supporting documents for irs/oic.

[dakota99]

What is the name of your state? ca
i submitted an oic two weeks ago and the irs contacted me saying that they want to see my bank statements to see where my money has gone for the last few years. do i have to submit the statements? can they give me a hard time or decline an oic because i wouldn't give them the bank statements?

my concern is this, i have nothing to hide but if the irs looks at my bank statements and sees withdrawls of X amount and checks to Y company for Z amount, can they say that they have doubts about my financial situation and demand a higher payment than the offer in compromise system says normally would be ok, essencially demanding the X and Z amount?

also, i have been told it could take a year and a half or more to get through this process. why can they not just process the matter in a timely manner, a matter of months, and let me get on with my life?
if you can say, how do i ask the irs amount the amount of time the oic will take, a nice way of saying i expect the matter to take no longer than necessary to verify the information submitted?

 

[095489487]

Good luck - we submitted an offer over 2 years ago and we are still waiting for IRS to resolve it. We had offered 9,000 to settle but they were not happy with that wanted more. My husband just lost his job so now they may not get anything. We were never asked for bank statements - just had to supply copies of all our expenses. Be prepared to wait a long time!

 

[abezon]

Yes, they can demand your bank statements. If you don't provide them, your OIC is not complete & the IRS cannot process it. The IRS usually processes a *complete* OIC within 6 months. The delays are usually from the taxpayer not submitting all info or the IRS needing more info to process the OIC.

 

[dakota99]

financial disclosure, irs

well, i have nothing to hide but if the irs looks at my bank statements and sees withdrawls of X amount and checks to Y company for Z amount, can they say that they have doubts about my financial situation and demand a higher payment than the offer in compromise system says normally would be ok?

 

[abezon]

Yes. An OIC is based on your disposable income -- what's left over after buying essentials like food, shelter & utilities, car insurance, etc. If you're withdrawing $1,000 a month at the casino, you can afford to pay $1,000 a month to the IRS.