LYCOS RETRIEVER 
Irs Offer in Compromise: Payments
built 252 days ago
The IRS asks that proof of car payment, lease, fuel, oil, insurance, parking and registration fees to be submitted with the Offer. These are requested for the non-business use of the car, assuming that business use will be netted out in the net income statement. As in the case of household and utilities, there is a cap on the amount of transportation expense. The cap has two components, namely the monthly ownership cost (lease or monthly loan payment) and operating costs. Operating costs are based on average transportation cost determined by metropolitan statistical area while ownership costs are determined nationwide. The cap on car payments for the first car for the San Francisco Bay Area is $471, while the cap on the second car is $332 per month.
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In a nutshell, the proposal modifies OIC submissions to include a non-refundable 20 percent down payment and monthly installments (... non-refundable) during the time the offer is under consideration by IRS. NSA believes that it would effectively kill the OIC program by eliminating any incentive for "lenders of last resort, such as family members."
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Superficially, it may seem that the IRS is offering two new ways to pay Offers, the “Cash Offer” and the “Deferred Payment Offer.” In reality, there is only one new way to pay. As explained later, there are different ways to compute the amount due.
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