FOLLOW UP from 6/11/11 Meeting with IRS

Here is an updated from Katie Williams, Sr Stakeholder Liason from the Internal Revenue Service on a question regarding if an OIC is accepted, is it considered cancelled debt and taxable?

When an OIC is accepted, it is not considered a cancelled debt

There is a District Counsel Memo dated in 1998 that addresses the issue (it is not the intent  of OIC to settle on the tax and then to have to include the amount in income the tax count case referenced is Eagle Asbestos & Packing Co vs United States, 348 F.2d 528 (Ct. Cl 1965) .

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IRS Asks Court to Release Property Tax Records to Catch Gift Tax Non-filers.

The Internal Revenue Service wants the California Board of Equalization to turn over its computer database in an attempt to find taxpayers who have not paid gift tax on transfers of property to relatives between 2005 and 2010. The Board of Equalization (BOE) maintains information about transfers under California Proposition 58 and Proposition 193, which exclude from reassessment property transfers between parents and children and grandparents and grandchildren. IRS believes that a significant portion of the California taxpayers who have transferred property to their children or grandchildren (as reported to the BOE on forms for exclusion of reassessment) for little or no consideration have failed to report these transfers to the IRS as Taxable Gifts.”

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