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The Current IRS Organization

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The IRS Restructuring and Reform Act of 1998 triggered a comprehensive reorganization of the IRS, which modernized the Service and made it closer to being run like a private sector organization. As such, the IRS organization is led by the Commissioner serving as the chief official, the Chief of Staff and the Deputy Chief of Staff in the executive leadership roles below, and a number of “specialized IRS units” that serve different functions. [1] Staff members from each of these multiple units report to the Commissioner within the IRS Organization. Here is a list of the specialized units within the IRS Organization that report directly to the Commissioner. [2]

Key Takeaways

  • The IRS Restructuring and Reform Act of 1998 triggered a comprehensive reorganization of the IRS, which modernized the Service and made it closer to being run like a private sector organization.
  • Perhaps of most interest within the IRS organization from a tax resolution standpoint is the Services and Enforcement Unit.
  • Another key official within the IRS organization is the Deputy Commissioner for Operations Support, who also reports directly to the Commissioner.

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Tax Lawyers: Selecting Representation – Part One

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Choosing a professional representative is an important decision when dealing with a tax or other legal matter. Usually when you bring in a tax lawyer to handle your matter, you are dealing with an issue that is fairly serious. As such, it is important that you choose a tax lawyer that you feel comfortable with and that you trust with your personal financial information. Although naturally I would recommend myself for any tax matter listed on this website, I wanted to provide some helpful things to think about when choosing from the many tax lawyers that practice in your jurisdiction. Following these helpful hints will ensure that you pick a good one.

Key Takeaways

  • Choosing a professional representative is an important decision when dealing with a tax or other legal matter. Usually when you bring in a tax lawyer to handle your matter, you are dealing with an issue that is fairly serious.
  • Regardless of any other qualification of your tax lawyer, you want to ensure that the person you choose is someone that you can maintain a good working relationship with.
  • Tax lawyers are like any other profession. We get good and are more skilled at the things that we handle on a daily basis or that we have had significant experience handling in the past.

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IRS Tax Lien Release – Part Three – Release and Subordination

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Continued from IRS Tax Lien Release – Part Two – Lien Withdrawal

Key Takeaways

  • Second to getting the IRS to withdraw the lien entirely, you want to make sure that you get a tax lien release from the IRS. A tax lien release will still appear on a taxpayer’s credit, but the lien will be shown as paid and not have as adverse an effect.
  • Finally, it the IRS will not agree to tax lien withdrawal or tax lien release entirely, a lien subordination is a third option for dealing with an IRS lien.
  • In conclusion, IRS tax liens are problematic for taxpayers and are best dealt with sooner rather than later. That said, if a lien has been placed on your property there are a number of options for resolving the issue.

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IRS Tax Lien Release – Part Two – Lien Withdrawal

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Continued from IRS Tax Lien Release – Part One – Avoiding a Lien

Key Takeaways

  • Once the IRS tax lien is in place, it generally will not release it unless the balance owed is paid in full or there is another justification for removing it (such as it was filed erroneously or is for a year that is no longer subject to collections).
  • Lien withdrawal is one remedy that taxpayers can seek from the IRS. If possible, you want to try to get liens withdrawn than simply released or subordinated.
  • Additionally, taxpayers can get a lien withdrawn after the fact by entering into a direct debit installment agreement with the IRS.

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IRS Tax Lien Release – Part One – Avoiding a Lien

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Introduction to IRS Tax Lien Release

One of the biggest debates in the tax practitioner community is the efficacy of IRS tax liens. On one hand, IRS tax liens help the government protect its interest in a taxpayer’s property and secure the underlying tax obligation with real or tangible personal property. On the other hand, liens damage a taxpayer’s credit, place an obstacle in the way of the taxpayer selling that property or borrowing against it in order to pay off their liability, and generally do nothing to satisfy the immediate concern of the IRS. Furthermore, it is extremely difficult to get a lien release and liens are a noted hassle to dispose of once they have been filed against a taxpayer. However, there are a number of things that the taxpayer can do if they are affected by a federal tax lien in order to secure a lien release or achieve some other workable solution that allows them to make progress on the account. After all, the IRS is simply seeking a workable resolution to the problem.

