Private Use of Rental Property

The guidelines associated with the personal and leasing utilization of premises are included in this article in the Landlord’s Tax Guide. This may be either because you are leasing out a space in the same property which you are living in, or you have got a vacation residence that you might privately employ a few weeks out of the calendar year and rent the remainder of the time. This information will not apply to you at all if you never use your rental property for personal use. However, if you do, you will want to keep reading.

Property rented for less than fifteen days. Any time you leased your property for less than fifteen days total in the past year, you don’t have to file any of your rental revenue. If this is the scenario, then the real estate property is going to be considered personal for taxation considerations, and on Schedule A of Form 1040, it is possible to deduct any of the property associated expenditures as personal.

Employing Your Holiday Home as a Part Time Rental

Personal use test. It’s important to work with some type of numeric formula to determine the total number of days during which the rental property was used for personal use. That is the personal use test. How you deduct your rental expenses is going to largely be determined by whether or not the personal use test is satisfied. Finding out the actual quantity of days in the past year in which the real estate property was leased out at fair market value is the initial step in calculating the personal use test. The next step is to multiply that number of days by ten percent. We will label the outcome the “total days rented” or “TDR” for short. The next stage will be to figure out how many days the rental property was employed for private use. We can label this “personal use days” or “PUD” abbreviated. Look at the table below for a vision of the personal use test.

NOTE: “Personal use” consists of use by you, any other owners of the home and property, plus the families of all individuals who own the property, unless of course your family member is paying out rent at fair market value.

If TDR is…

and PUD is…

then the personal use test is…

over 14

less than TDR

not satisfied

under 14

less than 14

not satisfied

over 14

more than TDR


under 14

more than 14



If test is satisfied. If the personal use test is satisfied, you will deduct your rental expenses only to the extent of the rental income. A net rental loss will not be attainable, but when there are any additional expenditures you do not write off this year, they can be moved forward to later years, provided that there is an adequate sum of rental earnings in the tax year in which you claim them.

If test is not satisfied. Your own leasing costs will never be restricted by the rental income if the personal use test is not satisfied. You could deduct your rental costs and also have a net rental loss. There could be a few passive activity rules, however, which may still restrict the rental loss tax deduction.

Computing all of your rental expenditures. A number of expenses should be allocated between leasing and personal application. These include expenditures that will have already been charged no matter the use, such as real estate taxes and mortgage interest. Find out the whole number of personal use days. Then, you will need to determine the total quantity of TDR. After that, divide rental days by the sum of PUD and rental days. The end result is the rental percentage. Finally, you have to multiply the total cost of your expenses by the leasing percentage that you have established, and then the result will be the rental deductible part.

Leasing a Section of Your House

You need to expressly allot all your costs in between private usage and leasing use if you rent out a part of your own personal home. The IRS allows a little versatility with the method you employ; just make sure it’s consistent from year to year. Some people choose the option of taking the number of rooms within their residence along with the number of rooms within the home, and divide them. Dividing the rented sq . ft . by the residence’s total sq . ft . is another option that lots of people go for. You’ll end up with rental costs and personal costs. Those allotted to the leasing income can be deducted as such, and you can use Schedule A of Form 1040 to deduct what’s left.

Redmond CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is the owner of his own small business, Huddleston Tax CPAs. He is a graduate of Washington State University and the University of Washington School of Law.

For more information on rental property deductions check out this video from Huddleston Tax CPAs:

Tax Deductible Rental Property Expenses: Insurance, Cleaning/Maintenance, and Repairs

Since you now are currently renting property to obtain income, it is vital to ensure that a number of fees and professional services are correctly set up and documented for IRS purposes. Below, we’ll name a few of these fundamental expenses.


Insurance payments are pre-paid ahead of the given period of time. An illustration here would be: you purchased insurance protection for this specific rental property on March 2012 for $1200. The protection time period is from April 2012 to March 31, 2013. Since the insurance coverage timeframe does extend past the current tax year, you have to apportion and allocate the insurance premiums pertinent to this present tax year only and carry forward the balance for the upcoming reporting period. This means that $900 (9 months April to Dec 2012) or $100 per month of qualified rental utilization will be your tax deductible premium.

Note that some Insurance companies frequently bundle insurance premium plans between personal and business clients for a mark down charge. Only the company rental property pertinent part will be deducted. You need to use your individual income tax return to write off any non-business or personal use. Lastly, Title insurance isn’t suitable as an expense and must be inside the Cost Basis of the property.

