Multiple tax years of liability (RCP calculation)

[Liz Castro]

When a client has multiple tax years with tax liability. How will one calculate the statue of limitations for the purposes of RCP to see if they are a good OIC candidate?
For example:
Tax payer owes 100,000
Tax yr 2015, timely filed,
Tax yr 2016, timely filed,
Tax yr 2017, timely filed,
Tax yr 2018, timely filed,

[Michael O’Leary]

Are the balances equally spread among the years?

They will need about $1,200 per month of RCP in order to pay this all off by the last CSED which is April 2029.

You can prorate that by how much debt per year and when the CSED is for each year.

[Eric Green]

I literally put the balances in a spreadsheet, apply the equity in assets starting with the oldest period first, then start applying the future income payments, year by year. The moment you get to a year that will not be full paid they are good to do an OIC.

[Author]

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