OUR

 GOAL IS                                                  SMOOTH  

​     SAILING

               DANIEL CULLINANE CPA                                                              Phone:          732-516-1648

                           Certified Public Accountants                                                                                        FAX               732-516-9778

                               328 Amboy Ave, Metuchen NJ   08840                                                              

                                                                                                                                     


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​SET UP FREE CONSULTATION

1.Future income is defined as an estimate of the taxpayer's ability to pay based on an analysis of gross income, less necessary living expenses, for a specific number of months into the future.


2. As a general rule, the taxpayer's current income should be used in the analysis of futre ability to pay. This may include situations where the taxpayer's income is recently reduced based on  change in occupation or employment status.


3. Consideration shold be given to the taxpayer's overall situation including such facts as age, health, marital status, number and age of dependents. level of education or occupational training and work experience.


4. Situations that may warrant placing a different value on future income than current or past income indicates are discussed in the table below.. Additionally securing a future income collateral agreement based on the taxpayer's earnings potential may be appropriate:


IF   Income will increase or decrease or current necessary expenses will. A increase or decrease A taxpayer is temporarily or recently unemployed or underemployed

THEN  Adjust the amount or number of payments to what is expected during the appropriate number of months


IF A taxpayer is unemployed and is not expected to return to their previous occupation or previous level of earnings.

THEN  Contact the taxpayer to discuss the expected future level of income. When considering future income, also allow anticipated once the taxpayer is fully employed Dicuss the expected future level of income. When considerirng future income, also allow anticipated increases in necessary living expenses and or applicable taxes


IF A taxpayer is long term unemployed.

THEN  Do not income average. The taxpayer's current income should be used in the future income calculation. If there is a verified expectation the taxpayer will be securing employment then the use of anticipated future income may be appropriate. Anticipated future income should not be used in situations where future employment is uncertain.


IF A taxpayer is long term underemployed

THEN Do not income average. The taxpayer's current income should be used in the future income calculation. If there is a verified expectation the taxpayer will be securing employment then the use of anticipated future income may be appropriate. Anticipated future income should not be used in situations where the future employment is uncertain.


IF  A taxpayer is long term underemployed

THEN Do not income average. Use the taxpayer's current income.


IF A taxpayer has an irregular employment history or fluctuating income

THEN Average earnings over the tree prior years. The use of time period of time period oter than three years should be exception and only when  specific circumstances are present.


TRANSFERS. If the transfer and or sale took place more than three years prior to the offer submission, it may be appropriate to include the asset in the calculation of RCP if the asset transfer and or sale occurred either   within six months prior to or within six months after the assessment of the tax liability If the transfer took place upon notice of or during an examination, these time frame may not apply based on the circumstances of the case.


Situations may in which the transfer happened over 3 years prior to the offer submission yet because of the timing of the transfer (within sex months prior to or six months after the the tax assessment or after notification of an examination) the inclusion of the asset in RCP may be appropriate.


​FUTURE INCOME