Cleaning and Maintenance

If it’s related to daily cleaning and repair of general spaces, then everyday maintenance of the property is an authorized expense. Even so, the costs are only allowable when they are not on personal use days, but are on permitted rental days. Many property owners get long term contracts with local services to keep up the rental property on a continuing schedule to ensure it’s in running and useable order. This could include such expert services as window cleaning, dusting furniture, cleaning home appliances and general maintenance. Just these sorts of expert services are permitted, any major structural improvements and/or changes will have to be allotted to the Cost Basis of the rental property.


From time to time, there will probably be some sort of necessity to mend an appliance, touch up a bit of painting, or some kind of endeavor which doesn’t call for a major reconstruction of the property structure. Depending on the leasing period, you’ll be able to write off these required and typical expenses.

Don’t include any kind of periods which will be looked at to be individual use days, because expenses are only allowable in relation to the earnings of the property. The only expenditures which are deductible are those which are related to the authorized rental time period, specifically.

  • You can obtain the various forms outlined in this article on the IRS’s site. Reference IRS Publication 527 for additional information.

Redmond CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

Deductible Motor and Regional Travel Business Expenses Related to Property Ownership

Travel expenses considered required and ordinary are deductible. Certain expenditures you may be able to write off range from the expense of employing your own personal vehicle to receive rental payments from occupants as well as performing property maintenance tasks. Given that driving to and from work is a private expense it isn’t allowed for deductions. Moreover, you may not write off the cost of travel to the property to provide improvements. That is usually recoverable in a cost recovery process such as depreciation.

Actual Expenses

The many different expenditures regarding travel out of the home in association with the leased residences will be recorded in this method. These kinds of business expenses should be reported and supported by invoices and receipts as stated by IRS Publication 463, Chapter 5. A few software program apps are available using iPod, Quick Books, Mint, and more; nevertheless, you need to continue to have a tangible document to backup these tax deductions. It is necessary to report this on either a Schedule C or Schedule E. All expenses need to be allotted to each residence where expenses were accrued if you have different properties. Remember to not add in any type of personal use of vehicles or any other type of use apart from that which is pertaining to your rental properties.

Mileage Method

All mileage drive during the year is deductible at $0.55.5 per mile. You may deduct the total cost.

Using local transport like Zip Cars, metro bus, and auto rentals will need to have a principal correlation to the premises and should have documentation to support this. If using public transport, it is strongly suggested that you maintain records of travel costs. It is advisable to correlate all Zip Car and rental car costs to a business account tied directly to your rental property business.

Quick Note: You can obtain the different documents outlined in this information on the IRS’s webpage. Reference IRS Publication 527 to find out more.

Redmond CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

Necessary Tax Documents Concerning Reporting Rental Income

The following brief article is focused on all the IRS tax documents you must have as a landlord to be able to fully record, and report, your rental revenues to the Internal Revenue Service. Based on the particular professional body which possesses the rental, the tax documents required vary, as laid out below (individual, partnership, corporation, or LLC). Look at the page titled Best Rental Property Ownership, provided in this Guide, for more information on the subject of legal entity ownership.

Quick Note: You will discover the various documents discussed in this article on the Internal Revenue Service’s website: The required documents will be found in any tax prep computer software, if you work with one.

Individual Ownership

Joint property ownership with a husband or wife, joint tenancy with right of survivorship, plus tenancy in common would be examples.

Form 1040. Initially, you will need Form 1040, the form used by all independent people. Your current total rental earnings or loss subjected to taxes are at line 17 of the very first page in Form 1040. You will not be permitted to take advantage of simplified Forms 1040A or 1040-EZ, as a good landlord with leasing activity.

Schedule E. Schedule E is one addendum to Form 1040. Of this addendum’s many different applications, just the application of reporting rental income and expenses is important to your needs. The one part of Schedule E that you have to fill out is the portion titled “Part I”. There are several essential tips you should remember, such as: if you happen to own the rental property mutually with someone other than your significant other, report only the profits that you received plus the expenditures that you sustained. Bear in mind, additionally, that you’ll have to allocate costs between rental and non-rental use should you be leasing a part of your personal home, or if you only leased for part of the entire year. Look at the series of articles called Tax Deductible Rental Property Expenses, included in this Guide, for additional info.

