Offer in Compromise

[JohnH]

I'm off to a great start here.

Helping someone prepare an OIC on a pro bono basis and I don't know what to enter in the name fields.

Husband died earlier this year, but the amounts due relate to joint tax returns for several years past while he was dying of cancer. Since he is no longer living, do I simply enter the wife's name on the 433-A & 656 and then explain on the attachment, or do I enter both names since all the paperwork related to the liability is in both names?

[kcjenkins]

John, I would do it in both names, but put the surviving spouse name as the primary name, and the deceased one as the 'spouse'. That way you have all the bases covered, but the person who is actually going to be the one paying and negotiating will be the remaining individual. I don't know that this is the 'preferred' way, as I have never had that come up. But it makes sense to me, because you want to end the obligation for both of them, so that the surviving spouse can move on with her life without any lingering issues from her deceased spouse.

Once you get to the point of actually discussing the offer with an OIC officer, that will be the time to discuss the fact that one of the two joint taxpayers is already outside of their reach. Don't bother attaching a statement to explain it at the start.

[jainen]

>>the fact that one of the two joint taxpayers is already outside of their reach<<

That may be one of the issues within the Offer in Compromise, but you can't simply assume it to be true. Representing the decedent's estate can be a tricky thing and I wouldn't start the engagement by concealing your relationship from the IRS. kcjenkins, you say not to explain the death "at the start" so how are they even supposed to sign the offer? Isn't the death (with loss of income) one of the most important elements of the offer?

[OldJack]

I agree with Jainen. I would use the old (deceased) with the name.

[JohnH]

kc, jainen, OldJack:

Thanks very much for your thoughts on this issue.

This helps give me some direction.

[kcjenkins]

>>the fact that one of the two joint taxpayers is already outside of their reach<<

That may be one of the issues within the Offer in Compromise, but you can't simply assume it to be true. Representing the decedent's estate can be a tricky thing and I wouldn't start the engagement by concealing your relationship from the IRS. kcjenkins, you say not to explain the death "at the start" so how are they even supposed to sign the offer? Isn't the death (with loss of income) one of the most important elements of the offer?

Where did you get the idea I was saying to conceal the death? I merely said not to bother with a detailed explanation until you get a chance to talk to the OIC officer. I would certainly put 'deceased' in the signature box, Jainen. And I did not say his assets were outside their reach, just that HE is. I think you are reading too much into what I posted, then jumping to conclusions about what you think I meant.