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Effect of bankruptcy on pending Offer in Compromise
The IRM is available online. Here is the relevant section:
http://www.irs.gov/irm/part5/irm_05-009 ... ml#d0e2816
John D. Faucher
Faucher & Associates
*818/889-8080*
On Wed, Aug 14, 2013 at 11:48 PM, Link Schrader
wrote:
> **
>
>
> This is a cliffhanger... so what does IRM 5.9.4.10.1 say?
> On Aug 14, 2013 3:11 PM, "mjmannbk" wrote:
>
>> **
>>
>>
>> Blurb from IRS collection Manuel Chp 8 section 10,
>>
>> 5.8.10.2.4 (09-27-2011)
>> Bankruptcy After Offer In Compromise Acceptance
>>
>> When a taxpayer files bankruptcy after an OIC is accepted, the Service
>> may need to take specific actions to secure unpaid offer funds or to secure
>> payment of tax through the bankruptcy proceeding. (See IRM 5.9, Bankruptcy
>> and Other Insolvencies, for additional information.)
>>
>> In accordance with the Bankruptcy Code, the offer should not be defaulted
>> or payments solicited while the taxpayer is in bankruptcy.
>>
>> When the Service becomes aware that a bankruptcy has been filed after the
>> acceptance of an OIC:
>>
>> If
>> The offer funds have been paid in full
>> Then
>> The bankruptcy filing has no effect on the accepted offer.
>> If...
>> The offer funds have not been paid in full
>> Then
>> Refer to IRM 5.9.4.10.1 Accepted but Not Completed Administrative OICs.
>> If additional guidance is required, contact the Insolvency Unit to
>> determine necessary action to protect the Service's interest in the
>> bankruptcy proceeding.
>>
>> Marvin Mann
>> 2706 Artesia Blvd
>> Redondo Beach, CA 90278
>>
>> --- In cdcbaa@yahoogroups.com, Jim Selth wrote:
>> >
>> > Colleagues:
>> >
>> > A potential client is part way through payments on an accepted Offer in
>> Compromise with the IRS and may need to file a Chapter 7 bankruptcy before
>> the payments can be completed. It is a very favorable compromise which will
>> result in the release of a sizeable tax lien on his house. Will the filing
>> of a Chapter 7 case terminate or otherwise adversely affect the accepted
>> Offer in Compromise even if he wants to honor it and make the final
>> payments?
>> >
>> > Jim
>> >
>> > James R. Selth
>> > Certified Bankruptcy Specialist*
>> > Weintraub & Selth, APC
>> > 11766 Wilshire Boulevard, Suite 1170
>> > Los Angeles, California 90025
>> > Telephone: (310) 207-1494
>> > Facsimile: (310) 442-0660
>> > E-Mail: jim@...
>> >
>> > *Certified by State Bar of California as Certified Legal Specialist in
>> Bankruptcy Law
>> >
>> > NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED
>> RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE
>> PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE,
>> DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY
>> PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND
>> PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR
>> COOPERATION
>> >
>>
>>
> *Link Schrader, Attorney*
> Law Office of Link W. Schrader
> Mail: P.O. Box 3723, Tustin, CA 92781
> Office: 106 W. 4th Street, Suite #308, Santa Ana,
> CA 92701
> Office: (714) 542-5922; Mobile/Text: (310) 413-6924
> San Diego: (619) 952-8342; Fax: (310) 878-4158
> www.schrader-law.com
> ______________________________**______________________________**
> ______________________________**____________
> This communication and any files transmitted with it contain information
> which is confidential and may be privileged and exempt from disclosure
> under applicable law. It is intended solely for the use of the individual
> or intended recipient. You are hereby notified that any use, dissemination
> or copying of this communication is strictly prohibited. If you have
> received this communication in error, please notify the sender. Thank you
> for your cooperation.
>
>
>
The IRM is available online. Here is the relevant section:
The post was migrated from Yahoo.
This is a cliffhanger... so what does IRM 5.9.4.10.1 say?
