IRS National and Local Standards Archives - Tax Resolution Specialist Training

If using national standards shows that a taxpayer’s monthly disposable income (“MDI”) is zero, can an offer in compromise be submitted if the offer is made using money gifted from family and friends?

Yes and no. Yes the taxpayer can obtain the funds from family or friends. When we submit an offer, we usually state that the money being used to pay the offer was borrowed from family friends, and not gifted. This information is entered in the section on the form where the IRS asks for the [...]

If using national standards shows that a taxpayer’s monthly disposable income (“MDI”) is zero, can an offer in compromise be submitted if the offer is made using money gifted from family and friends?David Karp2016-05-13T14:43:54-07:00

If your actual housing and utility expense is lower than the IRS standard can you still use the higher IRS standard?

The IRS allows the lower of actual vs IRS standard for housing and utility expense . If you do not have substantiation to justify the maximum, you may be request that the standard be used but our success rate attempting this has been very limited.

If your actual housing and utility expense is lower than the IRS standard can you still use the higher IRS standard?David Karp2016-05-13T14:43:32-07:00

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