Form 4562. At line 18 of Schedule E, you can deduct the depreciation on the property, that you will use Form 4562 to figure out. Read the article entitled Depreciation Expenses for Rental Property, within this Guide, for further tips.

Partnership/Corporate Ownership

A general or limited partnership, or S corporation is an example.

Form 1065/1120-S. For people who have a collaboration, you have to utilize Form 1065, the tax form a partnership utilizes to report all its company activities. An S corporation employs Form 1120-S to report its enterprise activities. Your annual total rental revenue or deficit will be reported on Schedule K, line 2 of Form 1065 or 1120-S (Schedule K is embedded into the documents).

Form 8825. This form functions similar to Schedule E, but for partnerships and S corporations. Schedule E and Form 8852 are basically very much the same. Make sure to disclose whole sums of all revenue and costs sustained by the partnership or corporation (Down the road, these should be allotted to each investor or partner).

Schedule K-1. This tax document reports the net leasing income or financial loss owing to each partner or investor as outlined by that partner or shareholder’s property ownership interest. Each partner should get her / his own personal K-1 and should report the details of that K-1 on her / his Form 1040, Schedule E, Part II.

Limited Liability Company Ownership

You’ll be able to file like you were an independent owner as, for income tax uses, a single-member LLC is really a disregarded entity (see above). A multiple-member LLC has the option to be taxed as either a partnership or as an S corporation (see above).

Auburn CPA +John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

Home Office Deductions for Landlords: An Overview

Many tax payers are leary of home office deductions, concerned that these tax deductions are more likely to inspire an IRS audit. The IRS claims there is no legs to this claim. No matter the case, follow the rules and you should have no concerns.

The key to this tax deduction is that rental property owners may claim this deduction if they are active, which is to say you must do more than cashing checks. If you consistently spend a substantial amount of time preparing and maintaining properties, you will likely qualify as an ACTIVE rental property owner.

If you meet the criteria for being an active rental property management the next requirement is that you must regularly use the office space solely for running your business as a rental property manager.

Additionally, you must meet at least one of the following conditions:

1. This office must be your principle space for running your rental property business.

2. You have no other fixed location where you perform the administrative activities that are required to operate your business.

3. You connect with clients there.

4. You use another structure on your property to conduct business.

After you have applied the threshold tests above and determined that the work area in your home does in fact qualify for the home office deduction, you will need to look into what kind of expenses are tax deductible. There are direct and indirect types. Direct expenses solely benefit the home office area of your home such as painting or cleaning. Indirect expenses benefit the entire structure and must be apportioned out between the office area and the rest of your house. Mortgage interest, insurance, property taxes and utilities are common examples of indirect expenses. Square footage is the conventional means of calculating the proportion of the home office in relation to the entire house to come up with a percentage. A 2,000 square foot house with a 200 square foot home office area would mean 10% of the indirect expenses could be deducted as part of the home office deduction. You can also depreciate the house structure (not the value of the land) in the same percentage over 40 years. However, this may complicate matters if the house is sold.

Since you don’t want any trouble if you do get audited, you want to keep good records to verify that you were entitled to take the deduction and that the claim has been accurately reported. You should document the home office space by a diagram and/or photograph that supports your calculations. It is smart to use your home office address on your business cards and other forms of communication and to have business mail delivered to the home office address. You should keep a log of client meetings and other time spent working there. Records you should keep to prove expenses include: property tax statements, utility bills, insurance premium notices, 1098 mortgage interest statements and receipts for any other relevant home office expenses.

This subject matter can get quite intricate and the aforementioned is only intended to give you a basic understanding of the circumstances that would allow you to take advantage of the home office deduction.

Redmond CPA +John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.


Deductible Rental Property Expenses, Part 1

This segment the Landlord Tax Guide focuses on the different types of expenses that you may deduct from your gross rental income in order to determine net rental income. As there are so many deductible expenses, this guide breaks down the topic into four different kinds. This first post will give attention to interest, advertising, and professional fee expenses.


