Course Description

There are over 24 million taxpayers (individual and business) who owe the IRS back taxes. In 2024, only 7,199 taxpayers received an IRS settlement – that is, an IRS offer in compromise. An OIC allows taxpayers to settle their tax bill for less than the amount owed. Why do so few get an OIC?

In this course, find out how the IRS’ offer in compromise program works and understand if your financially distressed client qualifies for an OIC, and if it is the best collection alternative for their circumstances. If they qualify, find out how much it will cost to settle their tax bill. We will cover the OIC rules and walk through a real-life individual and business example of how the OIC works from qualification, to application, through the OIC investigation, and to the final end. We will also get insights as to why many taxpayers do not qualify – and other IRS options that may be more suited to their circumstances.

Learning Objectives

• Explain IRS collection trends, including utilization of the IRS offer in compromise program
• Explain the IRS offer in compromise program and how it works
• Identify whether a client qualifies for an offer in compromise
• Explain how to calculate the amount they need to settle their tax bill
• Identify the potential issues that will disqualify a client from an OIC
• Identify other IRS collection alternatives that may better fit your client's circumstances
• Identify approximately how many taxpayers owe the IRS back taxes based on a 2024 estimate
• Identify the percentage of IRS Collection agreements that are ETP/SLIAs
• Identify the standard QSV on vehicles, boats, and planes
• Identify how many days a taxpayer has to request an appeal of an OIC

Topics Covered

• IRS Collection and Tax Debt Update
• IRS Collection rules and alternatives to full payment
• Determining ability to pay
• How the IRS Offer in Compromise works
• OIC Process and Case Example
• Business OICs
• Practical consideration and tips

Credits and Other Informations

• IRS CPE Credits: 2.0 TAX

• Location: Virtual/Online

• Delivery method: Group Internet Based

• IRS Course ID: DFFSC

• Attendance Requirement: Yes

• Session Duration: 2 Hours

• Case Studies and Live Q&A session with speaker

• PowerPoint presentation for reference

Who Will Benefit

      •⁠  CPA

      •⁠  Enrolled Agents (EAs)

      •⁠ Tax Professionals

      •⁠  Attorneys

      •⁠ Other Tax Preparers

      •⁠ Finance professionals

      •⁠ Financial planners

Speaker

Jim Buttonow, CPA, CITP, has been a leader in helping taxpayers and tax professionals resolve tax problems with the IRS.

For 19 years, Jim worked at the IRS in various compliance enforcement positions. Since 2006, Jim has been in private practice and tax and accounting software development. Jim consulting practice focuses on the areas of tax controversy and tax administration. Jim led product development and marketing for a successful software company that developed tax problem software for tax professionals. This software is currently being used by thousands of tax professionals and businesses in the United States.

Jim has been an IRS partner in improving IRS operations and post-filing service to taxpayers. Jim served as chairperson of the IRS Electronic Tax Administration Advisory Committee (ETAAC) in 2015 and 2016 during which ETAAC played a central role in promoting the IRS digital strategy to develop transformative technology solutions to systemic challenges in tax administration. Jim also served as the North Carolina representative on the IRS’ Taxpayer Advocacy Panel (TAP) from 2020-2022.

Jim regularly speaks on areas of tax administration and problem solving to national associations and has testified before Congress in areas of tax administration. He has also published many articles in industry publications. In his articles, Jim focuses on delivering practical insights, advocating for IRS transparency and efficiency, and proposing innovative large-scale solutions for taxpayers and tax professionals.

Jim currently authors CCH’s Tax Problems and Solutions Handbook, a publication aimed at helping tax pros work more effectively in post-filing matters and resolving their clients’ most common tax problems