CTRS CTRS Offer in Compromise 2

Question 1

Which IRS forms are required to submit a Doubt as to Collectibility OIC for an individual taxpayer?

Accepted Answer

Form 656 and Form 433-A (OIC)

Answer

Form 9465 and Form 433-A

Answer

Form 843 and Form 1040-X

Answer

Form 12153 and Form 433-B

Question 2

What does the term 'dissipated assets' mean in the context of an OIC investigation?

Accepted Answer

Assets the taxpayer transferred or spent for less than fair market value, which the IRS may add back to RCP

Answer

Assets that have depreciated below their original purchase price

Answer

Assets held in foreign accounts not disclosed on the FBAR

Answer

Assets encumbered by senior creditors

Question 3

During the pendency of an OIC investigation, what happens to the Collection Statute Expiration Date (CSED)?

Accepted Answer

The CSED is tolled (suspended) for the period the OIC is pending plus 30 days

Answer

The CSED continues to run normally

Answer

The CSED is permanently extended by one year

Answer

The CSED is reset to a new 10-year period

Question 4

What is an Effective Tax Administration (ETA) OIC and when is it appropriate?

Accepted Answer

An OIC where the taxpayer can pay the full liability but collection would create economic hardship or be inequitable

Answer

An OIC where the taxpayer disputes the legal validity of the tax assessment

Answer

An OIC filed by tax-exempt organizations only

Answer

An OIC for payroll tax liabilities that cannot be reduced otherwise

Question 5

What is the OIC 'Pre-Qualifier Tool' published by the IRS?

Accepted Answer

An online tool on the IRS website that helps determine if a taxpayer is likely to qualify for an OIC based on income, expenses, and assets

Answer

A software program used internally by IRS examiners to evaluate offers

Answer

A third-party tool that automatically submits OICs electronically

Answer

A calculator that determines the exact offer amount the IRS will accept

Question 6

If the IRS rejects an OIC, what is the taxpayer's next administrative option?

Accepted Answer

File an appeal with the IRS Office of Appeals within 30 days of the rejection letter

Answer

File a petition in Tax Court within 90 days

Answer

Submit a new OIC immediately with a higher offer amount

Answer

Request a Collection Due Process hearing within 30 days