEMENTS ARE ARRANGEMENTS BY WHICH THE IRS ALLOWS THE TAXPAYERS TO PAY LIABILITIES OVER TIME. IF FULL PAYMENT CANNOT BE ACHIEVED BY THE COLLECTION STATUTE EXPIRATION DATE, AND TAXPAYERS HAVE SOME ABILITY TO PAY THROUGH A PARTIAL PAYMENT INSTALLMENT AGREEMENT FOR EXAMPLE, THAT'S SOMETHING THAT MAYBE GRANTED. DURING THE COURSE OF THESE AGREEMENTS, PENALTIES AND INTERESTS STILL CONTINUE TO ACCRUE. SO THAT'S IMPORTANT TO KNOW. IT'S ALSO IMPORTANT TO NOTE, THAT WITH AN OFFER IN COMPROMISE, I APOLOGIZE, IT'S ALSO IMPORTANT TO NOTE THAT AN OFFER IN COMPROMISE IS AN OPTION. AGAIN AS A REMINDER, IT SHOULD NOT BE THE FIRST OPTION THAT YOU SHOULD CONSIDER. OKAY, SO NOW LET'S LOOK AT HOW TO CALCULATE THE OFFER IN COMPROMISE.

RIGHT, SO WE CALCULATE THE ABILITY TO PAY USING A FEW THINGS, RIGHT. FIRST, NET REALIZABLE EQUITY IN ASSETS, WITH NET REALIZABLE EQUITY, IT'S DEFINED AS THE QUICK SALE VALUE OR QSV, LESS AMOUNT OWED TO SECURED LIEN HOLDERS WITH PRIORITY OVER THE FEDERAL TAX LIEN, IF APPLICABLE, AND APPLICABLE EXEMPTION AMOUNT. SECOND, FUTURE INCOME. WITH FUTURE INCOME, THIS IS DEFINED AS AN ESTIMATE OF THE TAXPAYER'S ABILITY TO PAY BASED ON AN ANALYSIS OF GROSS INCOME LESS NECESSARY LIVING EXPENSES FOR A SPECIFIC NUMBER OF MONTHS INTO THE FUTURE. THIRD, WE LOOK AT ALLOWABLE EXPENSES. ALLOWABLE EXPENSES EXCLUDE THOSE EXPENSES THAT MEET THE NECESSARY EXPENSE TEST. AND THE NECESSARY EXPENSE TEST IS SIMPLY DEFINED AS EXPENSES THAT ARE NECESSARY TO PROVIDE FOR A TAXPAYER AND HIS OR HER FAMILY'S HEALTH AND WELFARE AND OR PRODUCTION OF INCOME. BUT THERE ARE TWO TYPES OF ALLOWABLE EXPENSES. THE FIRST ALLOWABLE EXPENSE IS THE ALLOWABLE LIVING EXPENSES. AND THESE ARE BASED ON THE NATIONAL AND LOCAL STANDARDS AND THEY ONLY APPLY TO INDIVIDUALS FOR THEIR FAMILY SIZE. NOW, WITH NATIONAL STANDARDS, THESE ARE ESTABLISHED STANDARDS FOR FOOD, CLOTHING AND OTHER ITEMS AS WELL AS OUT OF POCKET HEALTHCARE EXPENSES. WITH THE LOCAL STANDARDS, THIS INCLUDES HOUSING AND UTILITIES AND TRANSPORTATION. NOW AS FAR AS OTHER NECESSARY EXPENSES ARE CONCERNED, THOSE EXPENSES ARE THOSE THAT MEET THE NECESSARY EXPENSES AND ARE NORMALLY ALLOWED. EXAMPLES COULD INCLUDE HEALTH INSURANCE EXPENSES AS WELL AS CHILD CARE EXPENSES. NOW, THERE ARE OTHER CONDITIONAL EXPENSES THAT MAY BE CONSIDERED. THESE EXPENSES WHICH MAY NOT MEET THE NECESSARY EXPENSE TEST, MAY BE ALLOWABLE BASED ON THE CIRCUMSTANCES OF AN INDIVIDUAL CASE. EXAMPLES INCLUDE, CURRENT YEAR TAXES, STUDENT LOANS AND EVEN DELINQUENT STATE AND LOCAL TAXES. YVETTE BROOKS-WILLIAMS: HEY, EVETTE AND VERONICA. CAN WE PAUSE AND JUST TAKE A FEW QUESTIONS FROM THE PARTICIPANTS? EVETTE DAVIS: I THINK THAT SOUNDS GREAT. LET'S GO. YVETTE BROOKS-WILLIAMS: AWESOME. SOMEONE ASKED, WHY ARE THE EXEMPTIONS FOR VEHICLES AND BANK ACCOUNTS NOT APPLIED ON ALL OFFERS? EVETTE DAVIS: OKAY, YVETTE. LET ME TAKE THAT ONE. THANK YOU FOR THE QUESTION. SO, LET'S THINK ABOUT IT THIS WAY. IF THE OUTSTANDING BALANCE DUE CAN BE FULL PAID BY EQUITY IN AVAILABLE ASSETS SAY BY FUTURE INCOME POTENTIAL OR EVEN A COMBINATION OF BOTH, THEN THOSE EXEMPTIONS WILL NOT BE APPLIED AT ALL. WHEN IT COMES TO THE $1000 BANK ACCOUNT EXEMPTION, THIS WILL ONLY APPLY TO INDIVIDUALS AND THAT'S WHETHER IT'S A JOINT OR SEPARATE LIABILITIES, INCLUDING SOLE PROPRIETORS. THAT PARTICULAR EXEMPTION CANNOT BE USED FOR A BUSINESS OFFER. HOW'S THAT YVETTE? YVETTE BROOKS-WILLIAMS: THAT'S AWESOME. AND IF YOU COULD SPEAK UP JUST A LITTLE BIT MORE YOUR SOUND IS SOMEWHAT UP AND DOWN, JUST A LITTLE BIT. EVETTE DAVIS: OKAY. YVETTE BROOKS-WILLIAMS: LET ME SEE. CAN WE JUST TAKE ONE MORE QUESTION? EVETTE DAVIS: YEAH, LET'S DO IT. YVETTE BROOKS-WILLIAMS: OKAY. SO, ARE VIRTUAL CURRENCY CRYPTO CONSIDERED ASSETS FOR THE FINANCIAL ANALYSIS? EVETTE DAVIS: OKAY, THAT'S ANOTHER GOOD QUESTION. SO, FOR THE PURPOSE OF FINANCIAL ANALYSIS, VIRTUAL CURRENCIES INCLUDING BITCOIN, WHICH IS THE MOST POPULAR KIND, RIGHT, CAN BE TREATED AS AN EXCHANGE OF PROPERTY FOR TAX PURPOSES. THE FINANCIAL ANALYSIS WILL CONSIDER INTEREST IN THE CURRENCY TO DEVELOP A REASONABLE COLLECTION POTENTIAL. YVETTE BROOKS-WILLIAMS: THANK YOU, EVETTE. THOSE WERE SOME GREAT QUESTIONS, AUDIENCE, AND EVETTE, YOUR ANSWERS WERE AWESOME. BUT BEFORE WE MOVE FOR OUR NEXT TOPIC, I THINK I'LL JUST GO AHEAD AND ASK OUR FIRST POLLING QUESTION. AUDIENCE, I HOPE YOU'RE READY. HERE'S OUR FIRST POLLING QUESTION.

WHAT TYPE OF OFFER WOULD YOU SUBMIT IF THE TAXPAYER WAS DOUBTING THE ACCURACY OF THE LIABILITY? A, DOUBT AS TO COLLECTABILITY; B, EFFECTIVE TAX ADMINISTRATION; C, DOUBT AS TO LIABILITY OR D; ALL OF THE ABOVE? TAKE A MOMENT AND CLICK THE RADIO BUTTONS THAT BEST ANSWERS THE QUESTION, WHAT TYPE OF OFFER WOULD YOU SUBMIT IF THE TAXPAYER WAS DOUBTING THE ACCURACY OF THE LIABILITY? A, DOUBT AS TO COLLECTABILITY; B, EFFECTIVE TAX ADMINISTRATION; C, DOUBT AS TO LIABILITY OR D; ALL OF THE ABOVE?

