In order to solve your tax problems with an OIC you will need to fill out two IRS forms, Form 656, and Form 433-A (OIC). Assets are what you own. They can be either a purchase or a gift from someone. The most important thing about assets as they relate to tax relief is the equity in an asset. Equity is the difference between how much your asset is worth and how much you owe on the asset. In other words equity is the value of the asset minus the debt you owe. If you buy a car with a value of $15,000 and you owe $10,000 the equity is, you guessed it, $5,000.
Step One of our five step process to tax resolution is Assets Put hyperlink to that blog, which we covered in the previous blog. Step Two is Income and Expenses which we will cover in this blog. Recall that the amount of your offer to the IRS will be a combination of assets and discretionary […]