strategies-init Archives - Page 45 of 74

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”).

The Complete Guide to IRS Levies

July 12, 2026July 2, 2020 by Brotman Law

A tax levy is the IRS actually taking property — wages, bank accounts, receivables — as opposed to a lien, which is the claim that secures the debt. Levies require a Final Notice 30 days in advance, and that notice window is where most levies get stopped.

By Sam Brotman, JD, LLM, MBA · Last updated July 2026

How to Deal With an IRS Bank Levy: Part One

Key Takeaways

When you owe a balance due to the IRS and fail to resolve that balance in a timely manner through one of the approved resolution methods, the IRS takes increasingly stern action to try and force compliance on your part.
An IRS levy is defined as, “a legal seizure of your property to satisfy a tax debt.
Sometimes this puts taxpayers in a precarious position because they count on funds being in these accounts that are no longer available due to the IRS levy.

Innocent Spouse Relief

July 5, 2026July 2, 2020 by Brotman Law

Key Takeaways

Because of certain benefits that filing jointly allows, many married taxpayers elect to file joint returns. However, filing a joint return carries the added burden of both parties being liable for the tax due.
From a practical standpoint, the IRS does not have the resources to make the determination on its own of who is an innocent spouse.
This is why when a married couple signs their tax return, both parties are attesting to the accuracy of the tax that is owed. As such, if the IRS finds an increase in the amount of tax that is owed, it holds both parties equally responsible for the increase.

The Truth About the IRS and Passport Revocation

July 5, 2026July 2, 2020 by Brotman Law

FAST Act Gives IRS Power to Revoke Passports for Tax Debt Over $50K

Key Takeaways

The recent passage of the FAST Act has some people worried about their ability to travel and live abroad because of their IRS liabilities.
As such, many Americans, both domestic and living abroad, are left wondering what the consequences of the new measure will be and how the government will enforce these new provisions.
Carve-outs in the law exist at the Secretary of State level for emergency situations or humanitarian objectives, but not for economic hardship or any other considerations.

The Complete Guide to IRS Tax Liens

July 5, 2026July 2, 2020 by Brotman Law

IRS Tax Lien Release – Part One: Avoiding a Lien

Key Takeaways

One of the biggest debates in the tax practitioner community is the efficacy of IRS tax liens.
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.
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.

All About California Self-Employment Tax

July 5, 2026July 2, 2020 by Brotman Law

When you work for someone else, your employer takes care of tax withholdings for you. When you work for yourself, you are responsible for the withholding and payment of these same taxes.

Key Takeaways

Defining Self-Employment
A Little About Taxing Agencies
Types of Businesses, Explained
The Ins and Outs of Paying Self-Employment Taxes
Estimated Tax Payments