AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Question If a currently out of work, single (divorced) taxpayer that is seeking employment, but hasn't found any for the past few months is preparing an OIC are they required to project potential income on the financial statement, or list no income? If no income, what problems will that present for the IRS accepting the OIC, even if there is currently no income? Note: TP is receiving a small benefit from the former spouse, but it is well below living expenses/
Answer If you are currently not employed, the IRS will look at the last three years of income, typically giving a little more weight to the most recent year you were fully employed. They will factor in such things as age, health and a change in the market for your skills.
Typically these OIC's are more difficult to do and that is compounded if your income has fluctuated significantly over the last three years.
