IRS Legal Defense

Find answers to your IRS legal defense questions and connect with Tax Lawyers who can assist you.

IRS Offer in Compromise

There are three types of offers in compromise (OIC). An offer in compromise based on doubt as to tax liability; offer in compromise - doubt as to collectibility; and an offer in compromise made to the IRS based on effective tax administration.

IRS Installment Agreement

If you're not a good candidate for an offer in comprimise, you will want to discuss installment agreements with your IRS tax defense lawyer. Your IRS tax defense attorney will explain the three different types of IRS Installment Agreements: Streamlined Installmenet Agreement; Statutory Installment Agreement; and Partial Pay Installment Agreement (PPIA).

IRS Penalty Abatement

IRS penalties can add up quickly. More so because if tax liabilities remain unpaid - not only does the IRS tack on penalties, but they also tack on interest. Through successful penalty abatement, the tax penalties are removed. The interest on those penalties will be removed as well.

Types of IRS Collection Notices

The five types of unpaid tax notices are: an IRS balance due notice; IRS important notice; IRS urgent notice; IRS refund levy; and a final notice - IRS intent to levy letter.

Who's Who at the IRS

IRS Revenue Agents, IRS Tax Compliance Officers, IRS Offer Examiners, IRS Appeals Officers, IRS Settlement Officers... Know who's who at the IRS Office.

IRS Collection Statute of Limitations

The IRS does not have an unlimited time in which they can assess tax penalties and take collections actions. The time limit in which the IRS can take action against a taxpayer is referred to as the "statute of limitations." However, the law provides for certain events which can extend the IRS's collections timeframe.

IRS Innocent Spouse Relief

It is impossible to bring an innocent spouse case unless the married couple files a joint tax return. If a married couple has filed jointly, the next pre-requirements are (a) the couple must still be together and (b) there must be an understatement of tax liability on the filed tax return.

IRS Currently Not Collectible

Currently not collectible is when the IRS acknowledges that the taxpayer cannot make payments and will therefore suspend IRS collections actions.

IRS Appeals, Collections Appeals Program, and Equivalency Hearings

The IRS is the very definition of a "large bureaucratic government agency" which is understaffed and underfunded. As a result, sometimes the taxpayer does not get...

IRS Audits

There are two types of IRS audits which may warrant hiring an IRS audit lawyer; a correspondence audit, tax compliance audit, and an on-site audit.

IRS Income Financial Analysis

The IRS Income Analysis looks at Gross Wages, will deduct IRS allowable expenses. The result is called "Excess Income." Excess Income is then multiplied by 12. The resulting figure is added to the IRS equity/asset test to get the number the IRS will accept as an Offer in Compromise.

IRS Lien vs. IRS Levy

An IRS lien is a measure taken by teh IRS to protect the value of the debt it believes it is owes. The government doesn't actually take anything from the taxpayer by virtue of the fact that an IRS tax lien has been filed. An IRS tax lien just secures its places and indicates a willingness of the government to take action against the value of the taxpayer's property to force the taxpayer to pay the IRS lien. An IRS levy is more serious. It's when the IRS actually takes something from the taxpayer.

IRS Collections and Bankruptcy

Taxpayers often believe that their IRS tax lien is not dischargeable in bankruptcy. This is partially true and partially false. Payroll and trust fund recovery taxes are not dischargeable in bankruptcy. Income taxes can be discharged by filing bankruptcy under certain conditions.

Have an IRS Defense Question?

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Important Concepts When Making an Offer in Compromise or Proposing an Installment Agreement

When rationalizing an offer in compromise or installment agreement, your IRS debt tax advisor is really always focusing on three key concepts, that is, justifying expenses that are related to: the health and welfare of the family, the production of income, or that the IRS action will create a burdensome economic hardship.

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IRS Employment Taxes - FICA and Payroll Withholding Issues

Employment tax issues involve: FICA taxes (also called social security and Medicare taxes) and FWT / Payroll withholding. There are quarterly payroll tax returns (IRS Form 941) that the employer is supposed to file with the IRS. For businesses with IRS tax issues, it will more likely than not involve FICA or Federal Payroll Withholding tax trust fund issues. This is a really interesting for your IRS tax lawyer because there are many ways to solve IRS employment tax issues and your tax professional gets the satisfaction of being able to help business owners stay in business and get back on track with the IRS.

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IRS Offer in Compromise Planning | IRS Legal Defense

If you're looking for more information about an IRS offer in compromise, consult an expert tax lawyer who can help you get through

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IRS Equity Financial Analysis

The Equity Component to the IRS’s financial analysis looks at assets and deducts liabilities on those assets (e.g. a car worth $50,000 with a $20,000 loan remaining is an asset valued only at $30,000 in the eyes of the IRS). Similarly, while I discuss the Income portion of the IRS’s financial analysis in another article, briefly, if a household brings in $9,000.00 per month in total wages, but has $7,000 in “allowable expenses” (per IRS standards), the IRS will only count $24,000 as income ($2,000 x 12).

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