The RCP Formula: Things to consider purchasing in Parkchester, NY
By Gail Miller
(Miller Tax & Advisory Services)
The primary focus of my firm is tax representation in Parkchester, NY. In order for the IRS to consider a taxpayer’s Offer-In-Compromise (OIC) request, a Reasonable Collection Potential or RCP must be completed and submitted along with supporting documentation as part of the package. The objective is a reduced tax liability that could be significantly less than an installment agreement but with a shorter time period of maybe 12 months or 24 months depending on the future income of the taxpayer. Without the RCP, then the Offer is likely to be rejected and the process would have to start over. The RCP Formula does allow for options that could increase the taxpayer’s expenses that could either lower the overall tax liability or perhaps put the taxpayer in a Currently Not Collectable status...