On Aug 14, 2013 3:11 PM, "mjmannbk" wrote:
> **
>
>
> Blurb from IRS collection Manuel Chp 8 section 10,
>
> 5.8.10.2.4 (09-27-2011)
> Bankruptcy After Offer In Compromise Acceptance
>
> When a taxpayer files bankruptcy after an OIC is accepted, the Service may
> need to take specific actions to secure unpaid offer funds or to secure
> payment of tax through the bankruptcy proceeding. (See IRM 5.9, Bankruptcy
> and Other Insolvencies, for additional information.)
>
> In accordance with the Bankruptcy Code, the offer should not be defaulted
> or payments solicited while the taxpayer is in bankruptcy.
>
> When the Service becomes aware that a bankruptcy has been filed after the
> acceptance of an OIC:
>
> If
> The offer funds have been paid in full
> Then
> The bankruptcy filing has no effect on the accepted offer.
> If...
> The offer funds have not been paid in full
> Then
> Refer to IRM 5.9.4.10.1 Accepted but Not Completed Administrative OICs. If
> additional guidance is required, contact the Insolvency Unit to determine
> necessary action to protect the Service's interest in the bankruptcy
> proceeding.
>
> Marvin Mann
> 2706 Artesia Blvd
> Redondo Beach, CA 90278
>
> --- In cdcbaa@yahoogroups.com, Jim Selth wrote:
> >
> > Colleagues:
> >
> > A potential client is part way through payments on an accepted Offer in
> Compromise with the IRS and may need to file a Chapter 7 bankruptcy before
> the payments can be completed. It is a very favorable compromise which will
> result in the release of a sizeable tax lien on his house. Will the filing
> of a Chapter 7 case terminate or otherwise adversely affect the accepted
> Offer in Compromise even if he wants to honor it and make the final
> payments?
> >
> > Jim
> >
> > James R. Selth
> > Certified Bankruptcy Specialist*
> > Weintraub & Selth, APC
> > 11766 Wilshire Boulevard, Suite 1170
> > Los Angeles, California 90025
> > Telephone: (310) 207-1494
> > Facsimile: (310) 442-0660
> > E-Mail: jim@...
> >
> > *Certified by State Bar of California as Certified Legal Specialist in
> Bankruptcy Law
> >
> > NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED
> RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE
> PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE,
> DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY
> PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND
> PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR
> COOPERATION
> >
>
>
>
*Link Schrader, Attorney*
Law Office of Link W. Schrader
Mail: P.O. Box 3723, Tustin, CA 92781
Office: 106 W. 4th Street, Suite #308, Santa Ana,
CA 92701
Office: (714) 542-5922; Mobile/Text: (310) 413-6924
San Diego: (619) 952-8342; Fax: (310) 878-4158
www.schrader-law.com
The post was migrated from Yahoo.
It is my understanding that if u have an accepted offer that amount can be used as the amount that needs to be paid. I gleaned that understanding from Morgan Kings books.
Sent from my iPhone
On Aug 14, 2013, at 11:34 AM, Jim Selth wrote:
> Colleagues:
>
>
>
> A potential client is part way through payments on an accepted Offer in Compromise with the IRS and may need to file a Chapter 7 bankruptcy before the payments can be completed. It is a very favorable compromise which will result in the release of a sizeable tax lien on his house. Will the filing of a Chapter 7 case terminate or otherwise adversely affect the accepted Offer in Compromise even if he wants to honor it and make the final payments?
>
>
>
> Jim
>
>
>
> James R. Selth
> Certified Bankruptcy Specialist*
> Weintraub & Selth, APC
> 11766 Wilshire Boulevard, Suite 1170
> Los Angeles, California 90025
> Telephone: (310) 207-1494
> Facsimile: (310) 442-0660
> E-Mail: jim@wsrlaw.net
>
> *Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law
>
> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION
>
>
The post was migrated from Yahoo.
Blurb from IRS collection Manuel Chp 8 section 10,
5.8.10.2.4 (09-27-2011)
Bankruptcy After Offer In Compromise Acceptance
When a taxpayer files bankruptcy after an OIC is accepted, the Service may need to take specific actions to secure unpaid offer funds or to secure payment of tax through the bankruptcy proceeding. (See IRM 5.9, Bankruptcy and Other Insolvencies, for additional information.)