I'LL GIVE A FEW MORE SECONDS TO MAKE YOUR SELECTION. OKAY, WE'RE GOING TO STOP THE POLLING NOW AND LET'S SHARE THE CORRECT ANSWER ON THE NEXT SLIDE. AND THE CORRECT RESPONSE IS C, DOUBT AS TO LIABILITY. LET'S SEE, AND LET'S SEE HOW MANY OF YOU RESPONDED CORRECTLY. I SEE THAT 78% OF YOUR RESPONDED CORRECTLY. EVETTE, CAN YOU CLARIFY FOR ME? EVETTE DAVIS: YEAH, OKAY. SO, C IS THE CORRECT ANSWER. SO, LET'S JUST LOOK AT A, WHEN YOU LOOK AT DOUBT AS TO COLLECTABILITY, THIS IS, REMEMBER, WHEN TAXPAYERS ARE BASICALLY, THEY'RE UNABLE TO PAY THEIR LIABILITY IN FULL. THE IRS IS GOING TO DO A FINANCIAL ANALYSIS TO MAKE THAT DETERMINATION. SO, A IS BASICALLY WHEN TAXPAYERS ARE UNABLE TO FULL PAY THEIR LIABILITY BASED ON FINANCIAL ANALYSIS. WITH ETA, THE EFFECTIVE TAX ADMINISTRATION, THIS IS WHEN REQUIRING FULL PAYMENT WOULD CAUSE AN ECONOMIC HARDSHIP OR UNDERMINE PUBLIC CONFIDENCE THAT THE TAX LAWS ARE BEING ADMINISTRATED IN A FAIR AND EQUITABLE MANNER. SO THAT'S ETA, DOUBT AS TO LIABILITY IS EXACTLY WHAT IT SOUNDS LIKE. THIS IS WHEN THE TAXPAYER, DOUBTS THE ACCURACY OF THEIR LIABILITY. HOW'S THAT? YVETTE BROOKS-WILLIAMS: YOU'RE AWESOME. THANK YOU FOR THAT CLARIFICATION. VERONICA, YOU'RE UP NEXT. AND IT LOOKS LIKE YOU'RE GOING TO COVER OFFER PROCESS AND LIFECYCLE. VERONICA TUBMAN: YES, I AM. THANKS, YVETTE. YVETTE BROOKS-WILLIAMS: THANK YOU. YOU'RE WELCOME. VERONICA TUBMAN: YOU ARE WELCOME. THANK YOU, BOTH LADIES. IN THIS SECTION, OBJECTIVE 2, WE'LL DISCUSS THE OFFER PROCESS AND LIFECYCLE. SO, LET'S MOVE ALONG. YOU'RE EXCITED. SO EXCITED. HOW DOES A TAXPAYER SUBMIT AN OFFER? TAXPAYERS SUBMIT THE OFFER USING THE FORM 656-BOOKLET. NOW THAT BOOKLET INCLUDES THE FOLLOWING. FORM 656, FORM 433-A OIC AND FORM 433-B OIC. THE 656-B INCLUDES INSTRUCTION AND HOW TO COMPLETE THE FORM. TAXPAYERS ARE ALSO ADVISED TO SUBMIT A $2 - I'M SORRY, $205 APPLICATION FEE AND THE INITIAL OFFER PAYMENT IF APPLICABLE. SO, LET'S LOOK A LITTLE CLOSER AT THE INITIAL OFFER. OKAY, SO WE'RE GOING TO TAKE A LOOK AT THE INITIAL OFFER AND THE INITIAL OFFER AMOUNT COULD BE 20% OF A CASH OFFER OR THE FIRST PART OF A PARTICULAR PAYMENT. A TAXPAYER MAY QUALIFY TO WAIVE THESE PAYMENTS AND I KNOW YOU'D SAY SO HOW THEY CAN DO THAT. SO, THE APPLICATION FEE AND THE INITIAL OFFER PAYMENT BY CHECKING THE LOW-INCOME CERTIFICATION BOX AND THAT'S RIGHT ON FORM 656. THIS LOW-INCOME CERTIFICATION IS BASED ON THE TAXPAYER'S MOST CURRENT ADJUSTED GROWTH INCOME OR WE CALL IT AGI. THE AGI IS DERIVED FROM THE TAXPAYER'S MOST RECENT FILED TAX RETURN. YOU KNOW, IT IS IMPORTANT TO NOTE THAT THE LOW-INCOME CERTIFICATION ONLY APPLIES TO INITIAL INDIVIDUAL OFFERS. OFFER SUBMITTED AS TO DOUBT AS TO LIABILITY ARE ALSO EXEMPT FROM SUBMITTING THESE PAYMENTS. TAXPAYERS THEN ALSO USE THE OIC PRE-QUALIFIER TOOL THAT IS AVAILABLE ON IRS.GOV. SO, WE'LL MAKE SURE THAT YOU SAVE THAT AS A FAVORITE. THE OIC PRE-QUALIFIER TOOL IS NOT MANDATORY BUT CAN BE USED TO SEE IF THEY QUALIFY FOR AN OFFER IN COMPROMISE, YOU KNOW AND THAT'S BEFORE FILLING OUT ALL THAT PAPERWORK. THE QUESTIONNAIRE FORMAT ASSISTS IN GATHERING THE INFORMATION NEEDED AND PROVIDES INSTANT FEEDBACK AS TO ELIGIBILITY, BASED ON THE INFORMATION PROVIDED. THE TOOL WILL ALSO ASSIST IN DETERMINING THE PRELIMINARY OFFER AMOUNT FOR CONSIDERATION OF AN ACCEPTABLE OFFER. BUT JUST REMEMBER, THAT IS NOT A GUARANTEE OF ACCEPTANCE. YVETTE BROOKS-WILLIAMS: VERONICA, THANK YOU FOR THAT. CAN YOU MOVE CLOSER TO YOUR MIC, YOU SOUND FAR AWAY? VERONICA TUBMAN: I SOUND FAR AWAY AND YOU KNOW WHAT, AND I DON'T WANT TO BE FAR AWAY, I WANT TO BE A CLOSE AS POSSIBLE. IS THAT BETTER? YVETTE BROOKS-WILLIAMS: THAT'S BETTER. THAT'S EXACTLY WHERE WE WANT YOU, AS CLOSE AS POSSIBLE, THANK YOU. VERONICA TUBMAN: SURE, MUCH APPRECIATED. BECAUSE I WANT TO MAKE SURE THAT WE GET THIS TO THE INFORMATION THAT WE'RE SHARING. ALL RIGHT. NOW, LET'S LOOK AT THE OFFER IN COMPROMISE APPLICATION LIFECYCLE. NOW THERE ARE SEVEN STEPS IN THE LIFECYCLE. THE FIRST IS OFFER RECEIVED, THE SECOND IS THE PROCESSABILITY DETERMINATION, THE THIRD IS WHEN THE CASE IS BEING BUILT, THE FOURTH, OFFERS IN CENTRALIZED OFFER IN COMPROMISE, AND WE CALL THAT COIC. THE FIFTH, OFFERS IN FIELD OFFER IN COMPLIANCE AND THAT'S THE FOIC. THE SIXTH IS THE OIC INVESTIGATION AND LASTLY, OIC CLOSURE. WE WILL GO OVER EACH ONE IN THE NEXT SLIDE, BUT FIRST, YVETTE, HOW ABOUT ANOTHER POLLING QUESTION? EVETTE DAVIS: ABSOLUTELY. YVETTE BROOKS-WILLIAMS: ABSOLUTELY. AUDIENCE LOTS OF GREAT INFORMATION BEING PRESENTED, BUT LET'S PAUSE FOR OUR SECOND POLLING QUESTION. HOW MUCH IS THE OFFER APPLICATION FEE? IS IT, A, $186; B, $150; C, $205; OR D, NONE OF THE ABOVE? I'LL GIVE YOU A FEW MORE SECONDS TO MAKE YOUR SELECTION. OKAY, WE'RE GOING TO STOP THE POLLING NOW AND LET'S SHARE THE CORRECT ANSWER ON THE NEXT SLIDE. AND THE CORRECT RESPONSE IS C, $205. SO, LET'S SEE HOW MANY OF YOU RESPONDED CORRECTLY. WOO-HOO, EVEN THOUGH YOU WERE FAR FROM THE MIC, VERONICA, THEY GOT THAT INFORMATION. 89% OF YOU RESPONDED CORRECTLY AND THAT'S A GREAT RESPONSE RATE. THANK YOU SO MUCH.

THE APPLICATION FEE CAN BE FOUND IN THE FORM 656-BOOKLET AND VERONICA, IT LOOKS LIKE I'M GOING TO TURN IT BACK TO YOU. VERONICA TUBMAN: THANKS, AGAIN, YVETTE. AND JUST REMEMBER, EVERYBODY, YOU CAN FIND FORM 656-BOOKLET ONLINE AND MAKE SURE THAT YOU EARMARK THAT AS ONE OF YOUR FAVORITES. SO, AS STATED, LET'S LOOK AT STEP ONE, OFFER RECEIVED. THE ADDRESS FOR THESE LOCATIONS CAN BE FOUND IN THE FORM 656-B BOOKLET. THE OFFER IN COMPROMISE PROGRAM CURRENTLY DOES NOT HAVE THE ABILITY TO RECEIVE ORIGINAL OFFER APPLICATION ELECTRONICALLY. ALL OFFER APPLICATIONS MUST BE SUBMITTED BY MAIL, AND MUST CONTAIN THE TAXPAYER'S ORIGINAL SIGNATURE, THAT'S VERY IMPORTANT. SENDING IN YOUR APPLICATION IS BASED UPON YOUR STATE OF RESIDENCE. SO, LET'S TAKE AN EXAMPLE. IF YOU RESIDE IN ALASKA, ALABAMA, ARKANSAS, CONNECTICUT AND SOME OTHER STATES, YOU WILL MAIL YOUR APPLICATION TO THE BROOKHAVEN IRS CENTER COIC UNIT, P.O. BOX 9007, AND THAT'S IN HOLTSVILLE, NEW YORK, 11742-9007.

