My client has an EIDL loan from the federal government and the IRS claims they can take the amount available and use it to pay their debt, and so are including it in their Offer calculation. My understanding is that the IRS does not require you to take loans to pay them. Can you confirm this, and what should I respond with?

Generally the IRS will have clients attempt to get loans against assets that taxpayer owns to try and tap the equity, however it does not generally require taxpayers to seek to get unsecured loans to repay the back taxes, like advances on credit cards, etc. EIDL loans proceeds are required to be used for certain business purposes, and in particular are not allowed to be used to pay individual tax debts, and should therefore not be included in the Offer RCP analysis as an asset.