Down-line accounting issues for companies raising money through Initial Coin Offerings are going to be far more complex than raising money through a regulated ICO.
The Internal Revenue Service ("IRS") recently announced, under release IR-2012-53, that they were making the terms to accept offers in compromise more flexible under the expansion of their "Fresh Start" program. An offer in compromise is an agreement between the IRS and the taxpayer in which settles the taypayer's liabilities owed. The IRS makes the determination as to what the taxpayer is capable of paying through review of the taxpayer's current income and assets. Under the expanded program, the IRS in calculating the taxpayer's collection potential, will now look at only one year of future income for offers with obligations paid in less than five months, down from four years. For offers for repayment in six to 24 months, two years of future income will be reviewed, down from five under the previous program. All accepted offers of compromise must be paid within 24 months.
Other changes announced were: allowing taxpayers to repay student loans, pay stated and local delinquent taxes and expanding the Allowable Living Expense allowance category and amount. These amounts are used in calculating the taxpayers future income. See the release above for specific information.
The modification to the offer in compromise program will allow taxpayers in which are having a difficult time meeting their financial obligations to obtain some relief from the IRS. It is always best practice to contact an attorney or CPA prior to negotiating with the IRS. Please contact dbbmckennon for a free consultation regarding your options and look here for information if you are contacted by the IRS or any other government agency.
dbbmckennon is a full service CPA firm with offices in Orange County and San Diego focused on providing quality professional services at reasonable rates. For additional complimentary information regarding this topic or other questions you may have please call one of dbbmckennon‘s offices located in Southern California or contact us here.