SO, LET'S TAKE A LOOK AT ANOTHER PROCESSING CENTER. IF YOU LIVE IN ARIZONA, CALIFORNIA, COLORADO AND HAWAII AND IT'S JUST TO NAME A FEW STATES. YOU MAIL YOUR APPLICATION TO THE MEMPHIS IRS CENTER COIC UNIT, P.O. BOX 30803, AMC, AND THAT'S IN MEMPHIS, TENNESSEE, 38130-0803. SO, LET'S TAKE A LOOK AT THE SECOND STEP, PROCESSABILITY. NOW, ONCE AN OFFER IS RECEIVED, OUR PROCESS EXAMINER WILL MAKE A DETERMINATION IF THE OFFER IS PROCESSABLE OR NOT. THE OFFER WILL BE DEEMED NOT PROCESSABLE IF, ONE, THE TAXPAYER IS CURRENTLY IN A BANKRUPTCY STATUS. TWO, THE TAXPAYER DID NOT SUBMIT THE APPLICATION FEE AND OR THE REQUIRED INITIAL PAYMENT WITH THE OFFER OR THEY DID NOT CHECK THE LOW-INCOME CERTIFICATION BOX ON FORM 656, WHICH WAIVE THESE PAYMENTS. THIRD, IF ALL THE LIABILITIES INCLUDED ON THE FORM 656, HAVE BEEN REFERRED TO THE DEPARTMENT OF JUSTICE. THAT'S THE CONCERN AS WELL. AND FOURTH, IF THERE ARE UNASSESSED LIABILITY, AN OFFER IS SUBMITTED SOLELY TO COMPROMISE A PARTICULAR TAX PERIOD FOR WHICH THERE ARE NO LIABILITY ASSESSED TO THE TAXPAYER ACCOUNT AND OUR INTERNAL SYSTEM DO NOT INDICATE A RETURN HAS BEEN FILED. NO LIABILITY. OFFER SUBMITTED TO WHICH THERE ARE NO LIABILITY DUE ON THE TAXPAYER'S ACCOUNT AND INTERNAL SYSTEM, AND IT DOES NOT INDICATE THAT THERE ANY PENDING ASSESSMENTS FROM EXAMINATION OR THE UNDERREPORTING FUNCTION. AND LASTLY, THE TOTAL AMOUNT OF THE PAYMENT LISTED AS A DEPOSIT AND THE TAXPAYER DID NOT CHECK THE LOW-INCOME CERTIFICATION BOX. SO, LET'S JUST NOTE RIGHT HERE, EXCUSE ME, IF AN OFFER IS DETERMINED TO BE NOT PROCESSABLE, THE APPLICATION FEE WILL BE RETURNED ALONG WITH THE FORM 656, AND THE PAYMENT WILL BE APPLIED TO THE TAXPAYER'S ASSESSED LIABILITY. WHEN YOU OFFER IS DEEMED PROCESSABLE, THE PROCESS EXAMINER WILL, THEY'RE GOING TO ALLOW THE OFFER IN OUR AUTOMATED OFFER IN COMPROMISE OR AOIC SYSTEM, THEY'RE GOING TO VERIFY THE TAXPAYER HAS SUBMITTED THE APPROPRIATE FORM, AND THEY'RE GOING TO VERIFY THE TAXPAYER HAS SUBMITTED THE APPLICATION FEE, REQUIRED PAYMENT OR CHECKED THE LOW-INCOME CERTIFICATION BOX ON FORM 656. THIRD, SO LET'S TAKE A LOOK AT CASE BUILDING. DURING CASE BUILDING, THE PROCESS EXAMINER WILL IDENTIFY IF THE OFFER HAS TO BE TRANSFERRED TO FIELD OFFER IN COMPROMISE, TALKED ABOUT THAT EARLIER, FOIC. TWO, TO PERFECT THE OFFER, AND THEN THE QUESTION IS, IS FORM 656 SIGNED? IS THE FORM 433 COMPLETED AND SIGNED AS REQUIRED. THIRD, REQUEST ANY SHORTFALL PAYMENT IF ANY EXIST OF THE INITIAL OFFER AMOUNT. FOURTH, WE'LL CONDUCT A COMPLIANCE CHECK ON ESTIMATED TAX PAYMENT, FEDERAL TAX DEPOSIT AND ANY UNFILED TAX RETURN AND FIFTH, THE PROCESS EXAMINER WELL THEY'RE GOING TO SEND OUT A LETTER ACKNOWLEDGING RECEIPT OF THE OFFER. THAT LETTER IS GOING TO BE LIKE A CHECK. IT WILL INCLUDE A REQUEST FOR INFORMATION AND OR ANY MISSING PAYMENTS OR RETURNS NEEDED TO PERFECT THE OFFER IF APPLICABLE. AND LASTLY, THE PROCESS EXAMINER, WELL THEY'RE GOING TO ASSIGN THE CASE TO THE APPROPRIATE QUEUE TO AWAIT ASSIGNMENT TO AN OFFER EXAMINER. AND JUST A NOTE HERE, IF THE LETTER INCLUDES A REQUEST FOR INFORMATION AND OR MISSING PAYMENTS OR RETURN AND THE TAXPAYER DOES NOT COMPLY WITH A REQUEST WITHIN THE DUE DATE IN THE LETTER, SO THERE'S GOING TO BE AN ESTABLISHED DUE DATE FOR THE INFORMATION, THE OFFER MAYBE RETURNED WITHOUT FURTHER CONTACT. ALRIGHTY. SO, BEFORE WE CONTINUE WITH THE OIC LIFECYCLE, LET'S HAVE ANOTHER POLLING QUESTION, YVETTE. YVETTE BROOKS-WILLIAMS: THANKS, VERONICA. AUDIENCE, I HOPE YOU'RE READY. HERE'S OUR THIRD POLLING QUESTION. WHERE DO YOU MAIL THE FORM 656 APPLICATION FOR OFFER IN COMPROMISE? A, BROOKHAVEN AND MEMPHIS; B, HAWAII AND PUERTO RICO; C, CALIFORNIA AND TEXAS; OR D. ALL OF THE ABOVE? TAKE A MOMENT AND CLICK THE RADIO BUTTON THAT BEST ANSWERS THE QUESTION, WHERE DO YOU MAIL THE FORM 656 APPLICATION FOR OFFER IN COMPROMISE? A, BROOKHAVEN AND MEMPHIS; B, HAWAII AND PUERTO RICO; C, CALIFORNIA AND TEXAS; OR D.

ALL OF THE ABOVE? I'LL GIVE YOU A FEW MORE SECONDS TO MAKE YOUR SELECTION. OKAY, WE'RE GOING TO STOP THE POLLING NOW AND LET'S SHARE THE CORRECT ANSWER ON THE NEXT SLIDE. AND THE CORRECT RESPONSE IS A, BROOKHAVEN AND MEMPHIS. WOO-HOO, I SEE THAT 88% OF YOU RESPONDED CORRECTLY. THANK YOU SO MUCH. VERONICA? VERONICA TUBMAN: OKAY. YOU ARE WELCOME. SO, EVERYBODY JUST REMEMBER THAT WE HAVE TWO CENTRALIZED SITES, AND YOU GOT THAT RIGHT, YOU WERE RIGHT ON POINT. BROOKHAVEN AND MEMPHIS WHERE WE SEND THE OFFER DEPENDS ON THE STATE WHERE YOU LIVE, AND YOU CAN ALWAYS GO IN IRS.GOV AND VERIFY IT. ALRIGHTY, LET'S SEE. EVETTE, YOU'RE UP NEXT WITH MORE ABOUT OFFERS. EVETTE DAVIS: ALL RIGHT. THANK YOU SO MUCH, VERONICA. GREAT JOB, EVERYBODY. NOW LET'S LOOK AT STEP NUMBER FOUR, OFFERS IN THE CENTRALIZED OFFER IN COMPROMISE CAMPUSES. SO, THESE ARE THE OFFERS LISTED ON THE SCREEN THAT ARE INVESTIGATED IN THE COIC. THE CENTRALIZED OFFER IN COMPROMISE CAMPUSES. THAT INCLUDES, THOSE FOR YOUR WAGE EARNERS. THIS IS FROM INDIVIDUALS WHO RECEIVED W2 AT THE END OF THE YEAR, IT WILL ALSO INCLUDE SELF-EMPLOYED FOLKS, THOSE INDIVIDUALS QUALIFIED TO FILE A SCHEDULE C WITH THEIR 1040S AND IT ALSO INCLUDES CERTAIN BUSINESSES. THESE ARE THE OFFERS FOR THE CORPORATIONS, LIMITED LIABILITY COMPANIES, PARTNERSHIPS, ESTATES AND TRUSTS AND THE OTHER ONE THAT YOUR CENTRALIZED OFFER IN COMPROMISE CAMPUSES INVESTIGATE ARE THE DOUBT AS TO LIABILITY OFFERS, OKAY. SO, WAGE-EARNERS, SELF-EMPLOYED CERTAIN BUSINESSES, DOUBT AS TO LIABILITY OFFERS ARE ALL HANDLED BY COIC, THE CENTRALIZED OFFER IN COMPROMISE CAMPUSES. NEXT, STEP NUMBER FIVE, OFFERS IN THE FIELD OFFER IN COMPROMISE OR FOIC. THESE ARE THE OFFERS THAT ARE INVESTIGATED IN THE FIELD, INCLUDES, BUSINESSES, PAYROLL SERVICE PROVIDERS, DOUBT AS TO LIABILITY OFFERS ON TRUST FROM THE RECOVERY PENALTIES OR TFRP, AS WELL AS PERSONAL LIABILITIES FOR EXCISE TAX. THEY ALSO INVESTIGATE TAXPAYERS WHO RESIDE ABROAD, TAXPAYERS WHO HAVE DOCKETED TAX COURT CASES, AS WELL AS OFFERS IN WHICH THERE IS THE DEPARTMENT OF JUSTICE INVOLVEMENT. OKAY, NOW ON TO STEP SIX, THE OFFER IN COMPROMISE INVESTIGATION. SO, WHEN THE OFFER IS ASSIGNED TO AN OFFER EXAMINER OR OE, OR AN OFFER SPECIALIST, AN OS, THEN THE SIGNED EMPLOYEE WILL, ONE, VERIFY COMPLIANT; TWO, CONDUCT RESEARCH USING INTERNAL AND EXTERNAL SOURCES. THREE, THEY WILL COMPLETE THE FINANCIAL ANALYSIS, NOW THIS IS GOING TO INCLUDE VERIFYING THE TAXPAYER'S SUBMITTED INFORMATION AND SOME ADDITIONAL ASSET AND INCOME THAT MAYBE FOUND DURING THEIR RESEARCH, IF THERE IS ANY. THE ASSIGNED EMPLOYEE WILL ALSO REACH OUT TO THE TAXPAYER OR THE POWER OF ATTORNEY VIA TELEPHONE, OR THROUGH CORRESPONDENCE AND THIS IS GOING TO TAKE PLACE TO SECURE THE SUBSTANTIATION IF IT'S NECESSARY. AND THEN THE FOURTH THING THEY'LL DO IS, WHETHER IT'S THE OFFER EXAMINER OR THE OFFER SPECIALIST, THEY WILL MAKE A PRELIMINARY DETERMINATION ON THE CASE, THEN SUBMIT IT THE RECOMMENDATION ITSELF TO THE MANAGER FOR APPROVAL. NOW, THERE'S A SET OF DIFFERENT OR POSSIBLE RECOMMENDATIONS, RIGHT, ACCEPTANCE WHERE WE'RE ALL GOING FOR. THE OFFER AMOUNT IS EQUAL TO OR MORE THAN THE REASONABLE COLLECTION POTENTIAL AS CALCULATED BY THAT OFFER EXAMINER OR OFFER SPECIALIST. NOW, IN CERTAIN SITUATIONS THE OFFER AMOUNT LESS - IS LESS THAN THE CALCULATED REASONABLE COLLECTION POTENTIAL, IT MAY BE RECOMMENDED FOR ACCEPTANCE IF THERE ARE SPECIAL CIRCUMSTANCES. OKAY, ANOTHER POSSIBLE RECOMMENDATION MAYBE A REJECTION. THE OFFER AMOUNT IF LESS THAN THE CALCULATED REASONABLE COLLECTION POTENTIAL AND THERE ARE NO SPECIAL CIRCUMSTANCES THAT EXIST. BUT ANOTHER POSSIBLE RECOMMENDATION IS THAT THE OFFER MAYBE RETURNED. AND THESE ARE OFFERS WHERE - THESE OFFERS ARE RETURNED IF THE TAXPAYERS ARE NOT OR THEY FAILED TO STAY IN COMPLIANCE WITH PAYMENTS AND FILING AT ANY TIME DURING THE RECEIPT OF THE OFFER, AND OR DURING THE INVESTIGATION. OFFERS CAN ALSO BE RETURNED IF THE TAXPAYERS FAIL TO PROVIDE ALL REQUESTED CRITICAL INFORMATION. SO, PLEASE, PLEASE RESPOND AND RETURN INFORMATION THAT IS REQUESTED IN A TIMELY MANNER. ANOTHER POSSIBLE RECOMMENDATION, WITHDRAWAL. THERE ARE TWO TYPES OF WITHDRAWALS, THE FIRST IS VOLUNTARY, AND THIS IS REQUESTED BY THE TAXPAYER OR THE REPRESENTATIVE. AND THIS CAN BE DONE BY PHONE OR THROUGH CORRESPONDENCE. THE SECOND IS A MANDATORY WITHDRAWAL, AND THIS MAY HAPPEN WHEN THE TAXPAYER FAILS TO SUBMIT SUBSEQUENT PAYMENTS ON THE PERIODIC PAYMENT OFFER OPTION AND THEN AND, IN THAT CASE, THE LOW-INCOME CERTIFICATION BOX WAS NOT CHECKED ON THE FORM 656. AND THEN FINALLY WE HAVE TERMINATION. UNFORTUNATELY, THIS IS WHEN THE TAXPAYER MAY HAVE DIED DURING THE OFFER INVESTIGATION, THEN AT THAT POINT, THE INVESTIGATION CANNOT CONTINUE AND THEREFORE IS TERMINATED. YVETTE BROOKS-WILLIAMS: EVETTE, IT LOOKS LIKE WE HAVE A FEW MORE QUESTIONS FROM THE PARTICIPANTS. EVETTE DAVIS: AWESOME. YVETTE BROOKS-WILLIAMS: THINK WE HAVE TIME TO ANSWER THOSE NOW. EVETTE DAVIS: I THINK WE DO, WE GOT PLENTY OF TIME. YES, YES.

