Reply To: OIC for IRS

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Eric Green

Jarett, the IRS can fight about it but they do have an obligation to pay current state taxes (it is factored into the 433-A current taxes line) so I would take the position this is not dissipated. Also, given that it wont show on a 1040 (like a sale of stock or business asset) it may never become an issue. I would try and avoid filing the offer that would need to include those bank statements, so as long as it did not occur in the last three months and wont be seen flushing through the bank statements there is a good shot it never comes up as an issue. If it does I would argue its not dissipated because current state taxes are an allowable expense.