rs-irs-tax-debt-resolution Archives

What is an IRS Taxpayer Advocate?

April 23, 2026May 4, 2022 by Brotman Law

Key Takeaways

Secondly, when you have not received a response to your inquiries, you must have contacted the IRS at least two times before.
In terms of IRS notice problems, you must have responded at least two times to an IRS notice “requesting some IRS action.
The Taxpayer Advocate will not take your case if the problem cannot be solved by the IRS, if your case is under criminal investigation or if you are considered a tax protestor.

The IRS Taxpayer Advocate helps taxpayers resolve problems with the IRS and also recommends changes to help prevent problems in the future. The Taxpayer Advocate handles those issues when the tax problem is causing significant financial difficulty, when you or your business are facing immediate, adverse threat and when you have tried to contact the IRS repeatedly to no avail.

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.

Bankruptcy and Automatic Stay

April 23, 2026January 28, 2022 by Brotman Law

According to United States bankruptcy law, an automatic stay is defined as an automatic injunction, the purpose of which halts the actions of creditors to collect debts from a debtor who has filed for bankruptcy relief.

Key Takeaways

Provisions for automatic stay fall under section 362 of the U.S. Bankruptcy Code, which suggests that the stay begins automatically when the debtor files a petition with the bankruptcy court.
Although a stay is automatic, secured creditors may file a petition with the bankruptcy court for relief against the automatic stay if they can show cause.
The automatic stay protects the debtor against certain actions of the creditor which may include judicial proceedings, actions to obtain the debtor’s property, actions to enforce a lien against the debtor’s property, and set-off indebtedness.

Provisions for automatic stay fall under section 362 of the U.S. Bankruptcy Code, which suggests that the stay begins automatically when the debtor files a petition with the bankruptcy court.

Although a stay is automatic, secured creditors may file a petition with the bankruptcy court for relief against the automatic stay if they can show cause.

The Differences Between the Federal System and the State of California

April 23, 2026December 17, 2021 by Brotman Law

Key Takeaways

Internal Revenue Service
State of California
Representation You Can Count on

As a small business owner, you are used to dealing with the IRS and the state. You file income taxes with the IRS every year and file returns with the state when they are due. Paying tax is paying tax, right? So, why is there such a difference between the way the IRS plays versus the state?

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.

What Is the FAST Act?

April 23, 2026October 7, 2020 by Brotman Law

Tax attorney consultation at Brotman Law

Key Takeaways

If you owe the IRS $50,000 or more in back taxes, it is better to be proactive, then try to travel abroad or renew your passport and find out that you cannot.
What the Law Says: FAST Act Provisions Governing Passports
Title XXXII, Subtitle A, Section 32101 of the FAST Act gives the IRS the power to deny or revoke passports for taxpayers who have a “serious tax liability” of $50,000 by issuing notice to the Secretary of State’s office.
At the IRS level, carve-outs exist as well.

The IRS means business when it comes to recouping what is owed to them. Their latest strategy is implementation of the FAST Act. Simply put, if you owe more than $50,000 to the IRS, the IRS can seize your passport, thus prohibiting your ability to travel outside the U.S. This can be particularly problematic if you frequently travel overseas or have a residence in another country.

How to File an IRS Interest Abatement

April 23, 2026October 7, 2020 by Brotman Law

A common complaint I receive from many of my clients is that their IRS liability has increased substantially due to the penalties and interest that have been tacked on to the account (most of these clients are considering submitting an IRS penalty abatement).

Key Takeaways

A common complaint I receive from many of my clients is that their IRS liability has increased substantially due to the penalties and interest that have been tacked on to the account (most of these clients are considering submitting an IRS penalty abatement).
It does not seem fair, but not everything in life is fair, and it seems x1,000 when dealing with the IRS. If it helps, you can think of the IRS as just another business.
The IRS has a different structure with assessing interest and how much you pay depends on the amount due, how many years you are behind and the circumstances surrounding your delinquency.

What if I Cannot Pay the IRS? Currently Non-Collectible Status

April 23, 2026October 7, 2020 by Brotman Law

Key Takeaways

While the taxpayer is in not collectible status, the 10-year statute of limitations still applies within this context.
Taxpayers whose assets cannot be found are more likely to receive consideration for CNC.
Taxpayers must provide an outline of “allowable monthly expenses (expenses related to life, health, welfare, or the production of income)” (Hein).

When slapped with a staggering tax bill, very few people have the luxury of being able to pay the amount due in full. If that is you and you have exhausted all other repayment options, you might consider opting for Currently Non-Collectible Status (CNC). While this option is not for everybody, it can stall the collection process until you can come up with a solution to pay what you owe. We understand the frustration and embarrassment of being in this position and we can help. Keep reading to learn if you are eligible and if you have questions, feel free to give us a call.

What Are IRS Bank Levies? [Definition & Examples]

April 23, 2026October 2, 2020 by Brotman Law

When the IRS attaches a levy to your bank account, you know they mean business. In short, the IRS can seize your checking and savings accounts and use the funds to satisfy your tax debt.

Key Takeaways

When the IRS attaches a levy to your bank account, you know they mean business. In short, the IRS can seize your checking and savings accounts and use the funds to satisfy your tax debt.
When that happens you feel helpless. You are facing having literally no money to live on. You are in an impossible situation, or so it feels.
That is why I wrote this chapter. I am going to explain what an IRS bank levy is how the process works.

When that happens you feel helpless. You are facing having literally no money to live on. You are in an impossible situation, or so it feels.

5 Strategies to Resolve Tax Debt with the IRS

April 23, 2026October 1, 2020 by 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.