YVETTE BROOKS-WILLIAMS: AWESOME. SO, WHAT HAPPENS IF THE OFFER IS FILED JOINTLY AND ONE SPOUSE DIES? VERONICA TUBMAN: THANK YOU, EVETTE. I'LL TAKE THAT ONE. EVETTE DAVIS: OKAY, GO FOR IT. YVETTE BROOKS-WILLIAMS: THANK YOU, VERONICA. VERONICA TUBMAN: SURE, YOU'RE WELCOME. THESE ARE REALLY GOOD QUESTIONS. SO, LET'S TALK ABOUT IT. WHAT HAPPENS IF THE OFFER IS FILED JOINTLY AND ONE SPOUSE DIES? NOW THIS IS THE COMMON QUESTION. WHEN SPOUSES HAVE SUBMITTED A JOINT OFFER AND ONE SPOUSE DIES, WHILE THE OFFER IS BEING INVESTIGATED. THE IRS CAN NO LONGER CONSIDER THE JOINT OFFER UNFORTUNATELY. THE SURVIVING SPOUSE HAS THE OPTION OF AMENDING THE JOINT OFFER TO MAKE THE OFFER ONLY FOR HIM OR HERSELF. IF THE SURVIVING SPOUSE DOES NOT AMEND THE JOINT OFFER, THE IRS MUST RETURN THE JOINT OFFER. AND FOR MORE INFORMATION ON THAT, YOU CAN REFER TO AN INTERNAL REVENUE MANUAL 5.8.10.4.1 AND THAT'S RELATED TO DEATH OF A TAXPAYER AS A REFERENCE. YVETTE BROOKS-WILLIAMS: THANK YOU SO MUCH, VERONICA. I HAVE ANOTHER QUESTION FOR ONE OF THE LADIES. I SUBMITTED A FORM 656 FOR A HUSBAND AND WIFE, WHY IS THE IRS NOW ASKING FOR ADDITIONAL FORM 656?

VERONICA TUBMAN: OKAY, YVETTE. I'LL TAKE THAT ONE AS WELL. JUST REMEMBER, THIS IS ALL BASED ON WHOM IS LEGALLY RESPONSIBLE FOR THE TAX LIABILITY. IF THE LIABILITIES ARE ALL JOINT ASSESSMENTS AND THAT'S FOR FORM 1040 TAX RETURN THAT ARE MARRIED FILING JOINTLY. NOW, ONLY ONE OFFER WILL BE NEEDED IN THAT AND THE ONLY TIME WE REQUIRE AN ADDITIONAL FORM 656 IS WHEN THERE ALSO SEPARATE ASSESSMENTS INVOLVED. SO LET'S LOOK AT AN EXAMPLE. THIS MAY INCLUDE THE HUSBAND AND WIFE HAVING JOINT ASSESSMENT, BUT THE HUSBAND ALSO OWES FORM 941 TAX LIABILITIES AND MAYBE THAT'S FROM A SOLE PROPRIETORSHIP HE HAD. A WIFE LEGALLY IS NOT LIABLE FOR THOSE 941 TAXES. AND THUS, TWO SEPARATE OFFERS ARE REQUIRED BY LAW. SO THOSE ARE TWO SEPARATE ENTITIES. ONE OFFER WILL INCLUDE THE HUSBAND'S 1040, AND HIS 941 TAX LIABILITIES FROM THE SOLE PROPRIETORSHIP. AND THE ASSESSMENT OFFER WILL INCLUDE THE WIFE'S 1040 TAX. SO, IF ALL LIABILITIES ARE FROM RETURN THAT WERE FILED AS MARRIED FILING JOINTLY AND TWO SEPARATE OFFERS WILL BE REQUIRED EVEN IF THE COUPLE IS STILL MARRIED AND LIVING TOGETHER. SO, ANOTHER EXAMPLE IS, IF THERE IS THE TRUST FUND RECOVERY PENALTY, OR WE CALL IT, TFRP ASSESSMENT. NOW THIS IS THE CIVIL PENALTY ASSESSED TO INDIVIDUAL FOR UNPAID EMPLOYMENT TAXES FROM A BUSINESS. EVEN IF THE HUSBAND AND THE WIFE ARE BOTH ASSESSED, THE IDENTICAL TRUST FUND RECOVERY PENALTY, TWO OFFERS ARE REQUIRED, BECAUSE THE ASSESSMENTS ARE IN ONE OF THEIR NAMES SEPARATELY. THIS IS CALLED THE TRUST - THIS IS BECAUSE THE TRUST FUND RECOVERY PENALTY AS WE STATED, ARE SEPARATE ASSESSMENTS, AGAIN, UNDER THE INTERNAL REVENUE CODE, 6672. SO JUST KEEP IN MIND, THERE SHOULD BE AS MANY FORMS 656 AS THERE ARE ENTITIES. AN ENTITY IS THE INDIVIDUAL OR THE BUSINESS THAT IS ASSESSED THE LIABILITY. SO, PLEASE SEE INTERNAL REVENUE MANUAL, 5.8.3.5 FOR COMPLETE DETAILS ON THE NUMBER OF OFFERS TO SUBMIT AND I HOPE THAT THAT'S HELPED.

HEY, EVETTE, YOU'RE UP. EVETTE DAVIS: AWESOME. WOW, THOSE WERE SOME GREAT. AND WE'VE GOT SOME PEOPLE ON HERE TRYING TO GET SOME OFFERS THROUGH. THANKS, VERONICA. THANKS, YVETTE. LET'S LOOK AT STEP NUMBER 7, WHICH IS THE OFFER IN COMPROMISE CLOSURE. SO, WHEN THE OFFER MANAGER RECEIVE THE OFFER FOR A REVIEW, THE MANAGER WILL REVIEW FOR THE APPROPRIATENESS OF THE RECOMMENDATION, THEY'LL REVIEW THE DETERMINATION LETTERS AND ANY INTERNAL DOCUMENT, THEY'RE GOING TO SIGN THE LETTERS AND ANY INTERNAL DOCUMENT, AND THEN CLOSE THE CASE ON THE AUTOMATED OFFER IN COMPROMISE SYSTEM. NOW, ON SOME INSTANCES, THE OFFER MAY NEED ADDITIONAL REVIEW BY THE FOLKS LIKE IRS COUNCIL, THE ATTORNEYS, AS THEY MAY REVIEW ANY ACCEPTANCE RECOMMENDATIONS OF OFFERS WITH LIABILITIES GREATER THAN $50,000, YOU MAY NEED ADDITIONAL REVIEW BY THE INDEPENDENT ADMINISTRATIVE REVIEWERS, ON THIS WILL BE FOR ALL REJECTION RECOMMENDATIONS. THESE REVIEWERS ENSURE THE LEGITIMACY OF THE REJECTION RECOMMENDATIONS. THEN WE HAVE ACCEPTED OFFERS WHICH ARE FORWARDED TO THE MONITORING OFFER IN COMPROMISE FUNCTION, WHERE THEY ARE MONITORED FOR ADHERENCE TO THE FORM 656 CONTRACT. THESE ACCEPTED OFFERS ARE MONITORED FOR FIVE YEARS AND DURING THOSE FIVE YEARS THE TAXPAYERS MUST MAINTAIN PAYMENT AND FILING COMPLIANCE. OKAY, YVETTE, BEFORE WE MOVE ON, DO WE HAVE TIME FOR ANOTHER POLLING QUESTION? YVETTE BROOKS-WILLIAMS: OF COURSE, WE DO. AUDIENCE, HERE'S OUR FINAL POLLING QUESTION. WHICH TYPE OF OFFER IS NOT INVESTIGATED IN THE FIELD? IS IT A, INTERNATIONAL TAXPAYERS; B, SELF-EMPLOYED; C, DOCKETED TAX COURT; OR D, PAYROLL SERVICE PROVIDERS? TAKE A MOMENT AND CLICK THE RADIO BUTTON THAT BEST ANSWERS THE QUESTION, WHICH TYPE OF OFFER IS NOT INVESTIGATED IN THE FIELD? A; INTERNATIONAL TAXPAYERS; B, SELF-EMPLOYED; C, DOCKETED TAX COURT; OR D, PAYROLL SERVICE PROVIDERS. I'LL GIVE YOU A FEW MORE SECONDS TO MAKE YOUR SELECTION. OKAY, WE'RE GOING TO STOP THE POLLING NOW AND LET'S SHARE THE CORRECT ANSWER ON THE NEXT SLIDE. AND THE CORRECT RESPONSE IS B, SELF-EMPLOYED. LET'S SEE HOW MANY OF YOU RESPONDED CORRECTLY. UH-OH, 48% OF YOU RESPONDED CORRECTLY. EVETTE, CAN YOU CLARIFY? EVETTE DAVIS: YEAH, THIS IS NOT - THANKS, YVETTE, NOW THIS IS NOT A TRICK QUESTION. BUT YEAH, SO WHICH TYPE OF OFFER IS USUALLY NOT INVESTIGATED IN THE FIELD?

