Defaulted on your IRS installment agreement? Where do you turn now?

You promised the IRS a monthly payment that your budget could no longer bear.  Or you tried so hard to repay your back taxes that you fall behind on this year’s return.  Your intentions are good, but this has caused your IRS installment agreement to default.  Where do you turn next?
First, it is important to know that the IRS must send you a notice of [...]

Knock, knock – the IRS is at my door – how should I handle it?

I received a call this week from a small businessman in Cincinnati who had an IRS Revenue Officer sitting in his living room.  Technically, he did not have to let the Revenue Officer in his house, but he did.  I am glad he called me. 
My client handled the situation correctly – professional, courteous and honest.  This [...]

IRS collections in troubled times

Everyday, I see how the IRS is responding to people hurt by the economy. The Journal of Tax Practice and Procedure asked me to write an article about it  - ”IRS Collections in Troubled Times.”
Current IRS enforcement is centered on recovering government money that was spent to stabilize the economy.  As a result, the IRS is [...]

Non-filers with mortgages: The IRS might be watching

I received a call from a Wall Street Journal reporter on a story he was writing on an IRS announcement that they might use mortgage interest payments to identify non-filers.
It goes like this:  You have not filed tax returns.  You are self-employed and your income is not reported to the IRS.  But you own a [...]

The first step to ending IRS collection problems: Finding the money for estimated taxes

If you have had trouble paying taxes to the IRS in the past and would like to settle up, the first step is to ensure that you are paying your taxes now.  The IRS will not negotiate unless it sees that you are current on your taxes. And any solution that is negotiated will quickly [...]

NAEA and the National Tax Practice Institute

I am fortunate that the National Association of Enrolled Agents has invited me to their annual Tax Institute on August 9 -11, 2009 in Baltimore, Md.
Here are the outlines for the topics I will be speaking on:
IRS collections
Tax bankruptcy
Trust fund recovery penalty
For more information on the NAEA and the National Tax Practice Institute, visit their [...]

How common are IRS mistakes in property seizures?

The IRS appears to be human, and it makes legal and administrative errors when seizing property, says the Treasury Inspector General for Tax Administration (TIGTA).
TIGTA just completed a review of 50 IRS property seizures to determine if they complied with the requirements of Internal Revenue Code sections 6330 to 6344 and Internal Revenue Manual guidelines.
Here [...]

All of it, or just 15% – IRS manual and automated levies on social security benefits

A reader asks the following regarding IRS levies on social security benefits:
What is the difference between an automated federal levy on social security and a manual tax levy, and why does the IRS choose one over the other?
Here is my response:
1.     Automated Levy (15%).  Pursuant to section 6331(h) of the Internal Revenue Code, [...]

Why a tax lawyer can make a difference

I am often asked by new clients how a tax lawyer can make a difference in an IRS dispute.  Here is my answer:

Once you retain a tax lawyer, the IRS must stop calling you.  The IRS is required to conduct all negotiations – telephone calls, meetings, etc. – through your attorney.  This valuable “buffer” allows [...]

IRS Commissioner Douglas Shulman on IRS collections during recession

Today IRS Commissoner Douglas Shulman gave an interview on National Public Radio (NPR) about how the IRS will be dealing with hardship cases during these difficult economic times.
Shulman did not addresss what is really holding up IRS collections – an offer in compromise system that accepts only 25% of the offers it receives.  The IRS collection guidelines [...]

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