Yes. You have many options for challenging an IRS assessment. Two common procedures are the Collection Due Process (CDP) hearing and the Collections Appeal Program (CAP) hearing, depending on the circumstances. The CDP program gives you the right to appeal the filing of a Notice of Federal Tax Lien (IRC 6320) or the right to [...]
Yes. For the IRS, the procedure is known as an Audit Reconsideration Request (AR). The IRS has the discretionary authority to abate an assessment of any tax if it is in excess of your’s liability. Reasons for an AR include: you did not appear for the audit; you moved and did not receive the correspondence [...]
Yes. An in-business corporation can compromise its outstanding employment tax obligations with the IRS. In past years, the IRS required that an Offer in Compromise (OIC) from an in-business corporation include not only its ability to pay, but also, the amount the IRS could collect from the responsible parties through the Trust Fund Recovery Penalty [...]
Lately, we have seen local banks informing taxpayers that if a federal tax lien is filed, the bank cannot proceed with a refinancing of the taxpayer’s home because the bank’s underwriting department will not approve the loan. The existence of the tax lien is the only thing preventing the refinancing. This may be an anomaly. [...]
This is the tenth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations. Taking No Action. Some taxpayers have the option of taking no action to resolve their outstanding tax obligations with the Internal Revenue Service. The IRS has ten years [...]
This is the ninth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations. Innocent Spouse/Separation of Liability/Equitable Relief. IRC 6015. The tax liability on a joint return will often be the result of the conduct of just one of the spouses, [...]
This is the eighth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations. Offer in Compromise – Minnesota Department of Revenue. The starting point for an Offer to the Minnesota Department of Revenue is similar to the IRS. Determine the net [...]
This is the seventh post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations. Offer in Compromise – IRS. The IRS and the MDR have the authority to settle, or compromise, tax liabilities by accepting less than full payment under certain circumstances. [...]
This is the sixth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations. Installment Agreement – MDR Guidelines. The Department of Revenue states that it does not have specific payment plan guidelines. It determines the appropriateness of an installment plan for [...]
This is the fifth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations. Installment Agreement – IRS. The IRS has the option of accepting payments through an installment agreement if the installments will pay the tax in full, plus interest, within [...]