© Copyright 2021

Inside Secrets to Offers-in-Compromise

Eric L. Green, Esq.

ERIC L. GREEN, ESQ. Eric is a managing partner in Green & Sklarz LLC, a boutique tax firm with offices in Connecticut and New York. The focus of Attorney Eric L. Green’s practice is civil and criminal taxpayer representation before the Department of Justice Tax Division, Internal Revenue Service and state Departments of Revenue Services. Eric has been recognized by Connecticut Super Lawyers in the field of Tax. Attorney Green is a past Chair of the Executive Committee of the Connecticut Bar Association’s Tax Section. Eric is a Fellow of the American College of Tax Counsel (“ACTC”). Eric was the 2010 Nolan Fellow of the American Bar Association and has served as Chair of the American Bar Association’s Closely Held Businesses Tax Committee. Attorney Green is a frequent lecturer on tax topics for many national organizations, including Insightful Accountant, CCH, the NAEA, the NATP, the ABA Tax Section and the Connecticut Society of CPAs. Attorney Green has served as adjunct faculty at the University of Connecticut School of Law. He is the author and lecturer of the IRS Representation Certificate Program with the University of Connecticut School of Business, and has served as a columnist for CCH’s Journal of Practice & Procedure. He is the founder of Tax Rep LLC which coaches accountants and attorneys on building their own IRS Representation practices, and is the host of the weekly Tax Rep Network Podcast. Mr. Green is the author of The Accountant’s Guide to IRS Collection, The Accountant’s Guide to Resolving Tax Debts and The Accountant’s Guide to Resolving Payroll Tax Debts. He is a contributing author for Advocating for Low Income Taxpayers: A Clinical Studies Casebook, 3rd Edition, and has also been quoted in USA Today, Consumer Reports, The Wall Street Journal’s Market Watch, TheStreet.com, The Wall Street Journal and CreditCard.com. Attorney Green is also a member of the Connecticut, Massachusetts and New York Bar Associations, as well as the American Bar Association. Attorney Green is admitted to practice in Massachusetts, New York and Connecticut Superior Courts, the United States Tax Court, The Federal Court of Claims and the Federal District Court for Connecticut. Attorney Green received his Bachelor of Business Administration degree in Accounting with a minor in International Business from Hofstra University and is an honors graduate from New England School of Law. He earned a Masters of Laws in Taxation (LL.M.) from Boston University School of Law.

Green & Sklarz LLC, One Audubon Street, 3rd Floor, New Haven, CT 06511

Ph. (203) 285-8545, Fax (203) 286-1311 egreen@gs-lawfirm.com

The Insider’s Guide to IRS

Offers

From all the Offer-in-Compromise workshops and the more than 4,000 questions answered, we present the ultimate insider’s guide to IRS Offers-in-Compromise! This guide will walk you through Offers like no-one else, and includes:

• An overview of the Offer-in-Compromise program • The workflow for those new to Offers and what the step-by-step approach is

to filing an Offer • The top 100 questions asked by attendees with complete, referenced answers • Exhibits and sample letters, including Offer cover letters, appeal letters, and

the IRS Offer Unit’s correspondence from start to finish!

Black Friday Special: $179 $99!

Go to https://TGPublish.com and pre-order today! Release: 12.1.2021

This 100% online program includes five, four-hour modules for a total of 20 hours of learning. They are:

1. IRS Collections 2. Offers-in-Compromise 3. Audits 4. Resolving Payroll Tax Cases 5. Innocent Spouse

TWENTY HOURS of in-depth training, and included in each of the modules are handouts and resources that will help you understand the processes addressed, and familiarize you with IRS forms and correspondence, so you can evaluate each situation and determine what needs to be done to help your client. Register Here:

https://uconn.geniussis.com/Registration.aspx

Inside Secrets to IRS Offers

Eric L. Green, Esq.

What Every Practitioner Needs to Know 

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Managing partner in Green & Sklarz LLC, a boutique tax firm withoffices in Connecticut and New York.

Focus is civil and criminal taxpayer representation before theDepartment of Justice Tax Division, Internal Revenue Service and stateDepartments of Revenue Services.

Has served as a columnist for CCH’s Journal of Practice & Procedure.

Attorney Green is the past Chair of the Executive Committee of theConnecticut Bar Association’s Tax Section.

Eric is a Fellow of the American College of Tax Counsel (“ACTC”).

Eric Green, Esq.

