IRS Collections Archives

Installment Agreements and the IRS: Settling Your Debt

April 23, 2026April 29, 2022 by Brotman Law

Key Takeaways

Aside from the possible late filing fee, there are penalty fees for late payment. They are charged at ½ of 1% of your unpaid tax balance.
Under the Fresh Start Initiative, if you owe less than $50,000 total in back taxes, penalties, and fees you should qualify for a 72-month Installment agreement without needing to undergo an in-depth financial disclosure.
If you owe more than $50,000 total in back taxes, penalties, and fees, or if you will need more than 72 months to clear your balance, you will need to submit a detailed financial statement with your application.

In an ideal world, everyone would be able to pay their taxes in full and on time, but sometimes it just isn’t possible. If difficult circumstances mean that you are coming up short during a tax season, it is probably the source of a lot of stress and anxiety.

The instinct to avoid the issue may be strong, but it can cause your problems to multiply exponentially. Interest, penalties, and other severe consequences can begin to build up. The most important thing for anyone struggling with their taxes to know is:

the IRS can usually work with you, but only if you work with them, and
calling a tax attorney is often a better idea than seeking out the advice of your CPA.

IRS Offer in Compromise: What to Do When They Are Rejected – Part Two

April 23, 2026January 14, 2022 by Brotman Law

IRS Offer in Compromise: What to Do When They Are Rejected – Part One

April 23, 2026January 12, 2022 by Brotman Law

IRS Offer in Compromise Appeals – Introduction

As a refresher to the reader, an IRS offer in compromise is a tax settlement with the IRS where the taxpayer agrees to pay a specified sum and the IRS agrees to compromise on the remaining liability.

Key Takeaways

IRS Offer in Compromise Appeals – Introduction
IRS Offer in Compromise Appeals – First Steps
IRS Offer in Compromise Appeals – Last Chances at the Offer Specialist Level

Many people have seen the various national tax agencies on daytime television offering to settle your tax debt for pennies on the dollar. However, what is left out of their sales pitch is that nearly eighty percent of IRS offer in compromises are rejected for a variety of reasons. This is not entirely a bad thing, but requires some strategic planning on the part of the taxpayer.

How to Work with Brotman Law on Your IRS Collections Case

April 23, 2026December 3, 2021 by Brotman Law

Key Takeaways

The biblical tale of David and Goliath is certainly inspiring and does much to instill the belief that you can overcome any opponent, no matter how much they out-size, out-weigh or out-spend you.
Unfortunately, this is not a fair comparison to use for someone going nose-to-nose with the IRS.
I am not saying that you should just roll over and play dead if the IRS informs you that you owe taxes with penalties and interest tacked on.

The biblical tale of David and Goliath is certainly inspiring and does much to instill the belief that you can overcome any opponent, no matter how much they out-size, out-weigh or out-spend you.

Unfortunately, this is not a fair comparison to use for someone going nose-to-nose with the IRS.

How to Get Free Taxpayer Assistance

April 23, 2026November 3, 2021 by Brotman Law

It is my firmly held belief that everyone should have access to good, top quality legal representation. However, even by charging the absolute minimum that I can for legal services, there are some taxpayers for whom even my services are too costly.

Although I take on and handle a significant amount of pro bono projects during the course of the year, I wanted to provide more information for those looking to get free taxpayer assistance and the ways to go about getting assistance. You can get help through a number of avenues, either through the Internal Revenue Service or other third parties.

How Long Does the IRS Have to Collect on an IRS Balance Due?

April 23, 2026September 24, 2021 by Brotman Law

The IRS cannot chase you forever and, due to the 1998 IRS Reform and Restructuring act, taxpayers have a little relief from the IRS collections division’s pursuit of an IRS balance due.

Key Takeaways

The IRS cannot chase you forever and, due to the 1998 IRS Reform and Restructuring act, taxpayers have a little relief from the IRS collections division’s pursuit of an IRS balance due.
Generally, under IRC § 6502, the IRS will have ten years to collect a liability from the date of assessment. After this ten-year period or statute of limitations has expired, the IRS can no longer try and collect on an IRS balance due.
However, there are several things to note about this ten-year rule.

