Reasonable Collection Potential —
The total realizable value of your assets plus any future income is the reasonable collection potential. The total tends to be your minimum offer amount.
The Reasonable Collection Potential Equation is as follows:
1)Total Income –
Total Expenses = MDI (Monthly Disposable Income)
2)MDI x FIP Factor (Future Income Potential) = Future Income
3)Future Income + Equity in Assets = RCP
Refund –
When more tax is withheld from an employee’s wages than what is owed on their tax return; this difference results in an overpayment of taxes or a refund.
Refund Statute Expiration Date —
You may request a refund of an overpayment within three years from the time the return was filed or within two years from the time the tax was paid, whichever is later. If you filed no return, the claim must be filed within two years from the time the tax was paid.
Request for a Collection Due Process Hearing —
When you film CDP form 12153, you make an appeal t the IRS in regards to a filed lien or the issue of a levy in order to obtain an alternative collection method. Such a request cannot be filed until the IRS has met their legal and administrative requirements in terms of notices.