In accordance with the Bankruptcy Code, the offer should not be defaulted or payments solicited while the taxpayer is in bankruptcy.
When the Service becomes aware that a bankruptcy has been filed after the acceptance of an OIC:
If
The offer funds have been paid in full
Then
The bankruptcy filing has no effect on the accepted offer.
If...
The offer funds have not been paid in full
Then
Refer to IRM 5.9.4.10.1 Accepted but Not Completed Administrative OICs. If additional guidance is required, contact the Insolvency Unit to determine necessary action to protect the Service's interest in the bankruptcy proceeding.
Marvin Mann
2706 Artesia Blvd
Redondo Beach, CA 90278
>
> Colleagues:
>
> A potential client is part way through payments on an accepted Offer in Compromise with the IRS and may need to file a Chapter 7 bankruptcy before the payments can be completed. It is a very favorable compromise which will result in the release of a sizeable tax lien on his house. Will the filing of a Chapter 7 case terminate or otherwise adversely affect the accepted Offer in Compromise even if he wants to honor it and make the final payments?
>
> Jim
>
> James R. Selth
> Certified Bankruptcy Specialist*
> Weintraub & Selth, APC
> 11766 Wilshire Boulevard, Suite 1170
> Los Angeles, California 90025
> Telephone: (310) 207-1494
> Facsimile: (310) 442-0660
> E-Mail: jim@...
>
> *Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law
>
> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION
>
The post was migrated from Yahoo.
It is my understanding an offer dies if you file a 7 during the offer
period. I'll ask Morgan King and post his answer, should he reply.
d
On Wed, Aug 14, 2013 at 12:29 PM, Link Schrader
wrote:
> **
>
>
> This sounds like an executor contract problem. Upon filing a Chapter 7
> case, the right to assume or reject an executor contract belongs to the
> trustee. If the contract is executor it must be dealt with under section
> 365. 365(d) provides that if the trustee does not assume or reject an
> executor contract...within 60 days after the order for relief, or within
> such additional time as the court, for cause, within such 60-day period,
> fixes, then such contract or lease is deemed rejected.
>
> I would suggest calling the trustee once he or she is known to let them
> know that the debtor would like to assume this executor contract and then
> preparing the motion for the trustee. If the trustee will not file the
> motion, then file a motion to compel. I'm not sure why the trustee would
> want to assume since it does not benefit the bankruptcy estate, but
> benefits the postpetition debtor's estate.
>
> There is probably more to this, but hope this contributes to the
> discussion. Any comments from chapter 7 trustees"
>
> *Link Schrader, Attorney*
>
> Law Office of Link W. Schrader
>
> Mail: P.O. Box 3723, Tustin, CA 92781
>
> Office: 106 W. 4th Street, Suite #308, Santa Ana, CA 92701
>
> Office: (714) 542-5922; Mobile/Text: (310) 413-6924
> Fax: (310) 878-4158; www.schrader-law.com
>
> ______________________________________________________________________________________________________
>
> *This communication and any files transmitted with it contain information
> which is confidential and may be privileged and exempt from disclosure
> under applicable law. It is intended solely for the use of the individual
> or intended recipient. You are hereby notified that any use, dissemination
> or copying of this communication is strictly prohibited. If you have
> received this communication in error, please notify the sender. Thank you
> for your cooperation.*
>
>
> On Wed, Aug 14, 2013 at 11:34 AM, Jim Selth wrote:
>
>> **
>>
>>
>> Colleagues:****
>>
>> ** **
>>
>> A potential client is part way through payments on an accepted Offer in
>> Compromise with the IRS and may need to file a Chapter 7 bankruptcy before
>> the payments can be completed. It is a very favorable compromise which
>> will result in the release of a sizeable tax lien on his house. Will the
>> filing of a Chapter 7 case terminate or otherwise adversely affect the
>> accepted Offer in Compromise even if he wants to honor it and make the
>> final payments?****
>>
>> ** **
>>
>> Jim****
>>
>> ** **
>>
>> James R. Selth
>> Certified Bankruptcy Specialist*
>> Weintraub & Selth, APC
>> 11766 Wilshire Boulevard, Suite 1170
>> Los Angeles, California 90025
>> Telephone: (310) 207-1494
>> Facsimile: (310) 442-0660
>> E-Mail: jim@wsrlaw.net
>>
>> *Certified by State Bar of California as Certified Legal Specialist in
