As a former IRS agent teaching instructor many people have asked me over the years what kind of searches does the IRS conduct when looking for assets in working the offer in compromise.
Below, is a pretty comprehensive list of what the IRS agent will conduct when working an offer in compromise.
The higher the dollar, the more comprehensive the due diligence.
Should you have any questions regarding the offer in compromise please let me know. I have worked thousands of cases. I am a nationwide expert on the offer in compromise.
IRS may check on the following:
IRS will check all the documents submitted by the taxpayer and look for flags, they may look at things like:
1. all life insurance policies,
2. motor vehicle records and applications,
3. financial statements turned into lenders,
4. IRS can check credit card applications,
5. equity and all assets,
6. any stocks or securities are closely held corporations and LLCs,
7. life insurance, pension or profit-sharing,
8. furniture fixtures and personal effects,
9. motor vehicles, airplanes, boats, real estate interest,
10. transfers of properties,
11. accounts and notes receivable,
12. income producing assets,
13. inventory, machinery, equipment, tools of trade,
14. valuations of businesses,
15. future income potential,
16. collateral agreement,
17. find out whether or not people are living together and have shared expenses,
18 .limited liability issues,
19. Run Full Google Searches,
20. Get a copy of your credit reports,
21. Check the Accuriant Search Engines,
22. Pull licenses searches,
23. May also use Lexis Nexis for asset searches,
24. Check if you are a beneficiary,
25. and check if you ever transfer any property, assets, or anything beyond the reach of the federal government.
26. IRS checks for pending law suits.
The IRS agent can check on the aforementioned and any other thing that they feel does not make sense or there is a flag raised on the statement.