If you’re renting a room in your home, or if it is a duplex and you’re occupying the other unit, you will need to pro rate the mortgage expense. (See the article titled Personal Use of Rental Property, included in this guide, for more on how to calculate personal use). Now if you are renting the property as its own living unit, you can deduct all of the mortgage interest you paid on Schedule E. Also, if you own only a part interest in the rental, you must multiply the total amount of mortgage interest paid on the property by your ownership interest. Be aware, however, that certain expenses you pay to obtain a mortgage (such as title/recording fees and commissions) are capitalized as part of your depreciable basis for the property, and are not expensed. See the article titled Depreciation Expenses for Rental Property, included in this Guide, for more on depreciation expense. Other types of interest may also be deductible, if you incurred the interest solely for the benefit of the rental property.


Fees you incur to to list your property on the open market and advertise are deductible. For example, classified ads that you invest in in the local newspaper, or any expenses in online advertising, are deductible.

Professional fees

You can deduct professional fees you incur in connection with the rental. For example, if you paid a lawyer to write a rental contract, or to initiate legal action to evict a tenant, you may deduct these fees. On top of that, one can deduct charges you paid to an accountant for preparing the Schedule E of your return from the past year. Be sure to pro rate the total preparation fee between the Schedule E and the rest of the return dependent upon the percentage of time it took. Any fees for preparing any section of the return other than Schedule E have to go on Schedule A as a personal tax prep expense. And, in the event that you pay any commissions or management fees to a realtor group for managing your rental, you may deduct these expenditures as well.

Redmond CPA has written prolifically on accounting and other tax related issues of concern to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

Startup Expenses and Tax Breaks

A number of expenses incurred as you prepare a rental property (in advance of ultimately renting) are deductible. So let’s take a look at several of these expenses.

Note: Startup expenses discussed here, differ from the expenses which qualify as deductible (under section 195 of the Internal Revenue Code.) Under section 195, certain startup expenses (in an active business or trade) are deductible up to $5,000 with a balance amortizable over fifteen years. Though, under the section 195 code, rental activity isn’t included since rental property is regarded a passive activity instead of an active trade or business. Find more information on passive versus active rules in the article titled Tax Deductible Rental Losses.

Note: It isn’t when you have literally rented a property that rental activity “begins”, but when you have made the property available for rent.

Expenses to Obtain Mortgage

Expenses such as mortgage commissions, abstract fees, and recording fees, are capitalized and grow to be part of your basis in the property. This means that you must depreciate such expenses, instead of expensing them all at once. See the article titled Depreciation Expenses for Rental Property, included in this Landlord Tax Guide, for a more in depth discussion on depreciation.


What are points? They are charges paid by a borrower to take out a mortgage or a loan. This points or charges may also be called origination fees, or premium charges, or maximum loan charges. Points are deductible as interest, but require that you amortize the points over the life of the loan. Determining the amount of points to amortize per year, is task beyond the scope of this article. Schedule a sit-down with an accountant.

Improvements versus Repairs

You must capitalize and depreciate all improvements you make to the property in advance of putting the rental property on the market. Improvements are those that prolong the use of the property or materially increase the market value of the property. On the other hand, you may freely deduct all repair expenses. A repair aims to keep your property in good working condition, not to increase the market value or prolong use.

Redmond Tax CPA has written extensively on accounting and other tax related subjects. He is a graduate of Washington State University and the University of Washington.

Rental Property Ownership

Let’s begin by taking a look at the various entity selection types that are available. Each has positives and negatives. As a rule of thumb, you’ll aim to protect your property from unsecured creditors and limit liability. So let’s unroll the list and see what our options are…

When forming an entity, you will have to visit SOS.WA.GOV to register.

Note: This guide wont serve to replace the expert council of a Redmond certified public accountant or tax attorney. You should seek qualified professional counsel when setting up an entity and shifting ownership of a rental property.

Individual Ownership

This is the most common and the most straight forward method of ownership and occurs when you purchase a rental property in your own name. This includes owning the property with your spouse, or as joint tenants or tenants in common with someone else. The big benefit is that this is straightforward, for one it doesn’t require you to file any complicated paperwork or pay any heavy filing fees. The biggest disadvantage to this form of ownership is that your creditors may be able to force a sale of the rental property if they receive a mandate against you, or compel you into an involuntary bankruptcy.

Legal Entity Ownership

Legal entities include limited liability companies, corporations, general partnerships, and limited partnerships. Let’s take a look at the differences in a bit. Now we’ll look at the major advantage of entity ownership, that being with entity ownership your personal creditors can’t force a sale of the rental property. The only entity type that does not require registration with the secretary of state is the general partnership. Regarding taxes, the entity type does not matter that much because in most cases rental income is taxed on your personal tax return, or “passes through”, See the article titled “Necessary Tax Forms for Reporting Rental Activity,” which is included in the Landlord Tax Guide.

