How Washington Tax Services Does the "Offer" Interview / The Income / Expenses / Assets Model
Settling with the IRS is NOT a matter of pulling numbers from the sky. Do not be fooled by advertising that indicates that the IRS settles all case for a certain percentage. . The Offer in Compromise - Doubt as to Collectability is doable pure and simply by working a formula. What follows are the fundamental questions behind qualifying for an Offer in Compromise. If you want Washington Tax Services to assess the chances of you getting an Offer, we will structure our interview on the following worksheet:
OFFER IN COMPROMISE WORKSHEET:
Your MONTHLY INCOME (before taxes):
Spouse's Wages: ______
Business Income (after bus. expenses): _______
Social Security: ______
Child Support/Alimony: _______
Rental income (minus expenditures): ______
TOTAL INCOME : ______
Your MONTHLY EXPENSES
National Standard: _______ This is fixed for food/clothing, etc.
(1 person: $565, 2 people $1029, 3 people: $1227, 4 people: $1450 and $281 for every other as of year 2013)
Housing: ______ Includes all utilities, property taxes, etc. (Each county: has a limitation Housing standard link)
Transportation: ______Transportation standards by region for car insurance, gas, etc.
Car payment #1 ______
Car payment #2 ______
Federal, state, social security, medicare taxes: ________
Medical insurance: ________
Out of pocket medical: _______($60 automatic per person - more if necessary)
Life insurance (term only): _________
Child support/alimony: ________
Judgements/student loans (for yourself not kids): _______
State back tax - payment plan: _______
TOTAL EXPENSES: ________
Disposable income: ______ multiplied by 12 months = the Offer amount _____ PLUS
YOUR ASSETS FOR QUICK SALE:
House equity : 80% of value minus mortgages: _________
Any other assets? Boats, or other assets: _______
TOTAL ASSETS: ____________
SO...DISPOSABLE INCOME MULTIPLIED BY 12 MONTHS PLUS YOUR QUICK SALE ASSETS AND THAT'S YOUR OFFER.
Is it less than what you owe? Then you might do it. However, if your disposable income will pay the IRS off before the taxes expire - then you don't qualify.
There's a lot more to it -- than this, but this worksheet lays the groundwork for the Offer in Compromise interview. CALL US AT 1-888-282-4697 and request an "Offer" interview.
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- How Washington Tax Services Does the “Offer” Interview / The Income / Expenses / Assets Model
- Offer in Compromise—How Long Does it Take to Process?