#assetscalculation

The IRS will not consider an OIC if the taxpayer shows the ability to full-pay the liability within the time remaining on the statute. It is therefore critical that you look at how much time remains on the collection statute and calculate if the taxpayer could full pay the liability. 

To do this you need to look at the net equity calculated from assets and assume the taxpayer made their future income payments until the end of the statute. If the taxpayer’s equity in assets and future income will cover the liability within the time remaining, then the taxpayer is not considered eligible to file an OIC. The taxpayer would be required to get into an installment agreement. 

Christopher G. Carmona CPA,CFE

http://carmonataxcpa.com/

https://twitter.com/CarmonaChristo

https://business.google.com/u/1/posts/l/12878835146959315208