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[Music] welcome my fellow tax professionals today well be discussing collateral agreements that are part of an offer and compromise agreement Im your host attorney Robert shallow at the author of the course a collateral agreement is an agreement between the IRS and the taxpayer that offers additional consideration to the offering compromise agreement an example this would be a future income collateral agreement a future income collateral agreement is an agreement where the offer and compromise amount is less than what the IRS would expect because the taxpayer is currently underemployed or unemployed so for example if you had a high wage income earner who is currently underemployed or unemployed the IRS may ask for a collateral agreement so that if the taxpayer were to regain full employment at a higher income the IRS recouped more of the back taxes a clatter agreement is important that you understand so study the chapter carefully let us begin by exploring the definition of a collate
