Negotiating with the IRS can be frustrating for the uninitiated. Intimidating. Overwhelming. Stressful. Not the best way to feel when entering into a negotiation, much less when the party on the other side has the power of the IRS. When I was an IRS trial attorney, I negotiated on behalf of the IRS. Since moving into private practice over 20 years ago, I have spent most waking moments of my professional career negotiating with them, rather than for them. And one thing is very clear: Negotiating with the IRS has its own unique, unstated rules of engagement. Here are a few tips I ... Read More
IRS installment agreements: Future compliance and steps to prevent default
You've made it - reached account resolution with the IRS by entering into an installment agreement to repay your taxes. You may have had to negotiate with a local IRS Revenue Officer, or over the phone with the IRS automated collection service. Maybe, you had minimal negotiations, made possible by qualifying for a streamlined installment agreement, which the IRS will automatically grant if you owe under $50,000 and can repay it in 72 months. Make your payment every month, and the IRS will leave you alone. But there are conditions to the installment agreement - it is not enough just to ... 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
Know the IRS warning signs of levy or seizure: IRS Letter 3174, New Warning of Enforcement
When working with an IRS Revenue Officer, there are two warning signs that levy action is imminent. The first sign is the IRS Final Notice of Intent to Levy. This notice is required by law (Internal Revenue Code 6331) and provides a 30 day right to stop levy action by filing an administrative appeal. The appeal puts resolution in the hands of an IRS settlement officer (as opposed to an IRS enforcement officer). This is known as a collection due process appeal because levy action cannot occur until you have exhausted your rights to review. And if you cannot reach resolution with a ... Read More
An IRS letter that you want to receive: Case Closed – Currently Not Collectible
There are many options to resolve an unpaid tax liability - you can agree with the IRS to make monthly installment payments, reach a settlement with an offer in compromise, eliminate the taxes in bankruptcy, or have the IRS place your account in currently not collectible status. Let's focus on currently not collectible. Currently not collectible status occurs when the IRS agrees that you cannot afford to repay the debt, and doing so would create an economic hardship on you. It is forbearance by the IRS, a break from enforcement that can last years. To obtain currently not collectible ... Read More