SO, B IS THE CORRECT ANSWER, SELF-EMPLOYED OFFERS, BECAUSE SELF-EMPLOYED OFFERS ARE INVESTIGATED BY THE CENTRALIZED OFFER IN COMPROMISE CAMPUSES. ALL OTHERS LISTED ABOVE ON THE SLIDE ARE INVESTIGATED BY FIELD SPECIALIST. ALL RIGHT. SO, AGAIN, LET'S JUST LOOK AT THIS JUST FOR A MOMENT AS A QUICK REVIEW. WITH OFFERS IN THE FIELD, THOSE OFFERS THAT ARE INVESTIGATED INCLUDES THE BUSINESSES, PAYROLL SERVICE PROVIDERS, DOUBT AS TO LIABILITY OFFERS AND THAT'S ON THOSE TRUST FUND RECOVERY PENALTY TAXPAYERS WHO RESIDE ABROAD, THEY INVESTIGATE DOCKETED TAX COURT CASES, AS WELL AS OFFERS WHERE THE DEPARTMENT OF JUSTICE IS INVOLVED. FOR THE CENTRALIZED OFFER IN COMPROMISE CAMPUSES, THEY INVESTIGATE WAGE-EARNERS, THOSE FOLKS THAT GET THOSE W2S, SELF-EMPLOYED INDIVIDUALS AND THOSE ARE THE FOLKS WHO QUALIFIED BY THE SCHEDULE CS WITH YOUR 1040S AS WELL AS THE CERTAIN OTHER BUSINESSES AND DOUBT AS TO LIABILITY OFFERS. A LITTLE BIT OF A - NOT A TRICK QUESTION, BUT YEAH SO THAT'S WHY THE ANSWER IS B. ALL RIGHT. YVETTE BROOKS-WILLIAMS: EVETTE, THANK YOU SO MUCH FOR THE CLARIFICATION. AUDIENCE, I HOPE YOU FOUND IT AS HELPFUL AS I DID. AND EVETTE, I'M GOING TO TURN IT RIGHT BACK OVER TO YOU NOW. EVETTE DAVIS: ALL RIGHT, ALL RIGHT, SOUNDS GOOD. SO LET'S GO AHEAD AND LOOK AT SOME INTERESTING FACTS ABOUT THE OFFER IN COMPROMISE AND SOME RECENT STATISTICS.

THERE'S A LOT ON THIS SLIDE, SO I'LL GIVE YOU A MINUTE TO KIND OF TAKE IT IN, BUT WHAT YOU'RE LOOKING AT HERE IS TOTAL DISPOSITIONS OF 46,485 OFFERS. THOSE THAT WERE NOT PROCESSABLE, 22% ACCEPTANCES, 32% REJECTIONS, 17% RETURNS, 19% AND WITHDRAWAL OR TERMINATION, 11%. SO, LET'S TALK ABOUT JUST A FEW OF THESE FIGURES THAT WE SEE. THESE PERCENTAGES REPRESENT A NATIONAL PROGRAM TOTAL, EXCLUDING APPEALS CASES AND THE FIGURES ARE ROUNDED, SO AS A RESULT, YOU'VE PROBABLY NOTICED THAT THEY DON'T REPRESENT 100% OF THE OFFERS, RIGHT. THE FIRST IS, NOT PROCESSABLE OFFERS.

SO NOT PROCESSABLE OFFERS ACCOUNTED FOR 22% OF THE TOTAL INVENTORY FOR FISCAL YEAR 2021. THERE ARE FOUR MAIN REASONS THAT AN OFFER IS DETERMINED TO BE NOT PROCESSABLE. THE FIRST IS THE APPLICANT IS IN AN OPEN BANKRUPTCY, OKAY. YOU CAN'T FILE AN OFFER IF YOU'RE AN OPEN BANKRUPTCY. THE NEXT, THE REQUIRED FEE IS NOT PAID WITH THE APPLICATION. THEN THE TAXPAYER IS NOT COMPLIANT WITH FILING TAX RETURN. AND THEN THE FOURTH REASON IS DETERMINED NOT TO BE NOT PROCESSABLE IS NONE OF THE INITIAL PAYMENT IS INCLUDED WITH THE APPLICATION. NOW, ANOTHER AREA TO NOTE, IS THE NUMBER OF REJECTIONS.

REJECTIONS ARE WHEN THE SERVUCE CANNOT ACCEPT THE TAXPAYERS OFFER AMOUNT AND THE IRS OFFERS THEM AN OPPORTUNITY TO APPEAL THEIR RECOMMENDATION. COMMON REASONS FOR REJECTION OF AN OFFER INCLUDE, THE REASONABLE COLLECTION POTENTIAL CAN'T OR WON'T BE PAID BY THE TAXPAYER. THE TAXPAYER CAN ACTUALLY FULL PAY OR THERE IS MISSING OR INCORRECT INFORMATION WHICH RESULTS IN AN INACCURATE DETERMINATION OF THE REASONABLE COLLECTION POTENTIAL. AND THAT WOULD MEAN THE APPROPRIATE OFFER AMOUNT IS NOT BEING OFFERED. AND THIS IS WHY IT'S STILL IMPORTANT THAT THE IRS RECEIVES UPDATED INFORMATION FOR FINANCIAL INVESTIGATIONS. THERE ARE RETURNS - THE RETURN LISTED ON THE SLIDE ACCOUNTED FOR 19% OF THE FISCAL YEAR 2021 INVENTORY. THE MAIN REASON OFFERS ARE RETURNED ARE THAT TAXPAYERS DO NOT STAY IN COMPLIANCE OR THEY DON'T RESPOND TO A REQUEST FOR INFORMATION. OKAY. IT'S INTERESTING TO NOTE THAT TAXPAYERS MAY WITHDRAW THEIR OFFERS AT ANY TIME DURING THE PROCESS. AND JUST AS A REMINDER, IF A TAXPAYER DIES WHILE THE IRS IS IN THE PROCESS OF EVALUATING THEIR OFFER, THEN THE SERVICE CAN NO LONGER CONSIDER THE OFFER. THE OFFER IS CONSIDERED TERMINATED AT THAT TIME. THERE ARE SPECIALTY OFFER IN COMPROMISE THAT'S LIKE THE OTHER BUSINESS UNITS, THEY CONTINUE TO RECOVER FROM COVID EVACUATIONS AND ARE OVERCOMING CHALLENGES TO ENSURE THAT THE IRS PROVIDES TOP QUALITY SERVICE. OKAY, VERONICA. LET ME TURN THE NEXT SECTION OVER TO YOU. VERONICA TUBMAN: THANKS, EVETTE FOR SHARING THOSE 2021 PROGRAM RESULTS. KIND OF INTERESTING INFORMATION.

OBJECTIVE 3, PROVIDE HELPFUL HINTS. NOW, LET'S MOVE ON. SO HERE ARE SOME HELPFUL HINTS YOU CAN SHARE WITH TAXPAYER. ADVISE THE TAXPAYER TO STAY CURRENT AND THAT'S REALLY IMPORTANT WITH ALL FILING AND PAYMENT REQUIREMENTS. IN ADDITION TO STAYING CURRENT WITH ANY ESTIMATED TAX PAYMENTS THAT COME DUE, AND FEDERAL TAX DEPOSITS DURING THE EVALUATION PROCESS. SO, WE'RE TALKING ABOUT STAY IN COMPLIANT. ALSO, BE SURE THAT TAXPAYER IS AWARE OF THE REQUIREMENTS TO REMAIN CURRENT FOR A MINIMUM OF FIVE YEARS. NOW THAT'S FIVE YEARS AFTER THEIR OFFER IS EXPECTED. AND THAT'S INCLUDING ANY EXTENSION TO FILE OR TIME TO PAY. THAT'S INCLUDED IN COMPLIANCE AS WELL. YOU CAN ALSO ADVISE TAXPAYERS THAT UNLESS THE TAXPAYER QUALIFIES FOR THE LOW-INCOME WAIVER, BE SURE TO INCLUDE ALL REQUIRED FEE AND THE INITIAL OFFER PAYMENTS AND CONTINUE TO MAKE ANY REQUIRED PAYMENTS AS THEY BECOME DUE AND THAT'S DURING THE COURSE OF THE OFFER EVALUATION, BECAUSE YOU WANT TO MAKE SURE THAT YOU STAY UP-TO-DATE ON YOUR PAYMENT DURING THAT EVALUATION PERIOD. FAILURE TO MAKE ANY PAYMENTS DUE DURING THE OFFER EVALUATION IT MAY RESULT IN A MANDATORY WITHDRAWAL OF THE OFFER. AND THAT'S WHEN THE OFFER IS GOING TO BE RETURNED WITH NO APPEAL RIGHTS GIVEN. YOU CAN ADVISE TAXPAYERS THAT THEY CAN MAKE THEIR OFFER PAYMENT AND APPLICATION FEES THROUGH THE ELECTRONIC FEDERAL TAX PAYMENT SYSTEMS AND WE CALL THAT EFTPS, THAT'S A SAFE SYSTEM TO MAKE ALL YOUR FEDERAL PAYMENT THROUGH. YOU CAN ADVISE THE TAXPAYER AND TO ENSURE THAT THEY RESPOND TIMELY IF AND WHEN THE IRS REQUEST ADDITIONAL INFORMATION. MAKE SURE THEY GET IT IN BEFORE THE DEADLINE THAT'S ESTABLISHED IN THE CORRESPONDENCE. ENCOURAGE USE OF OUR CHECKLIST AND THAT'S INCLUDED IN THE FORM 656-B BOOKLET. AND THAT WILL HELP TO REDUCE OR ELIMINATE THE NEED FOR IRS TO REQUEST ADDITIONAL INFORMATION. YOU CAN ALSO ADVISE TAXPAYERS TO ENSURE THEY LIST ALL PROPERTIES, ASSETS AND BUSINESS INTEREST ON THE APPLICABLE FINANCIAL STATEMENTS AND THAT'S FORM 433-A OIC OR FORM 433-B OIC AND MAKE SURE THEY PROVIDE ACCURATE VALUE. THIS INCLUDES THE VIRTUAL CURRENCY, WE TALKED ABOUT BITCOIN A LITTLE EARLIER AND ANY OTHER ASSETS, AND LASTLY, ANY SUBSTANTIATION THAT ARE REQUIRED TO BE SENT IN WITH THE APPLICATION AND JUST MAKE SURE THAT INFORMATION IF IT'S CURRENT AS IT POSSIBLY CAN BE. AND FINALLY, HERE ARE SOME REMINDERS. ADVISE TAXPAYERS TO EXPLORE ALL OTHER PAYMENT OPTIONS FIRST BEFORE SUBMITTING AN OFFER BEFORE SUBMITTING AN APPLICATION FOR AN OFFER IN COMPROMISE.

