Understanding IRS Allowable Expenses for Offer in Compromise & Installment Agreements
Time Stamps:
00:00-00:19 Intro
00:20-01:36 The IRS looks at your cash flow to determine the possibility of a loan payment
01:37-01:53 Recording your monthly income
01:54-2:10 Main topics discussed in this video
2:11-02:22 Non-allowable expenses
02:23-02:43 Allowable expenses
02:44-03:30 The importance of capturing all allowable expenses
03:31-03:47 Reviewing non-allowable vs. allowable expenses
03:48-04:01 Capturing net income as a Schedule C earner
04:02-04:24 Outro
In this video, Christian Onyemem, a licensed CPA and Certified Fraud Examiner, breaks down the essential IRS allowable expenses when you're applying for an Offer in Compromise or an installment agreement.
Understanding these expenses is crucial when negotiating with the IRS to resolve your tax debt.
Key Points Covered:
🔸 Introduction to allowable expenses for IRS Offer in Compromise and installment agreements.
🔸 The IRS focuses on your monthly cash flow, not accounting rules, to determine your ability to pay.
🔸 Importance of proving lower cash flow for a favorable outcome.
🔸 What expenses are allowed, including food, clothing, housing, utilities, vehicle loans, medical costs, and childcare.
🔸 The significance of accurately capturing all necessary expenses on Form 433-A.
🔸 Exclusions: Why sports, entertainment, travel costs, and other non-essential expenses won't count.
🔸 Special considerations for Schedule C earners.
🔸 How low cash flow can improve your chances of reducing your IRS debt with the help of a CPA or tax resolution expert.
Don't forget to leave your questions in the comments below, and I'll address them in future videos! Make sure to like, subscribe, and hit the notification bell for more tips on managing your taxes and resolving IRS issues.
If you need help with tax debt or are in need of tax relief, a member of our team is ready to speak with you!
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