- quote -

It is generally not wise to indicate on a public message
board that you have this type of income. The inference is
that you also do not report it. Tax practitioners, at least
those on this board, would report that income.

- quote -

You need to sit down with somebody locally that can review
your situation in depth and advise accordingly. You may
find a difference of opinion, you will just have to go with
the one that makes the most sense to you. You should be
able to receive a pro/con argument from whoever gives you a
recommendation. Don't forget that old say, "penny wise and
pound foolish"

Good luck.

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I have contacted three CPA's and/or lawyers about my
situation. They differ whether I should submit an Offer in
Compromise or file for bankruptcy, although all think one or
the other is a good idea.

I'm confused but I need to decide soon for three reasons: 1)
the upcoming "reform" to bankruptcy laws up for passage in
the Senate, 2) the IRS is zeroing in, having already emptied
my checking account once to the tune of $950, 3) a $150 fee
effective Nov. 1 for submitting an OIC.

What do readers in this group think--OIC or bankruptcy?
Either way, I plan to do most of the grunt work myself (get
tax transcripts, credit reports, prepare worksheets, etc.)
and then hire a professional to review my work and finalize.
I can't afford to pay thousands to a lawyer but I will pay
hundreds for value received.

Here's my situation. My debts are almost exclusively to the
IRS…my personal credit situation is pretty good.

Personal info:
- California resident
- Married, one dependent
- One vehicle, a 1993 Toyota, paid off
- Rent, no house
- No other assets such as jewelry, etc.
- Checking account balance of about $500. No savings
or retirement funds
- Combined income $2,400/month. This could increase
dramatically if I get a full-time job
- Under-the-table income amounting to about $300 month.
These are personal checks deposited in my checking account.
- MediCal insurance
- No life insurance
- Credit card balances total about $500. (I want to pay
these off and keep 2 credit cards.)

Tax info:
Below are the tax years, assessed amounts ("Account Balance
Plus Accruals"), and processing dates shown on my IRS
transcript as of 8-14-2003. The first three years are
individual returns, the last two are joint returns with my
wife:

Year Owed Processing Date
1993 $ 11,793.85 09-01-1997
1994 $ 31,618.39 11-15-1999
1995 $ 12,766.95 08-25-1997
1999 $ 4,333.98 08-28-2000
2000 $ 8,815.21 08-12-2002

In addition there is a federal tax lien for $11,029
originally assessed in October 1993 and re-filed in February
2002. Strangely, I can find this lien on my 3-in-1 credit
report but not my IRS transcript.

OIC or bankruptcy?

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