|
Do YOU or your client have a tax problem and need help now? Call (877) 829-8370 for a
|
An offer in compromise tolls (“freezes”) the IRS 10-year statute of limitations on collection (see Is the IRS 10-year statute of limitations for collection on hold while OIC is under consideration?) Items relating to a installment agreement (“IA”) such as the period an IA is under consideration if a hold on collection has been issued [...]
Health insurance premiums are allowable and should be included in both installment agreements and offers in compromise. As for the Affordable Care Act (“ACA”) penalties, I would include them and see if the IRS fights you on this. It remains to be seen whether they will allow the expense or not.
It is our preference to have a Revenue Officer handling a client’s case as opposed to automated collections. When possible we request that a client’s case be transferred to local Revenue Officer. We also ask for this when a client’s case has been assigned to a Revenue Officer that is not geographically desirable. What I [...]
Yes. In many instances the IRS representative (assuming the taxpayer is in automated collections) will take the information over the phone. In those instances it is not necessary but if they request that the form be faxed over or mailed in, a signature is required. And better be safe than cause delays in reaching a [...]
Yes, CNC status typically lasts up to 2 years at which time the IRS may ask for updated financials. Sometimes the time period is less and sometimes the IRS does not follow up. The latter is a rare occurrence.
Like any other type of tax return replacements for SFR’s are not automatically accepted but assuming they were prepared properly, you should not have any issues. These types of returns do not have to be “marked” in any special way but they should be mailed to the IRS SFR Unit and not the standard mailing [...]
To be safe, you should span more years than you think are necessary. For example if your client states they are unfiled or owe from 2006, you should begin earlier and span to at least a year past the current year. For example in this case you may put 2003 through 2016 on the form. [...]
There are various ways to do this. The best way without having actual invoices and statements is to recreate a client’s books from bank and credit card statements. In today’s technical age most of the transactions on these statements list the payee as well as the amount and date of transaction. In addition it is [...]
I do not think that advising your client to prepare only a portion of unfiled tax returns creates any additional exposure to you as a preparer. It certainly should not cause exposure to the IRS CI. The fact is that there is no statute of limitations for someone who has not filed. Would you consider [...]
To amend a return adds 240 ADDITIONAL days to the waiting period necessary to include tax liability in a bankruptcy so it would not make sense to amend a return for that reason. However, if your client had an IRS return audited and additional tax was assessed, you will probably want to amend the State [...]
If you are referring to the collection statute we instruct our clients not to sign a waiver. If you are talking about audit and not collections. Typically you do not have a lot of choice in the matter. If you do not extend the assessment period the IRS will disallow the deductions in question and [...]
This is a tough question to answer. You are an enrolled agent so you are trained to “know better”. That may be the real issue here. As you already know the ultimate responsibility is on the taxpayer. You should at the very least indicate in writing to the preparer and copy the client that you [...]
If the original tax amounts as well as the FINAL tax audit assessments have posted the taxpayer can proceed with the submission of an offer in compromise. This information can be discovered by obtaining the taxpayer’s most current tax account transcripts. The taxpayer does not need to wait for additional correspondences such as collection letters.
Effectively it is an audit re-consideration. You typically option the OIC doubt as to liability if all other appeal paths have been exhausted. For example if the 30 day and 90 day letters have been issued and the assessments are considered “final”. If this is not the case, a traditional audit reconsideration is the path [...]
If an audit becomes final including having exhausted all “official” channels of appeal; and the taxpayer failed to provide documentation supporting to either lower an assessment of tax liability or eliminate an assessment of tax liability (i.e. by providing proof of deductions or substantiating non-income deposits), the taxpayer may still have options. In many cases, [...]
These terms both refer to types of appeal. CAP stands for Collection Appeals Process and CDP stands for Collection Due Process.
Yes. See: If you submitted an appeal of an Offer In Compromise and it gets rejected where do you go?
Assuming your client’s offer in compromise was rejected by the IRS Offer Specialist assigned to their case, you have a few options as follows moving up the chain in seniority. You can appeal to the Specialist’s direct supervisor, the Group Manager. If you are unsuccessful you can request to argue your position to the Group [...]
Yes. The statute tolls (freezes) for the time the offer is under consideration plus 180 days plus 30 days for the rejection appeal period (IRM 5.1.19.3 (01-01-2006))
Effectively it is an audit re-consideration. You typically option the OIC doubt as to liability if all other appeal paths have been exhausted. For example if the 30 day and 90 day letters have been issued and the assessments are considered “final”. If this is not the case, a traditional audit reconsideration is the path [...]
If an audit becomes final including having exhausted all “official” channels of appeal; and the taxpayer failed to provide documentation supporting to either lower an assessment of tax liability or eliminate an assessment of tax liability (i.e. by providing proof of deductions or substantiating non-income deposits), the taxpayer may still have options. In many cases, [...]
It is impossible to guess at what motivates the IRS. They can appeal any ruling so it remains to be seen.
Assuming you are referring to the IRS, the statute of limitations for “active” collection is 10 years from the date of assessment. By “active” we mean the IRS will come after taxpayer directly. After 10 years the IRS cannot continue to do so but may, if previously filed continue to renew a tax lien on [...]
You can find the IRS National and Local Standards for all of the US on our Professional’s Portal at https://www.taxresolutioninstitute.org/forms-library/
