Uncollectible with No Request for It

[Michelle Divan]

I have a strange case:
2013: SFR – Balance Due >$20K (will be less when we file actuals), Status CNC
2014: Filed 5 years late, Balance Due <$10K, Status CNC
2015: Filed 4 years late, Balance Due <$10K, Status CNC
2016: Filed 3 years late, Balance Due >$20K, Status In Collections
2017: Filed 2 years late, Balance Due <$10K, Status CNC
2018: Filed 1 year late, Business Loss, Status N/A
2018: Filed Timely!, Balance ~$1,200, Status in Collections

You might have guessed, client came to me for filing. She is finally ready to address this issue! Can someone offer some insight on why only 2016 and 2019 would be in collections?

I plan to file for an OIC (no assets, but makes good income) – not sure if she has a chance at that, but total balance due is ~$65K. I don’t feel confident she would be able to stay compliant with an IA.
I am new to representation, and not sure on the first steps to take.

[Thomas Bridgman]

I’ll leave the bigger question for others, but a comment on her compliance: note that if her OIC is accepted, she has to stay compliant for 5 years.

[Marvin Mann]

I will take a guess, but would not rely on it.

I don’t think IRS hands out a new CNC every year without being asked by tax payer for CNC

So maybe client just asked for CNC status for each of those years, and IRS never came back to review her financial status. Check with client, and see if she did it or someone else.

If you are considering OIC, I think first that comes to mind, determine RCP.

[Author]

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