IRS collection efforts are resuming from where they left off when COVID-19 first hit. The IRS has started sending their CP500 collection letters demanding payment. The IRS is making it clear that they are not going to remain quiet, as they were at the beginning of the pandemic. Expect the CP500s as the first wave of more aggressive IRS action to come. Let's start with a little background on COVID's initial impact on IRS collection enforcement. COVID's Initial Impact on IRS Collection Enforcement When COVID began, the IRS closed its offices, including all of their collection ... Read More
Should you listen to advice to file an offer in compromise?
Time and time again, I hear from clients who received advice to file an offer in compromise from an IRS collection agent, their accountant, or a friend. They took the advice and had their offer rejected by the IRS. When should you be comfortable listening to advice from someone urging you to file an offer in compromise? You need to make sure they know what they are talking about. To begin with, an IRS collection agent - whether it is a Revenue Officer or Automated Collection Service (ACS) representative - is usually not qualified to give you offer in compromise advice. IRS ... Read More
Rethinking IRS penalty relief: Don’t waste your time
The IRS charged you penalties for not paying and filing your taxes, and you want relief. After all, when you see how much the penalties have added to your bill, the logical next step would be to focus on having them removed. It makes sense - the penalties can be aggravating, and you would like to see the IRS give you a break and ease your mind. But asking for relief, or removal, of your penalties may not help end your IRS problem. Let's begin by looking at how much late filing and not paying penalties can add to your bill: For filing late and not paying, the IRS can add up to ... Read More
Collection statute expiration date nearing: How aggressive will the IRS be?
You have patiently waited for your IRS collection statute expiration date to arrive. But you anxiously wonder: As the collection comes closer to an end, will the IRS rear its ugly head and become aggressive? After all, the IRS isn't just going to sit quietly and let your tax debt simply disappear without a fight. They are going to want to make a last-minute push to see what they can get, right? Fortunately, the beast should not awaken and disturb you. Here's why your collection end date should pass with barely a whimper from the IRS: If you are in an installment agreement, ... Read More
IRS wants to interview you: Should you record it?
You owe the IRS back taxes, and a local Revenue Officer is coming after you to collect. Or maybe you received a letter from an IRS auditor stating that they are examining your tax return. Either way, the IRS is looking into your affairs. And as part of their investigation, you are asked you to appear at their office for an interview. Your mind begins to overload. What will they ask you and what will you say? What if you talk, and from the stress of the moment make mistakes in your answers, and then cannot remember the conversation? How do you ensure what was said is ... Read More
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