ENCOURAGE THE TAXPAYER TO USE THE OIC PRE-QUALIFIER TOOL TO DETERMINE THAT THE TAXPAYER IS ELIGIBLE TO FILE AND OFFER REALLY GOOD TOOL TO HELP THAT DETERMINATION. ENSURE FORM-656 AND THE FORM-433-A AND B OIC ARE ACCURATELY COMPLETED AND MAKE SURE THAT THEY HAVE ORIGINAL SIGNATURES.

COPIED SIGNATURES ARE NOT ACCEPTABLE. THE FINANCIAL FORM 433-A OIC AND FORM 433-B OIC THEY HAVE CHECKLISTS AT THE END OF THEM, AND THAT WILL HELP YOU MAKE SURE THAT YOU'RE PROVIDING ALL THE GOOD INFORMATION THAT WE NEED TO MAKE THE EVALUATION. USE THE CHECKLIST TO ENSURE YOU HAVE INCLUDED.

EVERYTHING NECESSARY TO PROCESS AND INVESTIGATE THE OFFER. THERE IS ALSO A CHECKLIST AT THE END OF THE 656 BOOKLET, SO WE GOT CHECKLIST THAT HELP YOU THROUGH EVERYTHING. MAKE SURE ALL THE ITEMS ARE ENCLOSED IN THE OFFER PACKAGE. JUST REMEMBER, WE HAVE A HOST OF OUTREACH VIDEOS ON THE IRS.GOV WEBSITE. SOME OF THE VIDEOS WILL HELP YOU ASSIST AND EDUCATE THE TAXPAYER IN DETERMINING AND COMPLETING THE OFFER APPLICATION. YOU KNOW IT'S A GREAT VISUAL RESOURCE HANDS-ON AND WE'RE ENCOURAGE THEIR USE. THIS INCLUDES VIDEOS ON HOW TO COMPLETE FORM 433-A OIC, HOW TO COMPLETE FORM 433-B OIC, HOW TO COMPLETE FORM 656 OIC AND THE FINAL OIC PACKAGE CHECKLIST. SO TODAY, WE'VE GIVEN AN OVERVIEW OF THE WORLD OF OFFER IN COMPROMISE AND PROVIDED HELPFUL HINTS THAT WILL ASSIST YOU AND HELP YOU TO UNDERSTAND THE OFFER PROCESS. AND THE MAIN GOAL IS TO ASSIST YOUR CLIENTS IN SUBMITTING A PROCESSABLE OFFER. YOU KNOW, WE WOULD REALLY LIKE TO THANK YOU FOR YOUR TIME, YOUR ENERGY AND YOUR ATTENTION TODAY, AND ENCOURAGE YOU TO SUBMIT QUESTIONS IF YOU HAVE THEM.

WELL, LOOK AT THAT, YVETTE, I THINK IT'S TIME FOR QUESTIONS. YVETTE BROOKS-WILLIAMS: YES. THANKS, VERONICA. HELLO AGAIN. IT'S ME YVETTE BROOKS-WILLIAMS AND I'LL BE MODERATING THE Q&;A SESSION.

BEFORE WE START THE Q&;A SESSION, I JUST WANT TO THANK EVERYONE FOR ATTENDING TODAY'S PRESENTATION, WORLD OF OFFER IN COMPROMISE. EARLIER, I MENTIONED WE WANT TO KNOW, WHAT QUESTIONS YOU HAD FOR OUR PRESENTERS. SO HERE IS YOUR OPPORTUNITY. IF YOU HAVEN'T INPUT YOUR QUESTIONS THERE IS STILL TIME, GO AHEAD AND CLICK ON THE DROPDOWN ARROW NEXT TO ASK A QUESTION FIELD. TYPE IN YOUR QUESTION AND CLICK SEND. WE HAVE FOUR POLICY TAX ANALYSTS FROM OUR OFFER IN COMPROMISE DEPARTMENT JOINING US TO ANSWER YOUR QUESTION. JENNIFER BATES HAS WORKED WITH THE INTERNAL REVENUE SERVICE 27 YEARS AND HAS WORKED WITH THE OFFER PROGRAM FOR 11 YEARS. BILLGRODZICKI HAS WORKED WITH THE INTERNAL REVENUE SERVICE FOR 35 YEARS AND HAS WORKED WITH THE OFFER PROGRAM FOR 16 YEARS. CATRINA DUGGER HAS WORKED WITH THE IRS 28 YEARS AND HAS WORKED WITH THE OFFER PROGRAM FOR 12 YEARS. AND THEN, BEN GALFOND HAS WORKED WITH THE IRS 21 YEARS AND HAS WORKED WITH THE OFFER PROGRAM FOR 15 YEARS. SO, YOU HAVE A WHOLE HOST OF EXPERTISE TO ANSWER YOUR QUESTIONS. BUT ONE THING BEFORE WE START, WE MAY NOT HAVE TIME TO ANSWER ALL THE QUESTIONS SUBMITTED, BUT WE WILL ANSWER AS MANY AS TIME ALLOWS. SO, LET'S GET STARTED SO WE CAN GET TO AS MANY QUESTIONS AS POSSIBLE. SO, LET'S GET STARTED. I HAVE A QUESTION FOR CATRINA - LET'S SEE HERE - FOR CATRINA, FOR THE PRE-QUALIFIER. DOES TAX DEBT ENTERED NOT INCLUDE ANY INTEREST OR PENALTY ALSO DUE? AND ALSO, IF YOU DON'T MIND, CAN YOU DESCRIBE THE PRE-QUALIFIER TOOL IN GENERAL, DISCUSSING WHAT IT IS, WHAT IS CONSIDERED INCOME ET CETERA AND DOES THAT PRE-QUALIFIER TOOL POPULATE THE 656. CATRINA DUGGER: GOOD AFTERNOON AND THANK YOU SO MUCH FOR THAT QUESTION. AND I JUST WANT - I'M JUST SO GLAD TO SEE ALL THE PARTICIPANTS TODAY. AND THANK YOU FOR THAT QUESTION. SO JUST TO START OFF, THE OIC PRE-QUALIFIER TOOL WHICH IS ALSO FOUND ON IRS.GOV WEBSITE, IT REQUESTS THAT THE TAXPAYER FIRST OF ALL ENTER THEIR TOTAL TAX LIABILITY WHICH SHOULD ALSO INCLUDE YOUR PENALTIES AND INTEREST. THE TOOL ALSO ASKS FOR YOUR TOTAL IRS TAX DEBT AND MAKE SURE YOU INCLUDE THAT IN WHOLE DOLLARS. THE PRE-QUALIFIER TOOL, IT UTILIZES DATA TO KIND OF DETERMINE A PROPOSED ELIGIBILITY FOR THE OFFER PROGRAM. WHILE WE KNOW THAT TOOL DOES NOT GUARANTEE ACCEPTANCE, IT DOES PROVIDE A SNAPSHOT OF THE POTENTIAL OFFER ELIGIBILITY AND SOME PAYMENT OPTIONS WHICH INCLUDE YOUR LUMP SUM CASH OFFERS FOR YOUR PERIODIC PAYMENT OFFERS. THE TOOL CAN ALSO SHOW THAT A TAXPAYER CAN FULL PAY THE AMOUNT. BUT WE DON'T WANT TO DISCOURAGE ANY TAXPAYERS FROM SUBMITTING IN OFFER, BECAUSE WE MAKE OUR FINAL DECISION BASED ON A OIC COMPLETED APPLICATION AND A FULL FINANCIAL INVESTIGATION. AND JUST AS A REMINDER, THE OIC PRE-QUALIFIER TOOL IS USED ONLY FOR OUR INDIVIDUAL TAXPAYERS ONLY. AND IT DOES NOT GO FOR BUSINESSES. AND IT DOESN'T POPULATE THE FORM 656, SO YOU'RE ACTUALLY GOING TO HAVE TO COMPLETE THAT. AND YOU CAN GET THE FORM 656-BOOKLET AND COULD BE DOWNLOADED AGAIN FROM THE IRS.GOV WEBSITE. AND MAKE SURE, WHEN YOU'RE COMPLETING THE FORM 656, REMEMBER, THAT YOU'RE GOING TO NOTE THAT EACH TAX PERIOD AND EACH YEAR THAT THE TAX PERIOD ARE ACTUALLY OWED. I HOPE THAT CLEARS YOU THAT. THANK YOU. YVETTE BROOKS-WILLIAMS: THANK YOU, CATRINA. THANK YOU SO MUCH. BILL, WHAT HAPPENS WHEN THE TAXPAYER HAS ACTUAL EXPENSES THAT EXCEEDS THE STANDARD AMOUNT? AND THEY CALCULATE THEY CAN MAKE PAYMENT, BUT DON'T HAVE THE DISPOSABLE INCOME IN REALITY? BILL GRODZICKI: THANK YOU VERY MUCH FOR THAT QUESTION. THAT'S A REAL GOOD QUESTION.

BASICALLY, WE HAVE THIS STANDARD THAT WE USE ALLOWABLE LIVING EXPENSE. AND THESE MAYBE ALLOWED IF THEY COULD PROVIDE DOCUMENTATION THAT'S JUSTIFIES AND SUBSTANTIATE THOSE ADDITIONAL EXPENSE. THESE EXPENSES THEY MUST BE REASONABLE IN AMOUNT FOR THE SIZE OF THEIR FAMILY, AND THE GEOGRAPHIC LOCATION AND AS WELL AS THERE COULD ALSO BE SOME VERY INDIVIDUAL AND UNIQUE CIRCUMSTANCES. SO, WE TEND TO TAKE THINGS LIKE THIS ON A CASE BY CASE BASIS, WE'RE NOT APPLYING LIKE ANY KIND OF A - IT WOULDN'T BE SITTING LIKE A PRECEDENT IF WE DID IT ON ONE OFFER AND DIDN'T DO IT ON ANOTHER, IT'S GOING TO BE, AGAIN, IT'S VERY UNIQUE CIRCUMSTANCES AND ARE GOING TO BE TAKEN ON A CASE BY CASE.

SO, HOPE THAT HELPS CLEAR IT OUT. YVETTE BROOKS-WILLIAMS: YES, THANK YOU SO MUCH, BILL. JEN, - EXCUSE ME, OUR POA HAS A CLIENT WHO HAS LARGE TAX LIABILITY BUT MOVED FULL TIME TO LEBANON. CAN I USE NATIONAL STANDARDS FOR SOME OF THE LIVING EXPENSES, OR I MUST ONLY USE ACTUAL NUMBERS?

