Best Estate Planning Attorneys in Portland, OR

IRS continues to revamp Offers In Compromise - Part 1 of 3 An Offer In Compromise (OIC) is an agreement between a taxpayer and the IRS that settles the Taxpayer’s tax liabilities for less than the total amount owed. You might think this process was set in stone, and the IRS has long since finalized the application process. However, the IRS has significantly changed the forms used to apply for an OIC. Here’s a summary of the most recent changes in 2022: • Married Taxpayers – the IRS wants to know if you lived in AZ, CA, ID, LA, NM, NV, TX, WA, or WI within the last ten years. That list of states may look familiar – it’s the list of states with community property laws. If you lived in one of the listed community property states, you should take care when making an offer when there is a nonliable spouse. • Virtual Currency – The IRS wants your ETH and BTC info. The IRS first added this new request in 2020. • Real property – You must state whether you are trying to sell or plan to sell your real estate to pay the offer. • Personal Property Exemption - Good news. The IRS Increased the amount of Section 6334(a)(2) Personal Property Exemption to $10,090. • Books and Tools of the Trade Exemption - The 2022 increase for the amount of Section 6334(a)(3) Exemption for Businesses for books or tools necessary for the trade business or profession of the Taxpayer rose to $5,050. We only wish this exemption was bigger. See Part 2 for more.