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Offer in Compromise- Allowable expenses

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Yuke

Member
What is the name of your state? Caifornia

I've filed an offer in compromise after I realized I won't be able to maintain installment payments once the forbearance period for my school loans run out. Are my school loans and my spouse's considered necessary expenses?

Also, the IRS officer is rejecting my offer saying I "could" have fully paid the tax debt. She says that when I refinanced my second mortgage I had enough cash to fully pay. However, I didn't cash out the full second mortgage, but rather, had to pay off other debts including credit cards so that the second mortgage lender could agree to the loan. This was done so that I could make the installment payments in the first place. Is it proper for her to reject my offer for this reason?
 


abezon

Senior Member
Get a statement from the lender saying that the second mortgage was conditioned on the proceeds being used to pay the credit card debts first & that you were not allowed to pay the IRS first. Then take the statement to a tax attorney who can help you finish/resubmit your IOC.
 

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