Generally, under IRC § 6502, the IRS will have ten years to collect a liability from the date of assessment. After this ten-year period or statute of limitations has expired, the IRS can no longer try and collect on an IRS balance due.

However, there are several things to note about this ten-year rule. First and foremost, the statute is carefully crafted to read: ten years from the date of assessment. The assessment date is April 15th of the year that the taxes were due or the date the return was actually filed, whichever occurs later.

This means several things. First, there’s no way to reduce the IRS’s statute of limitations by filing your return before April 15th. Second, there’s a pretty severe penalty for late filing in that the ten-year period does not kick in until you actually file your return. Failing to file a return or attempting to hide from the IRS does not relieve you from liability.

Finally, the assessment date can change if you file an amended return or if the IRS has filed a substitute return on your behalf and you file a return to correct it. In addition, if you tried to conceal income or have filed a fraudulent income tax return, the statute of limitations does not apply on trying to collect on an IRS balance due.

The Consequences of Running from the IRS

April 23, 2026July 7, 2021 by Brotman Law

The consequences of running from the IRS are specific to federal tax laws that govern the ability of the agency to pursue and recover tax funds as well as those tax laws that govern your response to notices of tax deficiency.

Key Takeaways

The consequences of running from the IRS are specific to federal tax laws that govern the ability of the agency to pursue and recover tax funds as well as those tax laws that govern your response to notices of tax deficiency.
It is important to understand that the statute of limitations for taxes never runs out.
There are exceptions to this three-year rule. If you substantially understate your income, then the statute runs six years.

Learn How to Beat the IRS with the Tax Master Class

April 23, 2026May 17, 2021 by Brotman Law

The first “Tax Master Class,” masterminded and hosted by Sam Brotman, took place on Thursday, April 29, 2021. Due to the current COVID-19 climate, the event was on Zoom, but for those who missed it, a recording will be made available.

Key Takeaways

The Business of Taxes
And Then Something Clicked
The Tax Gap and the One-Trick Pony
Doing The Math
Make A Tax Action Plan

Brotman’s message was aimed at business owners owing more than $100K in taxes. Although the IRS is systematic he warned that with its new influx of money and pressure from the U.S. Treasury to fill the widening $441 billion tax gap, it is far less likely to let the “big whales,“ slip through their nets .

With his many successful years of defending clients against the IRS and the state of California, Brotman decided to put on a seminar about alleviating tax debt, in a sense, performing a much needed, long-form, free public service announcement.

Using his interest in high-stakes poker as a stage, he conveyed that dealing with the IRS is not a game of luck or chance, it’s a game of skill. In this way, his “Tax Master Class,” offers learning the edge to beating the IRS at their own game.

What Are IRS Allowable Living Expenses? [Definition & Classifications]

April 23, 2026May 3, 2021 by Brotman Law

Although a favorite saying of IRS revenue officers is that “The IRS is not a bank” and takes collection of taxes owed seriously, the IRS is prevented from collecting assets that a person needs to survive and meet their basic living requirements.

Key Takeaways

Although a favorite saying of IRS revenue officers is that “The IRS is not a bank” and takes collection of taxes owed seriously, the IRS is prevented from collecting assets that a person needs to survive and meet their basic living requirements.
The IRS calls these “Allowable Living Expenses” and they are excluded from the calculation that collection agents use to determine a taxpayer’s reasonable collection potential.
If you are applying for an offer in compromise or other repayment plan with the IRS, they are going to make you justify your living expenses. How do you do that.

IRS Prioritizes More Delinquent, High-Income Taxpayers

April 23, 2026March 24, 2021 by Brotman Law

Imagine yourself working as an IRS agent. Your department is in charge of identifying delinquent, high-income taxpayers who gross $200,000 or more per year in your state.

Key Takeaways

Imagine yourself working as an IRS agent. Your department is in charge of identifying delinquent, high-income taxpayers who gross $200,000 or more per year in your state.
Looking at a computer spreadsheet, you verify several names and socials of small business owners whose gross pay tops out at about $300,000 annually. Each taxpayer owes the government between $70,000 to a $150,000 in back taxes from 2016-2019.
On another spreadsheet, five very wealthy taxpayers who work in different fields are listed. Three out of five have c-level titles connected to large corporate subsidiaries, one is a best-selling author, and one owns a sports team.