You want to repay the IRS, and have a number in mind of what you can afford monthly, but will the IRS accept it? Well, maybe. It all depends on how your monthly living expenses match up to IRS budgeting guidelines. The IRS calls these budgeting guidelines "allowable living expenses" (also referred to as "collection financial standards"). Allowable living expenses can be rigid, as the IRS has their own standards for your living expenses - they will need you to budget in an effort to increase the amount you can repay them. That's right: the IRS will not necessarily accept your ... Read More
Become fluent in the language of IRS collection agents
An IRS collection agent throws a word or phrase your way, and you have no idea what he is talking about. As they say, it is all Greek to you. And too much is at stake to bluff your way through it. A wrong move or misunderstanding could result in a levy on your bank account, wages, or seizure of assets. How can you negotiate yourself out of trouble with the IRS if you don't understand the language of IRS collection agents? To even the playing field, here are the 10 of the most important terms you should know when you owe back taxes to the IRS: 1. IRS Revenue Officer. This ... Read More
Why was my offer in compromise rejected by the IRS?
You just received a letter from the IRS notifying you that they are rejecting your offer in compromise. Enclosed with your letter are the IRS calculations, detailing why your offer was rejected. The IRS might as well be speaking a foreign language - what do all their calculations mean? And do you have a good reason to appeal the rejection? One reason the IRS rejects an offer in compromise is because they think that you can pay them in full from your future income. The IRS defines your future income as the amount you earn, less your necessary living expenses. The IRS has schedules of ... Read More
IRS offer in compromise asset valuation formula: houses, cars, household goods & bank accounts
You owe the IRS and would like to put past mistakes behind you and get a fresh start. You may have heard a lot about the IRS offer in compromise program - popularized by those deep-voiced TV and radio advertisements that makes it sound like you just call the IRS, offer a number, they say yes, and your done. Simple, right? The IRS offer in compromise program is legitimate, and it works, but it's not that simple. The IRS has a formula that they use in analyzing an offer in compromise. The IRS looks at two pools of money in an offer in compromise: (1) How much does the IRS think you can pay ... Read More
Dealing with the IRS Automated Collection Service? Know what to expect.
The IRS has two main sources of carrying out its work in collecting taxes: local Revenue Officers and its Automated Collection Service. When you get that call or letter from IRS collections, it's important to know who you are dealing with - and what to expect. The IRS Automated Collection Service - commonly known as "ACS" - is a series of IRS call centers staffed by IRS collection employees. You will never see or meet an ACS employee face-to-face; all of their work is conducted by telephone. And the vast majority of telephone work conducted by ACS is responding to inbound calls, not ... Read More