October Update: Success Stories in ETA OIC & IRS’s New Compliance Focus

Here are the latest tips and news for tax resolution specialists; we hope you find it valuable and enjoyable.

A Real-World Success Story: Effective Tax Administration (ETA) Offer in Compromise:?

Previously, we discussed Effective Tax Administration (ETA) Offers in Compromise (OIC) and promised to share real-world examples. Here's one from my experience at the IRS that shows how an ETA OIC can work when properly presented.

Sara, a 68-year-old retiree, owed $150,000 in back taxes after a series of unfortunate events. She had $200,000 in home equity, a modest pension, and Social Security benefits that just covered her basic expenses. While selling her home could have cleared her debt, it would have left her without affordable housing.

Sara applied for an ETA OIC, detailing her medical needs and limited future income. After review, the IRS accepted her offer of $50,000 from her savings, allowing her to keep her home.

This outcome enabled the IRS to recover part of the debt while preventing hardship on a vulnerable taxpayer. Sara's case highlights the value of ETA OICs in finding fair, workable solutions in difficult tax situations.

Did You Know? IRS Launches ‘Pass Through Compliance Unit’?

For those who doubt the IRS is increasing its enforcement efforts, they have recently announced the launch of a dedicated unit to ‘more efficiently conduct audits of pass-through entities’.

This new unit focuses explicitly on ensuring compliance for all types and sizes of pass-through entities, including partnerships, S-corporations, and trusts.?

It is important to stay aware of this development, as it is likely to have a significant impact moving forward.

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