.jpg)
Offer in Compromise: Remember In re L.L. Mead, Jr., BC-DC N.C., 2013-1
You probably remember this very important case from 6 months ago, but it was supposedly a first impression case that stands for the proposition that the IRS proof of claim is limited to the amount it previously agreed to in an offer in compromise.
So, if you really did get pennies on the dollar it may impact your wholistic decision to file with timing that does not enable discharge of the taxes, if the OIC was de minimis.
Here is the cite:
In Re Mead (US Bk E.D. North Carolina) IRS may not renege on its offer in compromise position due to a bankruptcy filing. The Proof of Claim for Original Tax Liability Instead of the Compromise Amount Violated Anti-Discrimination Provisions (In re Mead, Jr., BC-DC
N.C.), (Jan. 11, 2013). In a case of first impression, a debtor couple's objection to the IRS's proof claim for their original tax liability instead of the prepetition compromise amount was sustained.
The IRS accepted the couple's offer-in-compromise prior to their bankruptcy filing and the couple was not in default of the agreement. The court rejected the IRS's argument that the terms of the compromise
allowed it to file a "tax claim" for the entire original liability. Allowing the IRS to disregard a prepetition compromise solely because
the taxpayers filed for bankruptcy would violate the antidiscrimination provisions under section 525(a) of the Bankruptcy Code and thus IRS's tax claim was limited to the amount owed under the compromise, not the original pre-compromise amount.
The post was migrated from Yahoo.