JENNIFER BATES: THANK YOU, YVETTE AND GOOD AFTERNOON, EVERYONE. THANK YOU FOR THAT QUESTION. THAT IS A GREAT QUESTION. UNFORTUNATELY, THE ALLOWABLE LIVING EXPENSE STANDARDS THAT WE HAVE, ARE BOTH THE NATIONAL OF COURSE AND THE LOCAL STANDARDS ARE NOT AVAILABLE FOR TAXPAYERS WHO LIVE ABROAD.

THEY WILL HAVE TO SUBMIT THE ACTUAL EXPENSE. THEY WILL NEED TO PROVIDE THAT ALONG WITH VERIFICATION IN ORDER FOR US TO CONSIDER THEIR EXPENSES ABROAD. I HOPE THAT ANSWERS THE QUESTION.

YVETTE BROOKS-WILLIAMS: THANK YOU, JEN. BILL, I'M GOING TO COME BACK TO YOU. WHAT IS THE MONITORING OFFER IN COMPROMISE PAYMENT PROCESS? BILL GRODZICKI: AGAIN, YES, VERY GOOD QUESTION. SO, BASICALLY WHAT THIS IS, PAYMENTS ON AN OFFER SHOULD CORRESPOND TO THE ACCEPTED TERMS THAT ARE ON THE FORM 656 YOUR OFFER IN COMPROMISE FORM AND OR THAT FORM 14640 WHICH WOULD BE THE ADDENDUM TO FORM 656.

THE MONITORING OFFER IN COMPROMISE GROUP IS GOING TO MONITOR ALL ACCEPTED OFFERS FOR COMPLIANCE WITH THE OFFER TERMS INCLUDING MAKING ANY REQUIRED PAYMENTS. SO, IF TAXPAYER HAS A QUESTION ABOUT THEIR PAYMENT SCHEDULE OR REQUESTS AN EXTENSION OF TIME TO MAKE A PAYMENT. AND TYPICALLY, ONLY ONE EXTENSION IS GOING TO BE GRANTED OVER THE COURSE OF YOUR OFFER TERMS. THE MONITORING OFFER IN COMPROMISE TAX EXAMINER WILL SEND OUT A LETTER WITH 274-C WHICH WE SENT TO CONFIRM WHAT HAVE BEEN REQUESTED. SO, IF PAYMENT IS MISSED, THE TAXPAYER WILL ALSO RECEIVE A LETTER IN THIS CASE, IT'D BE A LETTER 2909-C TO EXPLAIN WHAT IS NEEDED AND GIVE THEM THE OPPORTUNITY TO GET CAUGHT OFF. A TAXPAYER CANNOT MAKE UP THE MISSING PAYMENTS, BUT THEN THE OFFER IS DEFAULTED AND UNFORTUNATELY THE ORIGINAL BALANCE DUE PLUS ANY PENALTIES AND INTEREST THAT HAVE ACCRUED FROM THE DATE THAT WE ACCEPTED THE OFFER, LESS OF COURSE PAYMENTS THAT WERE RECEIVED WHILE THE OFFER WITHIN PROGRESS AND ANYTHING THAT WERE SUBSEQUENTLY MADE. IT'S GOING TO BE REINSTATED AND TAXPAYER WILL HAVE TO START ON ALL OVER AGAIN IN A RECEIVED COLLECTION NOTICES AND THINGS OF THAT NATURE. DOESN'T PREVENT THEM FROM MEETING ANOTHER OFFER IN COMPROMISE, BUT IT DOES START THE PROCESS AGAIN FROM SCRATCH. WE HAVE SOME VARIOUS REFERENCES THAT WE HAVE IN CERTAIN IRMS, THE FIRST ONE WOULD BE, IRM 5.19.7.2.1, THE NEXT WOULD BE IRM 5.19.7.14.1 AND FINALLY WE HAVE 5.19.17.14.2, THESE ARE ALL WITHIN THE MONITORING OFFER IN COMPROMISE INTERNAL REVENUE MANUAL. YVETTE BROOKS-WILLIAMS: THANKS, BILL. LET'S SEE IF I CAN TAKE BEN FOR A QUESTION. BEN, ON A BUSINESS OFFER IN COMPROMISE, DOES THE BUSINESS HAVE TO MAKE PAYMENTS WHILE AWAITING THE OFFER? BEN GALFOND: HI, EVERYONE. AND THANK YOU FOR THAT QUESTION. SO, THERE IS A LOT TO THIS QUESTION JUST TALKING ABOUT PAYMENTS, SO I'M GOING TO DO MY BEST TO ANSWER FROM EVERY ANGLE. FIRST OFF, IF A BUSINESS REQUESTS A PERIODIC PAYMENT OFFER, THEN THE ANSWER IS YES. YOU GOT TO MAKE PAYMENTS THAT MUST BE SUBMITTED EACH MONTH WHILE THAT OFFER IS BEING EVALUATED. NOW IF THE BUSINESS JUST REQUEST THAT LUMP SUM CASH OFFER, THEN ONLY THAT 20% INITIAL PAYMENT IS DUE WITH THE FORM 656, OF COURSE, WITH ANY BUSINESS OFFER IN COMPROMISE, YOU HAVE TO SUBMIT THAT ONE-TIME APPLICATION FEE OF $205, THAT WE REVIEWED EARLIER WHEN YOU SUBMIT THAT OFFER. AND PLEASE, PLEASE DO NOT FORGET, ANY BUSINESS EXCEPT FOR SOLE PROPRIETORSHIPS, DO NOT QUALIFY FOR THAT LOW-INCOME WAIVER AND MUST ALWAYS SUBMIT OFFER PAYMENTS IN AN APPLICATION FEE. IN ADDITION, WE TALK ABOUT PAYMENTS, I'M NOT SURE YOU KNOW WHAT KIND OF ANGLE THE QUESTION WAS COMING IN THAT. BUSINESSES MUST ALWAYS REMAIN IN COMPLIANCE THROUGHOUT THE ENTIRE OFFER PROCESS AND SO WHAT ITS COMPLIANCE MEAN, WE WENT OVER THIS BEFORE, TAX RETURN FILINGS, FEDERAL TAX DEPOSITS AND ES PAYMENTS IF APPLICABLE. NOW TALKING ABOUT PAYMENTS, WE DIDN'T TALK ABOUT INSTALLMENT AGREEMENT PAYMENTS, WHAT IF A BUSINESS IS ON A CURRENT INSTALLMENT AGREEMENT, IF A CURRENT INSTALLMENT AGREEMENT IS THERE, AND THEN AN IS OFFER IS SUBMITTED, THOSE ARE THE PAYMENTS THAT WILL START, A BUSINESS NO LONGER NEEDS TO CONTINUE MAKING INSTALLMENT AGREEMENT PAYMENTS WHILE THAT OFFER IS BEING EVALUATED. AND ONE LAST ITEM, I JUST WANT TO MAKE SURE EVERYONE IS AWARE OF THIS, THERE WAS A RECENT POLICY CHANGE REGARDING COMPLIANCE, A BUSINESS MUST BE CURRENT WITH ALL FEDERAL TAX DEPOSITS, FOR THE TWO QUARTERS PRIOR TO OFFER SUBMISSION, RIGHT IN ADDITION TO THE CURRENT QUARTER THAT THE OFFER IS SUBMITTED AND THEN ALWAYS STAY CURRENT THROUGHOUT THE OFFER EVALUATION. SO I KNOW THERE WAS A LOT TO THAT. HOPEFULLY THAT ANSWER IT. YVETTE BROOKS-WILLIAMS: OH, YES. I'M SURE IT ANSWERED IT. OKAY, SO LET ME SKIP OVER TO CATRINA. WHAT DOES OIC CONSIDER ITS INCOME, CATRINA?

