Blog Archives - Page 22 of 51

5 Strategies to Resolve Tax Debt with the IRS

May 25, 2026October 1, 2020 by Brotman Law

Tax attorney consultation at Brotman Law

Key Takeaways

Keep in mind what the result is that you are seeking and try to steer the representative toward giving you that resolution.
Why put yourself through such misery.
Second, repeat the resolution back to the agent to make sure your understanding of the resolution is confirmed.

Dealing with the IRS is a royal pain, regardless of how much or how little you owe. If dealing with the IRS Automated Collection System (ACS) is making you pull your hair out, here are five strategies that you can use on your own to get through. The good news is that these techniques are simple and do not cost anything. All it takes is a little planning and a lot of patience.

What Are the Consequences of Running from the IRS?

May 25, 2026October 1, 2020 by Brotman Law

Key Takeaways

Having tax issues with the IRS is extremely stressful, regardless of how you landed there.
Faced with all of this, when the “fight or flight” response kicks in, many taxpayers decide to flee.
There are exceptions to this three-year rule.

Having tax issues with the IRS is extremely stressful, regardless of how you landed there. First, there is the crushing worry about the financial implications. Nobody likes being in substantial debt, especially, when it threatens your standard of living or the stability of your home or business.

Currently Non-Collectible Status

July 5, 2026July 17, 2020 by Brotman Law

Key Takeaways

Now, I want to talk to you about Currently Non-Collectible status.
Currently Non-Collectible status or as it’s called in the IRS system, it’s what’s called Code 53, the code that the IRS uses.
Currently Non-Collectible status is a temporary hardship status that’s granted from the IRS that frees people from the burden of paying their tax liabilities immediately.

Now, I want to talk to you about Currently Non-Collectible status. Currently Non-Collectible status or as it’s called in the IRS system, it’s what’s called Code 53, the code that the IRS uses. Currently Non-Collectible status is a temporary hardship status that’s granted from the IRS that frees people from the burden of paying their tax liabilities immediately. It’s like a ceasefire when you negotiate with the IRS. The IRS won’t take any collection activity. The taxpayer doesn’t have to pay any liability. This is usually temporary. It usually lasts for a period of about 18 months. When the IRS places a taxpayer in Currently Non-Collectible status, they will not designate a time that the Currently Non-Collectible status will expire. So, it’s an undefined period before a Currently Non-Collectible status expires. However, usually about the 18-24 month mark after Currently Non-Collectible status has been implemented the IRS will take a review of the account and often ask the taxpayer for updated financial information. Or if you’ve obtained a job, they’ll ask your current information on that. Or, they can ask for a variety of information. In addition, taxpayer should file tax returns showing large swings in income–If your client’s unemployed for a month or for a year, and the next year he gets a $150,000 job and file the tax return reflecting that–that will automatically kick some clients out on the Currently Non-Collectible status. Because of the temporary nature of the status, the IRS can make a determination and kick them out of it at anytime. With that said, it is a viable option for several reasons. Number One, Currently Non-Collectible status will toll the Statute of Limitations. It will cause the Statute of Limitations to keep running.

Frequently Asked Questions About the IRS Collections Process

May 25, 2026July 8, 2020 by Brotman Law

If I owe money to the IRS, how do they look at credit cards?

Key Takeaways

The IRS takes the position that they are not a bank, so if you owe tax debt they consider themselves to be the superior creditor. Anything that is an unsecured debt, including a credit card debt, the IRS considers itself to be more of a priority than that debt.
When negotiating an IRS payment plan, they will not allow you to write off your credit card expenses. This is a big shock for taxpayers because when going through income minus necessary expenses, a lot of people will list their credit card debt.
Just keep in mind that the credit card debt is not a saving grace. If you have a substantial amount of credit card debt and it is affecting your cash flow, you are going to want to speak with your attorney or qualified representative to help you.

An Overview of Federal Tax Matters

July 5, 2026July 8, 2020 by Brotman Law

Federal Tax Defense

The Different Steps in the IRS Collections Process

July 12, 2026July 8, 2020 by Brotman Law

For every stage in depth — notices, liens, levies, and the resolution options at each step — see the full collections guide.

There is a lot of confusion among many of my clients about the IRS collections process and what actions the IRS is able to legally take against the taxpayer. People who owe see a series of increasingly threatening letters and I often get panicked phone calls from taxpayers who think that the IRS is going to take their house because of the $5,000 balance they have accumulated.

Key Takeaways

There is a lot of confusion among many of my clients about the IRS collections process and what actions the IRS is able to legally take against the taxpayer.
To help soothe fears, I wanted to trace the lifecycle of a balance due to the IRS in order to better educate you on exactly how the IRS collections process works.
Generally, it takes approximately four weeks for the IRS to process a current tax return and eight weeks for the IRS to process a return for an older year. In some cases, however, there are a number of things that may cause a delay in a return being processed.

Strategies for the IRS Automated Collection System

July 5, 2026July 8, 2020 by Brotman Law

Automated Collection Systems

Key Takeaways

Many taxpayers get frustrated when dealing with the IRS Automated Collection System (ACS). After what can be some long wait times, taxpayers are sometimes presented with seemingly inflexible options for resolving their balance due to the IRS.
While I do appreciate the business from prospective clients, I am sympathetic to their financial difficulties and encourage them to at least try to resolve their own tax issues before turning to professional assistance.
One of my favorite sayings is that you “win more flies with honey than with vinegar.” No truer is that statement than in my experience dealing with the IRS Automated Collection System.

An Overview of Criminal Tax Matters

July 5, 2026July 2, 2020 by Brotman Law

Key Takeaways

If you believe that you are being investigated criminally by the IRS, you probably have a good sense as to why. Depending on how certain you are of this, you need to stop right now. You need to contact a criminal tax attorney to help you.
The IRS Criminal Investigation Division (CID) is exactly what it sounds like. It is the central investigative body charged with investigating and building cases against people who are charged with tax crimes.
The reality of the situation is the criminal investigation division is a very small but focused unit but with a very high conviction rate. Currently, when it comes to tax crimes, the U.S. Attorney’s Office has a 90 percent conviction rate.

The Complete Guide to IRS Penalties

July 5, 2026July 2, 2020 by Brotman Law

IRS Penalty Information

Key Takeaways

Total failure to file a tax return and pay all balances owed will result in the IRS charging an IRS penalty, which is usually “five percent of the tax owed for each month, or part of a month that your return is late, up to five months.
In addition, according to the Internal Revenue Manual, relief from IRS penalties falls under four categories, which include the following: 1) reasonable cause, 2) statutory exceptions, 3) administrative waivers, and 4) Correction of Service error (IRS.gov, “20.
An appeal may recommend abatement or non-assertion. When determining an IRS penalty, the IRS generally considers requests from third parties, “including requests from representatives without an authorized power of attorney.

The Complete Guide to IRS Interest Abatements

July 5, 2026July 2, 2020 by Brotman Law

IRS Interest Abatements

Key Takeaways

You are required to file a return if you have earned income in the previous year. You are also required to pay all tax by the due date to avoid IRS interest and penalty charges. The official due date to file and pay taxes is April 15.
All U.S. tax returns are checked for mathematical accuracy. In the event that you owe money to the IRS, you will be sent a bill.
For example, there is an IRS interest charge on the unpaid tax. Unpaid tax is determined by the balance due from the date of the return to the date of payment (“Topic 653”).