Effect of bankruptcy on pending Offer in Compromise
Posted: Thu Aug 15, 2013 5:48 pm
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.