I desperated need ADVICE.
I am currently working on my OIC. I've done research and know the
parameters!!

??TOTAL LIVING EXPENSES ...(Form 433-A Items 35,36 & 37)
Food.. ...STANDARD ALLOWED $700 ...ACTUAL $850
Housing...Allowable standard $1500 .. Actual $770
Transportation ... STANDARD $350 .. ACTUAL $750

Questions::
1. If I put actual figures, IRS may only use the STANDARD..which ever
is less.(fine)
For FOOD & TRANSPORTATION figures, even though they are
accurate and real...I have no receipts(PROOFS). Most of
which I pay cash. Form 433 says to attach all receipts
etc... Can they reject my figures that I don't submit
receipts for, altogether, or will they just use the
NATIONAL/LOCAL STANDARDS...???

2. For HOUSING .. Can I choose to put NATIONAL STANDARDS
instead of actual figures?
I can only prove $650(rent) & balance of other utilities are
in my fiance's name...cable, phone, etc ... Will the IRS
accept these as my expenses. ( I HONESTLY pay have of all
bills .. my share $120) **It would be ideal to have this
figure at $1200 ..way below standards**

3. If I put STANDARDS in all 3... without most/all receipts,
proofs... Will they question it.?

4. I was told of a processing fee of $150 ...but I was told
that it goes in effect Nov 1st, 2003....Is this correct?

Now, after I send this OIC in to be evaluated, does the IRS,
re-evaluates any expenses, incomes etc, before they
accept/reject the offer.

Thanks in advance!!!

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- quote -

He can go to work at McDonalds and make enough in 5 years to
pay his taxes. So, I would say, no offer.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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Do you think it would be worth submitting an offer in
compromise with the following facts?: Unemployed executive,
48 years old, cahsed in 401K and owes 10,000 on 2002 taxes.
He's been unemployed for 1 1/2 years. Any chance they might
accept a 5,000 offer? I'm guessing he's too young with
future earning potential.

thanks for your advise,
Steve

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