PitBullTax Software updated Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, Form 433-B (OIC), Collection Information Statement for Businesses, Form 656, Offer in Compromise, and Form 433-D, Installment Agreement to its latest revision of January 2015.

• If taxpayer or liable spouse has interest in the employer’s business, you need to indicate whether they are partner, officer or sole proprietor;
• IRS allowable deduction for professional books and tools of trade increased from $4,470 to $4,540. This amount has been updated in the PE², PitBullTax Express Evaluation tool as well.

• There are now separate sections for entering the individual and business liabilities to be compromised. Nothing will change in the Data Entry side for you, the software will automatically populate necessary section on the IRS form based on whether you file individual or business offer;
• Low Income Certification guidelines for individual taxpayers actually decreased this year, so make sure to double check if your clients are still eligible for the application fee and 20% down payment waiver.
• Under the Periodic Payment offer you can now clearly state a different amount for the final payment. This is something the software addressed previously, and now the IRS confirms that the periodic payment do not have to be divided equally and a balloon payment can be made as the final settlement amount. Please make sure the total amount of your payments is equal to the offer amount, otherwise you may see a warning message;
• In the Section VII of Form 656 you now have to check the box to certify that your clients have filed all required tax returns and/or provide a list of periods for which they were not required to file.

• IRS allowable deduction for professional books and tools of trade increased from $4,470 to $4,540.

In general, the calculation of the offer amount and payment options remained the same.

• The only informative change is for IRS only section. It says that a Notice of Federal Tax Lien will not be filed on any portion of the liability which represents an individual shared responsibility payment under the ACA.