>> Bankruptcy Law
>>
>> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED
>> RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE
>> PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE,
>> DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY
>> PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND
>> PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR
>> COOPERATION****
>>
>>
>
> *Link Schrader, Attorney*
> Law Office of Link W. Schrader
> Mail: P.O. Box 3723, Tustin, CA 92781
> Office: 106 W. 4th Street, Suite #308, Santa Ana,
> CA 92701
> Office: (714) 542-5922; Mobile/Text: (310) 413-6924
> San Diego: (619) 952-8342; Fax: (310) 878-4158
> www.schrader-law.com
> ______________________________**______________________________**
> ______________________________**____________
> This communication and any files transmitted with it contain information
> which is confidential and may be privileged and exempt from disclosure
> under applicable law. It is intended solely for the use of the individual
> or intended recipient. You are hereby notified that any use, dissemination
> or copying of this communication is strictly prohibited. If you have
> received this communication in error, please notify the sender. Thank you
> for your cooperation.
>
>
>
It is my understanding an offer dies if you file a 7 during the offer period. I'll ask Morgan King and post his answer, should he reply.d
On Wed, Aug 14, 2013 at 12:29 PM, Link Schrader <
This sounds like an executor contract problem. Upon filing a Chapter 7 case, the right to assume or reject an executor contract belongs to the trustee. If the contract is executor it must be dealt with under section 365. 365(d) provides that if the trustee does not assume or reject an executor contract...within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected.
I would suggest calling the trustee once he or she is known to let them know that the debtor would like to assume this executor contract and then preparing the motion for the trustee. If the trustee will not file the motion, then file a motion to compel. I'm not sure why the trustee would want to assume since it does not benefit the bankruptcy estate, but benefits the postpetition debtor's estate.
There is probably more to this, but hope this contributes to the discussion. Any comments from chapter 7 trustees"
The post was migrated from Yahoo.
This sounds like an executor contract problem. Upon filing a Chapter 7
case, the right to assume or reject an executor contract belongs to the
trustee. If the contract is executor it must be dealt with under section
365. 365(d) provides that if the trustee does not assume or reject an
executor contract...within 60 days after the order for relief, or within
such additional time as the court, for cause, within such 60-day period,
fixes, then such contract or lease is deemed rejected.
I would suggest calling the trustee once he or she is known to let them
know that the debtor would like to assume this executor contract and then
preparing the motion for the trustee. If the trustee will not file the
motion, then file a motion to compel. I'm not sure why the trustee would
want to assume since it does not benefit the bankruptcy estate, but
benefits the postpetition debtor's estate.
There is probably more to this, but hope this contributes to the
discussion. Any comments from chapter 7 trustees"
*Link Schrader, Attorney*
Law Office of Link W. Schrader
Mail: P.O. Box 3723, Tustin, CA 92781
Office: 106 W. 4th Street, Suite #308, Santa Ana, CA 92701
Office: (714) 542-5922; Mobile/Text: (310) 413-6924
Fax: (310) 878-4158; www.schrader-law.com
The post was migrated from Yahoo.
Colleagues:
A potential client is part way through payments on an accepted Offer in Compromise with the IRS and may need to file a Chapter 7 bankruptcy before the payments can be completed. It is a very favorable compromise which will result in the release of a sizeable tax lien on his house. Will the filing of a Chapter 7 case terminate or otherwise adversely affect the accepted Offer in Compromise even if he wants to honor it and make the final payments?
Jim
James R. Selth
Certified Bankruptcy Specialist*
Weintraub & Selth, APC
11766 Wilshire Boulevard, Suite 1170
Los Angeles, California 90025
Telephone: (310) 207-1494
Facsimile: (310) 442-0660
E-Mail: jim@wsrlaw.net
*Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law
NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION
The post was migrated from Yahoo.