strategies-init Archives - Page 21 of 74

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

May 25, 2026October 7, 2020 by Brotman Law

Tax attorney consultation at 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 the Rules for an IRS Offer in Compromise

May 25, 2026October 7, 2020 by Brotman Law

An Offer in Compromise (OIC) is one repayment plan that you can negotiate with the IRS to reduce your tax debt. With an OIC, you are proposing paying a lesser amount to the IRS, based on your ability to pay. This is a good strategy, but bear in mind, that it is not an easy or comfortable process.

Key Takeaways

Salability of Assets
Current Assets: Cash and Cash Equivalents
Monthly Cash Flow
Income and Expense Table and Future Income
Future Income Potential

How the IRS Conducts Financial Analysis

May 25, 2026October 2, 2020 by Brotman Law

If you are trying to work with the IRS on an installment payment agreement of your tax debt, you may be wondering exactly how they determine who gets approved and who does not. It probably feels like, “which way is the wind blowing that day?”

Key Takeaways

If you are trying to work with the IRS on an installment payment agreement of your tax debt, you may be wondering exactly how they determine who gets approved and who does not. It probably feels like, “which way is the wind blowing that day.
Fortunately, the process is a little more objective than that. The IRS has a complex system of tables and guidelines that they use to determine what the standard of living is for your particular region.
The IRS will also look at your assets both personal and related to your business. There also is a little leeway for special circumstances, such as additional expenses you need to take care of your family or run your business.

How to Navigate IRS Collections Forms

May 25, 2026October 2, 2020 by Brotman Law

One reason why people get so frustrated with the IRS is because the IRS makes it so onerous to do business with them. There are forms and forms on top of forms, then there are schedules and more documentation and paperwork. There are also pages and pages of instructions, printed in the smallest type possible, which are equally challenging, especially if you are a novice in interpreting IRS guidelines.

Key Takeaways

One reason why people get so frustrated with the IRS is because the IRS makes it so onerous to do business with them. There are forms and forms on top of forms, then there are schedules and more documentation and paperwork.
It is no wonder that so many taxpayers just give up all together and just end up paying the entire debt (with penalties and interest) by using credit cards and high-interest loans, or burying their head in the sand. Neither is the best solution.
Naturally, this is the case if you wish to initiate an installment agreement to repay your debt to the IRS. Before you throw your hands up in despair, keep reading. We are going to explain the main forms you need to apply for an IRS installment agreement.

5 Strategies to Resolve Tax Debt with the IRS

May 25, 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.

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.

Overview of the IRS Collections Process for Non-Tax Lawyers – Introduction

May 25, 2026July 17, 2020 by Brotman Law

Good morning. I’m Sam Brotman with Brotman Law here to give you an overview of the IRS collection process for non-tax lawyers. I have a running joke with a lot of my family law attorney colleagues that I’m often the most popular person in their divorce cases. And the reason for that is because I’m solving a very, very complex issue that oftentimes the sides can’t agree on and most everybody hates their own lawyers. So, as a general frame of reference, what we do as tax people is solve really particularly nasty problems that most people just don’t want to deal with. But my goal here today is to give you an overview of the IRS collection process because it causes a lot of fear for people’s clients and to better inform you on how collections work within the IRS to dispel some of the myths and some of the preconceive stereotypes that you may have about how the IRS tends to operate. As part of the presentation, what I will be covering today is kind of a general overview on how to tax returns are filed and how balance dues occur within the IRS systems.

Key Takeaways

Good morning. I’m Sam Brotman with Brotman Law here to give you an overview of the IRS collection process for non-tax lawyers. I have a running joke with a lot of my family law attorney colleagues that I’m often the most popular person in their divorce cases.
From there, we’re going to talk about the Automated Collection Systems process or ACS. After that, I will cover what revenue officer does, who these people are, what their job functions are and how they operate within IRS collections.
Tax is an area of law that is highly specialized. It is one that touches multiple areas of law. In my experience as a tax attorney, we have touched family court litigations; we have touched probate law litigations, state planning.

Who is Afraid of the Big Bad Wolf? – About the IRS

July 5, 2026July 17, 2020 by Brotman Law

So now I want to talk a little bit about the IRS itself. The IRS itself, what I commonly say about the IRS is, “Who is afraid of the big bad wolf?” It’s the IRS has mystique about them. They are viewed as this big albatross of a government agency with unlimited power and they have the ability to put people in jail or take their houses away or any number of really negative nasty connotations. This culture of fear surrounding the IRS has been perpetuated number one, by the tax resolution industry which tries to use fear marketing to target clients and then the other really by the IRS itself. In actuality, the IRS is a small organization that has very limited resources and relies on putting fear in the people to motivate them to action. The IRS is trying to solve the problem about $85 billion tax gap. And that tax gap is a result of people either not filing returns or not paying what they owe.

Key Takeaways

So now I want to talk a little bit about the IRS itself. The IRS itself, what I commonly say about the IRS is, “Who is afraid of the big bad wolf?” It’s the IRS has mystique about them.
In order to help close the tax gap, the IRS has built a little bit of fear surrounding audits and surrounding collection activities, trying to motivate people to take action to solve their tax problems.
Some of them are statutory. A lot of them can be found in the internal revenue manual which is the governing document for IRS collection officers and examination personnel. That is a very useful tool, although very technical.

What Causes a Balance Due

July 5, 2026July 17, 2020 by Brotman Law

One of the first things I want to talk about is what causes a balance due. Balance due is tax liability that is owed to the government. There are four basic ways that balance dues occur. The first is you file tax return showing a liability that’s owed to the government that is not paid. If a tax payer files a return, they owe $10,000. They don’t include the check with that. That will create a balance due within the IRS system. The second way that balance dues are formed is through the matching program that the IRS has. When the tax payer files a tax return not showing a tax liability but there are either errors or omissions on that tax return, then the IRS will make a correction. Oftentimes, the issue of the correction through which is called the CP2000 notice, tax payer will file a return.

Key Takeaways

One of the first things I want to talk about is what causes a balance due. Balance due is tax liability that is owed to the government. There are four basic ways that balance dues occur.
They’ll get a nice letter in the mail saying, “Hey, we noticed you left off some income. You didn’t report the 1099 that you had. You stated a credit that we don’t believe you’re entitled to.” Any number of things can cause a CP2000.

Substitute for Returns (SFR)

July 5, 2026July 17, 2020 by Brotman Law

The final way that balance dues are created is through what’s called substitute for return. When you have a case of a non-filer, if the taxpayer doesn’t file a return for a year and the IRS will see a way to income information for that taxpayer or any number of other third party data sources, then the IRS will create a return for the taxpayer. That’s what is known as substitute for return or SFR. If you’re calling the IRS and the IRS indicates the taxpayer has SFRs on file, that means the taxpayer didn’t file a return. Those SFRs can simply be corrected through a tax return and putting something on the IRS system with the SFR liability. Generally, the statute for any changes through examination is three years with some exceptions. There’s exceptions for fraud which can extend the statue up for six. And there’s also an exception for SFRs. Any time a taxpayer does not file a return, the IRS can technically go back and file a return on their behalf.

Key Takeaways

The final way that balance dues are created is through what’s called substitute for return.
In reality, the IRS is governed on SFRs to IRM 412.1.3. 412.1.3 says that as general policy consideration, the IRS will usually limit SFR filings for the past six years. There’s a couple of factors that play into whether the IRS will file an SFR or not.
And she’s been the beneficiary of the trust for since about mid-80’s and she has failed to file her returns for since the mid-80’s going forward.