General partnership. The partnership is an association of two or more people to carry on as co-owners of a for-profit business. Generally partnership, each partner will have equal management rights, but is personally liable for the debts of the partnership. And regarding that liability, a general partnership is generally not ideal.

Limited partnership. A limited partnership is more tricky as this method of ownership calls for at least one general partner and one limited partner. The limited partner isn’t personally liable for the debts of the partnership, but then again has no management rights. Now the general partner has sole management rights, together with personal liability for any debts of the partnership. This arrangement is typically not advised.

Limited liability partnership/company (LLPs or LLCs). A limited liability company and a limited liability partnership are quite similar entities, both providing for limited liability to partners/members. This means you will not be personally liable for the debts of the entity, that is unless the debt is a result of your own wrongdoing. This type of ownership often is preferable because of limited liability and there are fewer formalities which require observance than with corporations.

Corporations. This kind of ownership offers you limited liability and allows for perpetual existence. Although they also require the observance of special formalities for you to maintain the limited liability guard. So for this reason that LLPs or LLCs are sometimes more apt for your purposes. Also worthy of mentioning is that corporations have the distinction of being either c-corp or s-corp. When a corporate entity is taxed as a c-corporation, then it pays tax on rental income, and then you will pay tax (again) when the corporation pays dividends. And it is more desirable to avoid the double-taxation trap whenever it is possible.

Tax CPA  has written extensively on taxes and accounting. He is a graduate of the University of Washington and Washington State University.

Prior to Purchasing a Dental Practice

It is a very important that you give yourself due consideration in deciding where to buy, how to go about it, and what kind of practice to purchase.

Research Research Research

Dentists must not rush into a purchase, and need to manage their expectations, understanding that the process will take some time. There is no need to hurry through important steps and be impatient. Buying the right dental practice for you matters more than closing a deal quickly when the first opportunity presents itself.

Find the Best Location

Think about where you might like to live. You’ll end up being a big part of this community, so you’ll want to make sure it’s a good fit. Establishing a connection with the locals will help your business succeed. And ensuring a shorter commute could also pay off. No one wants to face a long round-trip commute year after year.

Establish yourself amongst people you can relate to and people you can enjoy. Your practice and your interpersonal life will reap the benefit. Intercity or rural–what’s best for your family? Let the location of your competition inform your decision. Other issues are whether or not your spouse needs to find work, and the quality of the school system in the area.

Determine the Ideal Practice for You

Take special care in determining the size and type of dental practice that matches your preferences and needs. Do you want to practice general dentistry or do you prefer an expensive practice that focuses on cosmetic dentistry? Do you prefer a long client list with a five-day-a-week-schedule? Or do you want a smaller practice, with a slower pace, that will allow you to work fewer hours? These decisions affect your finances and stress levels–what can you reasonably make work?

Seek an Appraisal

Have the business appraised with the help of a certified public accountant or valuation specialist. And prefer a professional that has experience with dental practices. This way you can establish a frame of reference for what local dentists practices, similar to your own are worth.

Assemble a Team of Professionals

Trying to save money by being completely self-sufficient is a poor decision when you plan on purchasing a dental practice. You’ll have to rely on the expertise of others as your patrons will have to rely on you. In the long-run, investing in advisors will save you a lot of trouble. Here are a few people you’ll need:

  • A tax accountant experienced in aiding dentistry practices and other small businesses on reducing tax burdens and remaining tax compliant. You want an accountant who can do more than just prepare your tax returns. Find a cpa to advise you on the best entity structure for your small business (LLC, PLLC, Sole Proprietorship, S-Corp, C-Crop).
  • A Bookkeeper who has familiarity in a small business accounting system such as Quickbooks. A certified Quickbooks Advisor means they are certified by by Intuit as knowledgeable with the Quickbooks platform.
  • An attorney at law to protect your interests and review documents.
  • A consultant also will most probably prove valuable in the long run, helping you achieve goals.
  • Establish a relationship with a bank early on. Getting prequalified, and ready to finance, will help you gain a handle on how much you can afford when putting in an offer.
  • An insurance representative will assess the value of your business and evaluate risk to see just how much coverage you will be needing.
  • It never hurts to seek the help of a mentor that has experienced similar circumstance to those you’ll face.
  • A marketing expert-preferably someone with knowledge of internet marketing.

