Brand — Case Diagnostics

Step 4

10. Regarding any of the taxes owed, do you believe some or all of the taxes may have been assessed by the IRS in error? In other words, is there a legitimate doubt as to the liability?

Note

Yes No

Is this doubt as to liability the result of either an assessment the IRS made because of an audit or because the IRS created a return for you because you did not file a return?

Note

Yes No

Explain:

Number of characters left: 250

Diagnostic result:

Since a doubt as to liability is the result of either an assessment the IRS made because of an audit or because the IRS created a return for you because you did not file a return, an Audit Reconsideration or Offer in Compromise based on Doubt as to Liability may be appropriate resolutions.

Audit Reconsideration

Engagement LetterIRC 7216 DisclosureForm 2848Letter (see requirements outlined in Publication 3598)

Prepare and include original tax return(s) conspicuously labeled “OIC-Substitute For Return Reconsideration” (ONLY in the case where the IRS prepared substitute return(s) for the client).

Offer in Compromise based on Doubt as to Liability

Engagement LetterIRC 7216 DisclosureForm 2848Form 656-L

11. If you agree that some or all of the unpaid liability is correct and you have the ability to partially pay it, do you feel there are exceptional circumstances that the IRS should consider to compromise this liability for less than you can actually pay? Examples of exceptional circumstances would be health, disability, age, inability to meet basic living expenses, inability to borrow, collection would cause severe economic hardship, etc.)

Note

Yes No

Explain:

Number of characters left: 250

Diagnostic result:

Since the client believes that they can partially pay the IRS liability but there are exceptional circumstances that the IRS should consider for allowing them to pay less than their entire ability to pay (reasonable collection potential), an Offer in Compromise based on Doubt as to Collectibility with Special Circumstances may be an appropriate resolution.

Offer in Compromise Based on Doubt as to Collectibility with Special Circumstances

Engagement LetterIRC 7216 DisclosureForm 2848Form 433-A (OIC)Form 433-B (OIC) (if a business other than a sole proprietorship is involved )Form 656

12. If you agree that some or all of the unpaid liability is correct and you have the ability to full pay it, do you feel there are exceptional circumstances that the IRS should consider to compromise this liability? Examples of exceptional circumstances would be health, disability, age, inability to meet basic living expenses, inability to borrow, collection would cause severe economic hardship, etc.)

Note

Yes No

Explain:

Number of characters left: 250

Diagnostic result:

Since the client believes they can full pay the IRS liability but there are exceptional circumstances that the IRS should consider for allowing them to pay less than the total liability, an Offer in Compromise based on Effective Tax Administration may be an appropriate resolution.

Offer in Compromise Based on Effective Tax Administration

Engagement LetterIRC 7216 DisclosureForm 2848Form 433-A (OIC)Form 433-B (OIC) (if a business other than a sole proprietorship is involved )Form 656

A preliminary assessment of your Reasonable Collection Potential (RCP) needs to be made to determine the most appropriate collection resolution.

Go to Resolution Evaluation