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.
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 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.
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.
IRS Revenue Agents, IRS Tax Compliance Officers, IRS Offer Examiners, IRS Appeals Officers, IRS Settlement Officers... Know who's who at the IRS Office.
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.
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.
Currently not collectible is when the IRS acknowledges that the taxpayer cannot make payments and will therefore suspend IRS collections actions.
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...
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.
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.
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.
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.
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An IRS lien is a measure taken by the IRS to protect the value of the debt it believes it is owed. 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.REad More
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.REad More
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).REad More
IRS collections process starts with a tax assessment which begins the process of recording a tax liability. For some people, tax assessment leads to a tax refund. Tax assessment is a neutral term, it simply reflects how the IRS keeps its records. Filing tax returns, is really you doing your own assessment.REad More