"Harlan Lunsford" <lunstax[at]belllsouth.net> wrote:

- quote -

No. I did some informal research on this over dinner last
Friday. No major changes in the treatment of taxes. One
thing I recall is that P&I on trust fund taxes will also be
dischargeable--previously tax only. There's also a
clarification of the collection statute suspension. I also
remember that the 240 day rule is gone, but it was a three
martini dinner, so I don't remember the specifics.

--
Phil Marti
Clarksburg, MD

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- quote -

reading the above para literlly one might assume that offers
other than lump sum payments are not subject to the 20% DP.

i did a "Find" search on this page and the only reference to
OIC i could find was the friviolous sub. provision.

http://www.congress.gov/cgi-bin/bdqu...;at]L&summ2=m&

the hawk

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Bryan Kellar wrote:
- quote -

(judiciously snipped)

- quote -

Since responding aready, an IRS collections lady was in my
office yesterday and we discussed this. She confirmed that
the OIC program ties up a LOT of people who could (her words
now) "better be used to collect overdue taxes." Also that
60% + of all offers are unprocessable. (Yet the largest OIC
outfit continues to charge fees up front.)

- quote -

It's not a "deposit". It's to be an up front payment on
what is owed. Therefore, it's a win-win-win situation for
IRS.

ChEAr$,
Harlan Lunsford, EA n LA

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D.F. Manno wrote:

- quote -

Could you elaborate on that maybe? Makes even 1040 taxes
filed three plus years previously non dischargeable?

ChEAr$,
Harlan Lunsford, EA n LA

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"D.F. Manno" <dfm2a3l0t2[at]spymac.com> wrote:

- quote -

I haven't looked at the new Act, but under previous law most
taxes weren't dischargeable.

Phil Marti
Clarksburg, MD

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"Harlan Lunsford" <lunstax[at]belllsouth.net> wrote:

- quote -

Don't believe everything you hear.

Commissioner, later Undersecretary, Fred Goldberg, borrowing
from Will Rogers, never met a delinquent taxpayer he didn't
like. He was the mover and shaker behind the Schedule H
abomination, "reasoning" that people didn't file 942's
because it was too hard. Nevermind that the workers
wouldn't work on the books and the IRS had no way of
catching most of the noncompliant employers if they weren't
nominated for a Cabinet position.

The OIC program got greatly liberalized in the early 1990's
with lower approval levels and a definite message to accept
them. I felt great pity for the woman who was charged with
getting the message out while pretending that IRS wasn't
changing attitude.

Even before that, a lot depended on local officals. When I
worked on the initial review in Chicago in the 1970's we
were flat out told to find a way to reject them without
investigation. In Florida in the 1980's there was a robust
offer program. In the 1990's, Chicago was a shining light
on accepting offers. Go figure.

- quote -

I've never cared for amnesties, but not because of
resources. I put too many people through too many painful,
but necessary, choices in order to clear up their
delinquencies to have Congress waltz in, probably in an
election year, and give everyone else a nice big pass.

--
Phil Marti
Clarksburg, MD

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"eTaxes.com" <eTaxes[at]gmail.com> wrote:

- quote -

making a program even more inaccessible to people who cannot
afford to pay a down payment but need the program may breed
noncompliance, if not at least support it

how about repatriating all offshore companies back to being
u.s. corporations taxed as such, that should raise more than
$668 million over 10 years?

or doing away with accelerated 5 year depreciation for gas
guzzler vehicles?

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"eTaxes.com" <eTaxes[at]gmail.com> wrote:

- quote -

<snip
- quote -

Fits right in with the bankruptcy bill, which makes taxes
non-dischargeable.

--
D.F. Manno
dfm2a3l0t2[at]spymac.com
"The work goes on, the cause endures, the hope still lives and the dream
will never die."

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"eTaxes.com" <eTaxes[at]gmail.com> wrote:

- quote -

Actually, it might serve to weed out the long line of offers
that slow down the system. However, agreed, in practice
this is likely a disaster for most of these taxpayers.

Without having read the actual provision, my
first-impression concern is this: What happens to the
deposit if the offer is not accepted???

Bryan
------------------------ Bryan Kellar, EA
Oregon Tax Help, Inc. -- Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org

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eTaxes.com wrote:

- quote -

Concur wholeheartedly. The IRS has never liked the OIC
program, if for no other reason, it ties up manpower and
lessens the amount collected, thus reflecting on unit goals.
Or so I'm told.

We know that IRS has also never cottoned to the idea of any
form of tax amnesty either, and for the same reasons.

Welcome back, Steve.

ChEAr$,
Harlan Lunsford, EA n LA

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Late this afternoon, we received this very interesting email from NAEA:

Senate Passes Highway Reauthorization Bill
The Senate, by a vote of 89-11, passed on Wednesday HR 3,
the Safe, Accountable, Flexible, Efficient Transportation
Equity Act of 2005 (SAFETEA), which authorizes
appropriations for FY04-FY09 for highway programs out of the
Highway Trust Fund. The Senate's $295 billion bill includes
a raft of tax provisions, including:

* Offers-in-compromise: In a provision that would raise some
$668 million over ten years, taxpayers would be required to
make a 20% down payment with any lump- sum offer or to
adhere to his/her proposed periodic payment offer while IRS
considers the OIC. This provision repeals the $150
application fee.

There was one provision with which my firm definitely
agrees, but it must apply to practitioners as well:

* Frivolous submissions: The penalty for frivolous tax
submissions would increase from $50 to $5,000. The penalty
would be expanded to apply to all taxpayers for all types of
federal taxes, including CDP, IA, OIC, and Taxpayer
Assistance Orders.

It is my belief that the down payment provision is a
intentional OIC killer. I have no idea where this idea
originated, but it sounds like something Commissioner
Everson would love.

Steve Kassel, EA
eTaxes.com
San Bruno, CA

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