united-states tax-law federal-tax-law
Are corporation assets included on IRS offer in compromise (form 433-A)?
<p>In the IRS offer in compromise process, the individual fills out the 433-A form that lists their personal assets.  What if the individual is the sole shareholder of a standalone, incorporated business? Will the assets of that incorporated business have to be listed on the 433-A financial disclosure form?</p>
<p>Scenario 1.  The individual is self employed, bills his clients thru an &quot;LLC type corporation&quot;. The individual's tax return is filed as 1040, self employed. With the net income of the LLC listed as income on the 1040.</p>
<p>Scenario 2. The individual is the sole shareholder of a &quot;subchapter C corporation&quot; that has 2 employees, the individual and one other. The corporation derives its income from work the two employees do for clients. The corp files its own tax return. And pays a salary to the individual and the other employee.</p>
<p>In both scenarios there is cash in the checking account of the corporation.  Is that cash required to be listed on the 433-A financial disclosure form?</p>

<h2>Yes, but differently</h2>
<p>Scenario 1: the individual owns directly all the assets of an LLC so each and every asset must be listed.</p>
<p>Scenario 2: the corporation owns its own assets but is itself an asset of the individual. The corporation must be listed along with its value - either as a going concern or in liquidation depending on its situation.</p>
