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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?

Scenario 1. The individual is self employed, bills his clients thru an "LLC type corporation". The individual's tax return is filed as 1040, self employed. With the net income of the LLC listed as income on the 1040.

Scenario 2. The individual is the sole shareholder of a "subchapter C corporation" 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.

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?

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Yes, but differently

Scenario 1: the individual owns directly all the assets of an LLC so each and every asset must be listed.

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.

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