Purchasing a dental practice is a huge step in the career of a DDS. Be prepared for success.

ax CPA John Huddleston has a law degree and masters in tax law from the University of Washington School of Law. He has been a guest tax expert on the radio. He advises small businesses in the Seattle Bellevue Tacoma & Everett area on various tax and accounting issues. His firm, Huddleston Tax CPAs, also provides tax preparation service, quickbooks consulting, business valuation, general accounting and bookkeeping service. Profile information on CPA John Huddleston and the CPAs employed by Huddleston Tax CPAs is available at CPA tax accountant profile. Seattle CPA John Huddleston is a frequent publisher of tax saving ideas.

Supporting Documents & Form 656

Preparing Form 656 and Supporting Documentation in Attempting an Offer for Compromise of IRS Back Tax Debt

An Offer for Compromise (OIC) is a tax settlement offer from the Internal revenue service to taxpayers, both individuals and businesses, who are unable to manage their tax debt. There are certain strict criteria that determine eligibility to request the OIC. And if you satisfy these requirements, you will need to fill out Form 656 and submit a whole host of supporting documents to be considered for an offer.

Preparing Form 656 (OIC)

There are two circumstances in which you’ll meet the requirements to file Form 656. In the first, you’re making a case that paying the full amount of owed taxes will create economic hardship. In the second, you are make the case that there is doubt as to collectiblity.

Now that you know the circumstances in which you will need to prepare Form 656, here’s what you should remember when completing the form

• You will have to provide the names of both the parties if you are pursuing a joint offer for joint liabilities. When you owe a joint liability and both your partner and you are submitting for an OIC, then you’ll want to do so on Form 656, just one form. You might owe a liability, such as employment taxes for yourself and hold other liabilities, such as income taxes, with another person. If you are submitting this offer solely this form, then you will need to list all liabilities on one of Form 656. In case both of you want to submit this application, then you have to include all tax liabilities on your Form 656 and the other person must show only the joint tax liability on their Form 656.

  • You’ll have to include the relevant information in every field on the Form 656.
  • All persons submitting the offer should enter their social security numbers.
  • You need to give the employer identification numbers of all businesses, except corporate concerns, that you own, either wholly or partly.
  • If your claim to an Offer for Compromise is based on a Doubt as to Collectability, you need to also furnish a completed Form 433A if you are an individual taxpayer and Form 433B if you are a business taxpayer.
  • If your claim to an Offer of compromise is based on Effective Tax Administration, then apart from submitting a Form 433B or 433A, you also fill out the info in the “Explanation of Circumstances.” You can include supplementary relevant information in separate sheets along with your social security and employer identification numbers.
  • When supplying the total amount of your offer, you don’t include a sum that the IRS owes you or any amount that you may have already paid in taxes.
  • All persons submitting the offer should sign the 656 Form and give the date. They must supply as well the titles and names of authorized corporate officers, trustees, Powers of Attorney, and executors where requested.
  • Be sure that you disclose the name and where possible, the address of the OIC preparer.
  • You might want the IRS to contact a a friend, a family member, or any other acquaintance to discuss your case so that they may understand your state of affairs better. In that case, you’ll need to mark the “Yes” box in the “Third Party Designee” field. Additionally, if you would like a CPA, your attorney, or an enrolled agent to represent your case, you need to furnish the 2848 Form and submit it in addition to your offer. to improve the chances of your offer being accepted. Once you have gathered all the documents for submission, ensure that you make electronic copies or hard copies of each one for your personal records. Apart from these documents, you might also submit additional documents that you think will corroborate your claim for the offer.


Filing for the Offer of Compromise is complicated. Make sure to spend ample time on Form 656 and submit all supporting documents to increase your chances of success.

For more on Offer in Compromise solutions, visit:
Seattle Offer in Compromise
Accountants and Tax Preparers in Bellevue

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  • Huddleston Tax CPAs / Huddleston Tax CPAs – Redmond Accountants
    Certified Public Accountants Focused on Small Business
    40 Lake Bellevue Suite 100 / Bellevue, WA 98005
    (800) 376-1785

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
    QuickBooks consulting, bookkeeping, payroll, offer in compromise debt relief, and business valuation services for small business.

    We serve: Tukwila, SeaTac, Renton. We have a few meeting locations. Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.