IF YOU COULD ANSWER THAT FOR US. CATRINA DUGGER: DEFINITELY, DEFINITELY AND THANK YOU AGAIN AND THANK YOU AGAIN FOR THE QUESTION. SO, WHAT DO WE CONSIDER AS INCOME. AN INCOME OF COURSE IS USED FOR THE BASIS OF DETERMINING YOUR ACCEPTABILITY OF AN OFFER. AND IT CAN COME FROM VARIOUS SOURCES, INCLUDING WHAT WE CONSIDER GROSS WAGES, SOCIAL SECURITY, PENSION AND UNEMPLOYMENT. AND WE CONSIDER - ALSO WE CONSIDER INTEREST AND DIVIDENDS. WE CONSIDER NET BUSINESS INCOME, AND EVEN THE NET RENTAL INCOME. SO, THE OFFER PROGRAM ALSO CAN CONSIDER ANY OF THE INCOME RECEIVED FROM ALIMONY, CHILD SUPPORT, ANYTHING TO ASSIST IN DEVELOPING A TRUE FINANCIAL PICTURE TO DETERMINE ELIGIBILITY FOR THIS PARTICULAR PROGRAM. SO, I HOPE THAT ANSWERS IT THAT WE CAN - INCOME CAN COME FROM A VARIOUS NUMBER OF SOURCES. YVETTE BROOKS-WILLIAMS: THANK YOU, CATRINA. AND AUDIENCE, WE HAVE TIME FOR ONE MORE QUESTION. SO LET ME ASK TO BEN. BEN, THE QUESTION IS, I HAVE CLIENTS WHO OWN BUSINESSES AND ARE LOOKING FOR FILE OFFERS. WHAT DO THEY NEED TO DO BEFORE SUBMITTING THE OFFER? BEN GALFOND: ALL RIGHT, THANK YOU FOR THAT QUESTION IN OTHER BUSINESS OFFER IN COMPROMISE QUESTION, SO I'M GOING TO KIND OF BUILD OFF MY PREVIOUS ANSWER FIRST AND FOREMOST, BUSINESSES MUST BE IN FILING AND PAYMENT COMPLIANT. WHAT IS FILING COMPLIANT, I MEAN FILING ALL REQUIRED TAX RETURNS FOR THE PAST SIX YEARS, INCLUDING THE CURRENT YEAR. AND PAYMENT COMPLIANCE, IN THE TAX PERIOD MUST BE CURRENT, WITH ALL ESTIMATE TAX PAYMENTS AND OR FEDERAL TAX DEPOSITS, AND AGAIN, LIKE I MENTIONED BEFORE, THE CHANGE IN RECENT GUIDANCE FTDS MUST BE CURRENT FOR THE TWO PREVIOUS QUARTERS PRIOR TO OFFER SUBMISSION AS WELL AS THE QUARTER AT THE OFFER SUBMITTED. AND THEN OF COURSE, COMPLIANCE MUST ALWAYS BE MAINTAINED THROUGHOUT THE OFFER INVESTIGATION. SO THAT IS FIRST AND FOREMOST, FILING AND PAYMENT COMPLIANCE FOR THE BUSINESS. AND, OF COURSE, WHEN A BUSINESS IS SUBMITTING AN OFFER, YOU HAVE TO SUBMIT THE APPLICATION FEE AS WELL AS THE APPLICABLE OFFER PAYMENTS, BECAUSE AGAIN I MENTIONED BEFORE, BUSINESS ENTITIES DO NOT QUALIFY FOR THAT LOW-INCOME WAIVER, OF COURSE, UNLESS IT'S A SOLE PROPRIETORSHIP. NOW, IF YOUR BUSINESS, WHAT DO YOU DO? YOU'RE UNABLE TO UTILIZE THAT PRE-QUALIFIER TOOL ON IRS.GOV, CATRINA MENTIONED THAT BEFORE, THAT TOOL IS FOR INDIVIDUALS ONLY. BUT YOU WANT TO DO IS YOU CAN REVIEW THAT FORM 656-BOOKLET AND YOU'RE GOING TO COMPLETE THE FORM 656 WHICH IS THE OFFER IN COMPROMISE, THAT FORM 656 IS USED BY BOTH INDIVIDUALS AND BUSINESSES, SECTION 2 IS FOR BUSINESSES AND THEN YOU WANT TO COMPLETE THE FORM 433-B OIC, AND THAT'S A COLLECTION INFORMATION STATEMENT FOR BUSINESSES. ONE LAST NOTE, IF YOUR BUSINESS SUBMITTING AN OFFER, MAKE SURE YOU READ THROUGH THAT FORM 656-BOOKLET, THERE WAS A SECTION ON TRUST FUND TAXES AND THAT'S EXTREMELY IMPORTANT TO REVIEW. ALL RIGHT, SO FOR BUSINESS OFFERS. THANK YOU. YVETTE BROOKS-WILLIAMS: THANK YOU, SO MUCH, BEN. WE APPRECIATE THE INFORMATION. OKAY, SO AUDIENCE, SADLY I'M GOING TO HAVE TO SAY THAT'S ALL THE TIME WE HAVE FOR QUESTIONS. I WANT TO THANK OUR PRESENTERS AND OUR SUBJECT MATTER EXPERTS FOR SHARING THEIR KNOWLEDGE AND AND EXPERTISE AND FOR ANSWERING YOUR QUESTION. BEFORE WE CLOSE THE Q&;A, EVETTE, WHAT KEY POINTS THAT YOU WANT THE ATTENDEES TO REMEMBER FROM TODAY'S WEBINAR? EVETTE DAVIS: THANKS, YVETTE. AND YEAH, I AGREE WITH YOU. GREAT QUESTIONS, GREAT INFORMATION AND THANKS FOR ALLOWING ME TO HAVE SOME KEY POINTS. OKAY, FOLKS SO THERE ARE THREE TYPES OF OFFERS, DOUBT AS TO COLLECTABILITY, DOUBT AS TO LIABILITY, AND THE EFFECTIVE TAX ADMINISTRATION. REMEMBER THAT AN OFFER IS NOT THE FIRST OPTION, PLEASE CONSIDER THE OTHER OPTIONS WE MENTIONED FULL PAY, BORROWING, AND INSTALLMENT AGREEMENTS SO ON AND SO FORTH. AND REMEMBER FOLKS, SUBMIT THE OFFER USING THE MOST RECENTLY REVISED FORM 656 WHICH I JUST CHECKED TO CONFIRM IS, THERE IS A RECENTLY REVISED FORM 656-BOOKLET IS APRIL 2022, SO IF YOU SUBMIT AN OFFER TODAY MAKE SURE YOU'RE USING THE FORM 656 FOR ITS REVISED APRIL 2022, AND IT WILL ALSO INCLUDE IN THE BOOKLET OF FORM 433 A OR B WITH THE OIC OFFER IN COMPROMISE SUFFIX BEHIND IT THAT MUST BE USED, THIS PARTICULAR FORM, THE 433-A OIC AND THE FORM 433-B OIC IS SPECIFIC FOR AN OFFER IN COMPROMISE. AND THEN THE OTHER THING, MAIL YOUR OFFER IN COMPROMISE TO THE CORRECT OFFER IN COMPROMISE SITE, BASED ON THIS STATE THAT YOU RESIDE, BROOKHAVEN, NEW YORK OR MEMPHIS, TENNESSEE ARE THE TWO LOCATIONS. ANOTHER REMINDER, THERE ARE SEVEN STEPS IN THE OFFER IN COMPROMISE LIFECYCLE. THERE ARE GREAT OFFER IN COMPROMISE VIDEOS AVAILABLE AT WWW.IRSVIDEOS.GOV/OIC. OKAY, YVETTE, THAT'S ALL WE HAVE FOR KEY POINTS. BACK TO YOU.

YOU'RE PROBABLY DOUBLE-MUTED. YVETTE BROOKS-WILLIAMS: OH, THERE WE GO. CAN YOU HEAR ME NOW?

THANKS, EVETTE. AUDIENCE, WE ARE PLANNING ADDITIONAL WEBINARS THROUGHOUT THE YEAR. TO REGISTER FOR ALL UPCOMING WEBINARS, PLEASE VISIT IRS.GOV, KEYWORD SEARCH WEBINARS AND SELECT THE WEBINARS FOR TAX PRACTITIONERS OR WEBINARS FOR SMALL BUSINESSES. WHEN APPROPRIATE, WE WILL BE OFFERING CERTIFICATES AND CE CREDIT FOR UPCOMING WEBINARS. AND ONE OF THE UPCOMING WEBINARS WE HAVE, NEXT IS ON JUNE 9TH AND IT WILL BE ON FOREIGN INVESTMENT AND REAL PROPERTY TAX ACT, FIRPTA. AND IT'S CURRENTLY POSTED ON IRS.GOV. WE DO INVITE YOU TO VISIT OUR VIDEO PORTAL AT WWW.IRSVIDEOS.GOV, AND IT IS THERE YOU CAN VIEW ARCHIVE VERSIONS OF OUR WEBINARS AND PLEASE NOTE, CONTINUE ON EDUCATION CREDIT OR CERTIFICATES OF INFLATION ARE NOT OFFERED IF YOU VIEW ANY VERSION OF OUR WEBINARS AFTER - EXCUSE ME, THE LIVE BROADCAST - SORRY. AGAIN, A BIG THANK YOU TO EVETTE AND VERONICA FOR A GREAT WEBINAR AND TO OUR TEAM FOR SHARING THEIR EXPERTISE AND FOR ANSWERING YOUR QUESTIONS. AND I ALSO WANT TO THANK YOU OUR ATTENDEES FOR ATTENDING TODAY'S WEBINAR, WORD OF OFFER IN COMPROMISE. IF YOU ATTENDED TODAY'S WEBINAR FOR AT LEAST 50 MINUTES FROM THE OFFICIAL START TIME OF THE WEBINAR, YOU WILL QUALIFY FOR A ONE POSSIBLE CE CREDIT, AGAIN, THE TIME WE SPENT CHATTING BEFORE THE WEBINAR STARTED DOESN'T COUNT TOWARDS THE 50-MINUTE. IF YOU ARE ELIGIBLE FOR THE CONTINUED EDUCATION FROM THE IRS, AND REGISTER WITH YOUR VALID PTIN, YOUR CREDIT WILL BE POSTED IN YOUR PTIN ACCOUNT. IF YOU QUALIFY AND HAVE NOT RECEIVED YOUR CERTIFICATE AND OR CREDIT BY JUNE 16TH, PLEASE EMAIL US AT CL.SL.WEB.CONFERENCE.TEAM@IRS. GOV. THE EMAIL ADDRESS IS SHOWN ON THE SLIDE AS WELL.

NOW, IF YOU'RE INTERESTED IN FINDING OUT WHO YOUR LOCAL STAKEHOLDER LIAISON IS, YOU MAY SEND US AN EMAIL USING THE ADDRESS SHOWN ON THIS SLIDE AND WE WILL GLADLY SEND YOU THAT INFORMATION. WE WOULD APPRECIATE IT, IF YOU WOULD TAKE A FEW MINUTES TO COMPLETE A SHORT EVALUATION BEFORE YOU EXIT. IF YOU'D LIKE TO HAVE MORE SESSIONS LIKE THIS ONE, LET US KNOW IF YOU HAVE THOUGHTS ON HOW WE CAN THEM BETTER, PLEASE LET US KNOW THAT AS WELL. NOW, IF YOU HAVE A REQUEST FOR FUTURE WEBINAR TOPICS OR PERTINENT INFORMATION YOU WOULD LIKE TO SEE IN AN IRS FACTSHEET, TAX TIP OR FAQ ON IRS.GOV, THEN PLEASE INCLUDE YOUR SUGGESTIONS IN THE COMMENT SECTION OF THE SURVEY. CLICK THE SURVEY BUTTON ON THE SCREEN TO BEGIN, IF IT DOESN'T COME UP, TRY TO MAKE SURE YOU'VE DISABLED YOUR POPUP-BLOCKER. AND I JUST WANT TO SAY, IT HAS BEEN AN ABSOLUTE PLEASURE TO BE HERE WITH YOU AND ON BEHALF OF THE INTERNAL REVENUE SERVICE AND OUR PRESENTERS, WE WOULD LIKE TO THANK YOU FOR ATTENDING TODAY'S WEBINAR. IT'S IMPORTANT FOR THE IRS TO STAY CONNECTED WITH THE TAX PROFESSIONAL COMMUNITY, INDIVIDUAL TAXPAYERS, INDUSTRY ASSOCIATIONS ALONG WITH FEDERAL, STATE AND LOCAL GOVERNMENT ORGANIZATIONS, YOU MAKE OUR JOB A LOT EASIER BY SHARING THE INFORMATION THAT ALLOWS FOR PROPERTY TAX REPORTING. THANKS AGAIN FOR TAKING TIME OUT OF YOUR DAY TO ATTEND TODAY'S WEBINAR AND WE HOPE YOU FIND THE INFORMATION HELPFUL. WE CERTAINLY ENJOYED SHARING THAT WITH YOU. YOU MAY EXIT THE WEBINAR AT THIS TIME.