Key Takeaways The IRS now runs over 126 active AI use cases from audit selection to automated levy decisions and enforcement timelines have shrunk dramatically. A projected annual gross tax gap of $696 billion is what’s fueling this unprecedented IRS tech investment in 2026. Automated levies can now hit your bank account or wages with
New IRS Technology in 2026: AI Tracking, Automated Levies & Compliance Read More »
Key Takeaways Yes, the IRS can and does shut down businesses for willful, repeated payroll tax noncompliance, including seizing assets, levying bank accounts, and filing federal tax liens. Payroll taxes are treated as “trust fund” money. The IRS views nonpayment as theft because these are your employees’ withheld funds, not yours to use. The Trust
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Key Takeaways IRS Installment Agreements and Offers in Compromise require strict tax compliance before any relief option can be approved. Tax compliance includes filing all required tax returns and staying current on federal tax deposits or estimated payments. Individuals must meet quarterly estimated tax payment requirements if withholding does not cover expected tax liability. Businesses
Summary The majority of IRS installment agreements default before completion, leaving taxpayers exposed to aggressive collection actions. Notice CP523 is issued when an agreement defaults, giving taxpayers 30 days to respond before enforcement resumes. In 2025, with IRS funding expanded, enforcement actions like levies, liens, and wage garnishments are at record highs. Defaults often result
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Summary Understanding the critical role of IRS Settlement Officers in resolving tax disputes. How the IRS chain of command impacts tax relief efforts, including Offers in Compromise. The importance of persistence and thorough preparation when appealing IRS decisions. Key updated 2025 IRS procedures and facts related to tax settlements and appeals. Professional guidance is vital
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Summary Currently Not Collectible (CNC) Status is a temporary IRS designation indicating a taxpayer cannot pay their tax debt due to financial hardship. It does not eliminate the debt but delays collection efforts. Eligibility Criteria include demonstrating that your income and necessary living expenses are insufficient to cover your tax liabilities. The IRS may require
Can I Resolve Back Taxes By Qualifying For Currently Not Collectible Status? Read More »
Summary You can designate voluntary IRS payments to specific tax periods, penalties, or interest to minimize penalties and control your tax debt. Without designation, the IRS applies payments in its best interest, often increasing your penalty costs. Strategic payment allocation focuses on recent tax periods, reducing the risk of penalties reaching the maximum. Understanding the
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Summary A Partial Payment Installment Agreement (PPIA) lets taxpayers pay less than the full IRS debt if they qualify under strict financial hardship rules. In 2025, the IRS continues to apply 10-year collection statute rules and periodic reviews every 18–24 months. While a PPIA may feel like a “deal,” the IRS can increase payments if
IRS Partial Payment Installment Agreements: Screaming Deal or Big Mistake? Read More »
Summary The IRS now offers streamlined Installment Agreements for tax debts up to $250,000. Knowing how much you owe is essential to qualifying for simplified payment arrangements. Understanding your monthly budget allows for more favorable negotiation outcomes. IRS living expense standards influence how much you’re expected to pay. Preparation helps prevent enforcement actions like
State Tax & IRS Installment Agreements: 5 Keys to Negotiate Read More »
Summary IRS now assesses escalating penalties for late deposits: up to 15%. New IRS notices (like CP523) signal possible termination of your agreement. Civil penalties often arise years later and can unexpectedly trigger default. Online tools now allow better tracking of payments and compliance. Being proactive and paying penalties immediately can prevent default. How to
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Understanding and Resolving IRS Tax Liabilities: Expert Insights Dealing with tax liabilities can be an overwhelming experience, especially when facing the daunting task of negotiating with the IRS. Contrary to popular belief, the IRS is not in the business of providing taxpayers with comprehensive advice on how to manage their tax debts. Their primary goal
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Understanding the Accrual Method of Accounting: Impacts on IRS Installment Agreements For many business owners, accounting can feel like a secondary task. “Leave it to the accountant,” is a common sentiment, yet overlooking this aspect can lead to critical consequences, particularly when it comes to tax liabilities. Whether the issue stems from poor bookkeeping or
Cash And Acurral Methods Of Accounting Can Impact The Outcome Of A Tax Collection Case 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
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Understanding the IRS Payment Plan: Your Guide to Installment Agreements If you have an outstanding tax debt, an IRS Payment Plan—also known as an Installment Agreement—can be a lifesaver. The IRS often demands immediate payment, but many taxpayers simply cannot pay the full balance due right away. Fortunately, an IRS Payment Plan offers a manageable
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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. Fewer realize that there is an alternate method that can effectuate a similar result: the repayment of just
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