Answer: Depending upon the specifics of your situation, it may be possible to avoid hundreds, or even thousands, of dollars in penalties simply by “designating” IRS installment payments applied toward your tax liability. Keep in mind that payments made in accordance with a formalized installment agreement are not considered voluntary, so you have no right …
IRS Installment Payments: Can I Avoid Back Tax Penalties Read More »
Many individuals and businesses who fall behind with their taxes are struggling to make ends meet as it is, and the last thing they need is the added stress of having to figure out a way to resolve their tax debt. Many simply don’t have the ability to repay their entire tax liability in full, …
IRS Partial Payment Installment Agreements: Screaming Deal or Big Mistake? Read More »
Over my many years representing taxpayers who are in collections, I have negotiated hundreds of IRS and State Installment Agreements. During this time, I have developed a list of important information I need from my clients in order to negotiate the best possible monthly payments for my clients’ unique conditions. Here, I will share my …
State Tax & IRS Installment Agreements: 5 Keys to Negotiate Read More »
Resolving a serious tax liability, whether by way of an Installment Agreement, Offer in Compromise (OIC), or Currently Not Collectible Status, is often a painstakingly difficult, time-consuming, and stressful process. So, the last thing anyone who survives this process needs is to wind up defaulting their agreement. It’s really bad news. Not only will the …
How to Avoid Defaulting an IRS Tax Resolution Agreement Read More »
If you have accrued a tax liability and think that an IRS collection representative will cheerfully explain how to best go about resolving your tax debt, think again. The IRS does a terrible job of advising taxpayers about their options for resolving unpaid taxes. The IRS Collections Department’s function is to collect as much of …
The Keys to “Easy” IRS Installment Agreement Negotiations Read More »
The CP523 notice of intent to levy intent to terminate your installment agreement is more or less saying that the agreement is in default and may terminate in 30 days. If the agreement does terminate, involuntary enforced collection action will commence. This could mean garnished wages, levied accounts receivable or levied bank accounts. This could …
Most people who have had the misfortune of getting behind with the IRS have heard about tax settlements, otherwise known as Offers in Compromise (OIC), as a method for repaying far less than the full amount owed. Many fewer realize that there is an alternate method that can effectuate a similar result: the repayment of …
Benjamin Franklin once said that nothing is certain in this life but death and taxes. I’ll agree that none of us will cheat death. But I may quibble with Mr. Franklin on the issue of whether or not you have to pay all of your taxes. Under the right set of circumstances, full payment of …
Can I Resolve Back Taxes By Qualifying For Currently Not Collectible Status? Read More »
To some business owners, the accounting part of their business is the last thing they want to deal with. “Leave that to the accountant or bookkeeper and let me get to work” is the sentiment I get from a lot of small business owners. Accrual Method of Accounting Many business owners just don’t have the …
Cash And Acurral Methods Of Accounting Can Impact The Outcome Of A Tax Collection Case Read More »
Earlier this year, I received a voice message from a producer for a television show called Moving America Forward, hosted by William Shatner. The message stated that they were interested in speaking with me about possibly appearing on their nationally broadcasted television show. Moving America Forward Interviews Fortress Financial Services I was intrigued to say …
On December 4th, 2015 President Barack Obama signed into law the “Fixing America’s Surface Transportation Act” to improve the Nation’s surface transportation infrastructure. Also referred to as the FAST Act, the legislation included a provision which requires the Internal Revenue Service to outsource certain tax debts to private debt collection agencies. The idea behind the …
Congress Instructs IRS To Outsource Collections To Private Companies Read More »
In order to be eligible to resolve an outstanding federal tax liability on a voluntary basis (e.g. Installment Agreement, Offer in Compromise), as opposed to having it forcefully resolved through collection action such as levies, garnishments, and the seizure of assets, the IRS has two basic requirements. The first requirement is that you are in …
Recently I was engaged in a heated discussion with an IRS Settlement Officer. The subject was an Offer in Compromise (Tax Settlement) I had filed on a client’s behalf. The IRS did not want to approve our Offer because they noticed that my client had been late with a few tax payments during the time …
OK, so you’ve negotiated an IRS Installment Agreement for your IRS tax liability, and can finally breathe easy because you will not have to deal with your Revenue Officer anymore. Time to celebrate, right? Not so fast. IRS employees frequently tell me that the vast majority of Installment Agreements default before the balance is paid …
You have read the Form 656, IRS Offer in Compromise booklet, the rules under the Fresh Start Initiative, and perhaps even hired an attorney or other representative to help you submit your Offer in Compromise to the IRS. You feel you have sent in a complete Offer, with all documentation attached. You feel the IRS should …
IRS Offer in Compromise: Common Challenges to Approval Read More »
Any time a taxpayer incurs a balance due to the IRS, the IRS’s first response is almost invariably to demand that the debt be fully paid, immediately. However, in many situations, the taxpayer does not have the ability to fully and immediately pay the tax debt. This inability to quickly resolve the liability can lead …