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• Eric is the host of the weekly Tax Rep Network Podcast

• Eric is the founder of Tax Rep Network, an online community designed to help tax professionals build their IRS Representation Practice

• He is the author of the Accountant’s Guides in IRS Representation

• Partnered with UConn and creator of the IRS Representation Certificate Program

• Creator of the Tax Rep App

Eric Green, Esq.

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• 11/29• Early Bird $249 until 11/19/21 (CPAA21 to save an extra 10%)• https://taxrepllc.com/program-20211129-433/

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Celebrating the New Guide

Use CPAA21 and save an additional 10%!

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Types of Offers: Lump Sum, Periodic (deferred), ETA

Offers are driven by RCP –Reasonable Collection Potential 

Its about the 433, and its NOT that complicated!

MUST make sure the client cannot full‐pay!  If they can – no OIC

Offers‐in‐Compromise

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Offer Type: Lump Sum

Net equity in assets + 12 months of future income

20% paid when filed

Balance paid within 5 months of acceptance

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Net equity in assets + 24 months of future income

Monthly payments submitted when filed and ongoing until rejected or if accepted, until done

If rejected and appeal, you do NOT need to keep making payments!

Offer Type: Periodic (Deferred)

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Its all about the 433 RCP calculation:

a. If most is from future income, lump‐sum is cheaper

b. If most is from assets, take the extra time with periodic

Example 1: Client has RCP of $1,500 in assets (car) and future income of $1,000/month.  Lump Sum Offer is $13,500.  Periodic is $25,500.  Go with Lump Sum!

Example 2: Client now has equity of $10,000 in assets and no future income.  Lump Sum and Periodic are both $10,000.  TP choice, but periodic gives them 24 months to pay! 

Lump‐Sum vs Periodic?

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I need to do the RCP calculation

We may have clean‐up to do (Empty LLCs, extra vehicles, etc)

Credited towards the $5,000 we charge for Offers

99.9% closing rate (the Tax Rep App does this too)

The reason for the $1,500 Consult?

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Periodic payments do not need to be paid evenly!

So in Example 2, I would Offer this:

SECRET!

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IRS utilizes 80% quicksale for analysis

Consider MFS vs MFJ before you file and create huge liabilities

Non‐Liable Spouse: separate property vs community property states

Word on Assets

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If you prepare a return with balances due

Can client pay?

If not, step back and work the offer RCP calculation and then walk the case backwards

MFS vs MFJ?

State vs Federal filed first?

Go shopping?

Tax Return Balances

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If in a separate property state, or if the non‐liable spouse owns property in a separate property state, the MFS works great

Couple lives in CA but non‐liable spouse owns a summer home on Cape Cod

If it’s a community property state this does not work well, except for Texas (which uses 50% of the spouse’s share of the community property vs 100%

MFS v MFJ

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If IRS is assessed first it will only allow a percentage of the state payment plan

Example: e‐file both federal and state returns, owe IRS $50,000 and owe NY $10,000, and NY comes after client, who gets into a $500/month payment plan as it was their available future income, IRS will allow 1/6 of that because NY is 1/6 of the total tax debt!

If state filed first, and once assessed and billed then IRS is filed.  Set up state and IRS must allow it in full!

State can be used as leverage to compromise away the IRS

State Return First

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Household income ‐ allowable expenses = future income

Are there expenses we are not spending but could?

Example: husband and wife file the last 4 years and owe the IRS $200,000.  Show future income of $2,000 

a month.  Can fill‐pay so no Offer available.  What if they get health insurance ($500/mo) and self‐employed husband gets disability insurance ($300/mo).  Now future income is $1,200, and so in 10‐years cannot full pay.  Offer amount now is $12,000!

Go Shopping

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Understand the RCP calculation so you can determine:

1. Can the client full‐pay? 

2. Whether the Lump‐Sum or Periodic Offers is the better option

3. Can we adjust the RCP – legitimately – to make the taxpayer unable to full‐pay?

Remember: Its all about the 433 Analysis (“RCP”)!

Takeaways:

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Grab the Books: https://TGPublish.com

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Grab the Books: https://TGPublish.com

Title E-Book Printed Book Both!

Guide to Collections $99 $129 $129

Guide to Resolving Tax Debts

$99 $129 $129

Guide to Resolving Payroll Tax Debts

$99 $129 $129

Insiders Guide to IRS Offers

$99 $129 $129

Complete Set $299 $469 $469

Until November 30th at Midnight!

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Resources

Resources:

Tax Rep Network: www.TaxRepLLC.com and use TAXREPNOW

• Get the 433 workshop for FREE ($249)• Get the Ebooks for FREE ($499)• Save $100 a month for three months while you

build your practice

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Questions?

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