Key Takeaways

  • One of the biggest debates in the tax practitioner community is the efficacy of IRS tax liens.
  • First of all, although it may go without saying, the easiest way to not have to worry about federal tax liens is to not get them in the first place. Being compliant with your federal tax obligations is a one hundred percent guaranteed way to avoid a tax lien.
  • Along those lines, the IRS generally does not go through the trouble of placing a lien on taxpayers who owe smaller liabilities.

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Tax Payment Plan Criteria: How to Get Approved

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Introduction to Tax Payment Plans

When an individual cannot pay the full balance owed to the IRS, one of the most common solutions is to get that taxpayer set up on a tax payment plan. However, payment plans are not a matter of right, and taxpayers must meet several requirements in order to get their tax payment plan approved. It is important that to be aware of these criteria, as making sure you have met all of the requirements in advance will help expedite the approval of your IRS payment plan.

Key Takeaways

  • First, the IRS does not prefer that taxpayers finance their tax obligations.
  • These time frames can also vary based on the size of your liability.
  • Furthermore, the IRS will require that the taxpayer is up to date on all current year payments and has filed all outstanding returns.

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Penalty Abatements: Reasonable Cause Factors – Part Three

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Penalty Abatement Reasonable Cause 3

Tax penalty abatement

Key Takeaways

  • Barring anything outside of these two factors, the IRS is unlikely to consider your rationale behind an undue hardship sufficient.
  • One other thing that is important to note, is that undue hardship generally constitutes an appropriate rationale where items were tied to a failure to pay.
  • According to the IRS, financial detriments generally do not impact the taxpayer’s ability to file. However, I have been personally successful in releasing penalties associated for a failure to file because of an economic hardship.

Continuing my series on Tax Penalty Abatements. Click Here to read Part Two

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The BLT Mindset: Where’s the Bacon? (Or Why Lawyers Should Go to B-School)

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Overview Of Irs Audits Banner

Let me tell you a quick story. When I was a second year law student, I had an idea about how to provide the perfect tax return by combining the expertise of a CPA and a lawyer to tackle the preparation process. I had my million-dollar idea! So I sat on my couch with my laptop and said, “Ok, time to make this work.” And then I came to the realization that I did not know the first thing about what it took to run a business or where to start. And then I came to another realization that, if I did not know the first thing about running a business, what made me qualified to give people legal and tax advice about how to run their business. I could not answer that, so I went to business school.

Key Takeaways

  • Let me tell you a quick story. When I was a second year law student, I had an idea about how to provide the perfect tax return by combining the expertise of a CPA and a lawyer to tackle the preparation process. I had my million-dollar idea.
  • I am not saying that getting an MBA is a necessity for corporate/tax lawyers. You do your job long enough and you naturally pick up the tools you need to make you a successful attorney.
  • This business, law, and tax sandwich is my way of illustrating this approach to you, one that I feel is necessary to really solving problems.

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Tax Levies and Property Exempt IRS Levy

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Introduction to Tax Levies

The IRS can be fairly aggressive when it comes to adverse collection action. The IRS uses certain tactics to usher taxpayer compliance and to reduce the size of balances that are owed on taxpayer accounts. Tax levies are one of these collection tactics. The general rule with tax levies is that the IRS can levy all property that belongs to the taxpayer in order to satisfy the outstanding obligation. However, certain property is exempt from an IRS levy and cannot be seized by the IRS.[1]

Key Takeaways

  • The IRS can be fairly aggressive when it comes to adverse collection action. The IRS uses certain tactics to usher taxpayer compliance and to reduce the size of balances that are owed on taxpayer accounts. Tax levies are one of these collection tactics.
  • This list of property is codified under Internal Revenue Code (IRC) § 6334.
  • 2. Personal items, personal care items, fuel, furniture, and personal effects.

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Brotman Law Featured in Inc. Magazine - Fastest Growing Law Firm in California