I am preparing an OIC or PPIA and the client has not filed their 2018 tax return (they are on extension until October). They owe about 68,000 for 15,16,& 17.
Should I try to obtain an OIC before they file the 18 return and then they can be refunded the amount due to them? This doesn’t seem right but I thought I’d ask anyway.
Should I try to obtain a PPIA before they file the 18 return and then they can use the refunded money to pay it off over time? This doesn’t seem fair either.
Or should I have them file the 2018 return first, thereby applying the refund to the balance due and then negotiate an OIC or PPIA on the lower balance?
Thank you,