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Thank you so much for the quick response.
To recap, and I hope I am understanding this correctly:
1. File 433-B and request CNC for the business tomorrow at Appeals hearing as collection alternative, and give the penalty abatement a shot (and hope for the best).
My question about Business CNC: I was a bit confused between the whole “in-business” vs “defunct corp” (IRM 188.8.131.52.6 vs. IRM 184.108.40.206.7) (subject to 220.127.116.11.4)
Taxpayer (the LLC) is kind of in this grey area – not in business, but not quite defunct (the assets have not been dispersed – yet) – rather, it is getting ready to wind down. So I assume I can still do it under the “defunct” criteria.
It should work since all IRS liens have been filed, and the TFRP assessment is pretty straightforward. Also, remember, the taxpayer owner already filed bankruptcy protection due to the agressive action of the other creditors. My guess is that they didn’t even bother with the business bc the IRS liens appearing in the public records scared them off.
2. Sell off business assets, designate payments to IRS toward TFRP.
I am assuming we would still have to do a 14135 to sell the assets under those circumstances, correct?
In any case, the proceeds from that sale would clear up all of the TFRP, but what happens then with the rest of the penalties, interest, etc.?
3. What alternatives if they don’t give us the CNC status? (shudder)