My client owes back taxes for both Individual (form 1040's) and their Corporation (form 1065's) for the years 2003 through 2010. This Corporation (which we'll call "Old Corp") has since been dissolved. As of 2011, my client became 50% interest owner (and CFO) of another Corporation (which we'll call "New Corp"). I have finally filed all of their Individual and Business returns for years 2003 through 2010 and now am submitting the "Form 656 Offer in Compromise" application to the IRS which will kick start the collection process and help determine a the amount my client can actually pay for these back taxes owed. This application says, that in addition to filing the Form 433-A which used by the IRS to determine a taxpayers ability to pay (as an individual - wages, income, etc.), that we also need to file a Form 433-B which is used by the IRS to determine if a taxpayer currently has income/cash/assets thorugh a business that could be used to help pay off back taxes owed.
My question is this: The "New Corp" has little assets since it is a computer networking servicing company and of those it does have, they are owned mutually and equally by both owners, Do I need to fill out this Form 433-B? The other owner has nothing to do with my client's previous tax issue and rightousely so, is not interested in liquidating "New Corp"s assets (which are 1/2 owned by him) to satisfy by my clients previous tax debts on the "Old Corp". Is the Form 433-B even applicable (needed) in this sitation or is just the Form 433-A going to suffice for the IRS?
Thanks in advance for your responses!
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