strategies-init

IRS Interest Abatements

by

Introduction to IRS Interest Abatements

Any balance due that is owed to the IRS government will continue accrue interest on the amount of the outstanding tax obligation. The interest rate is generally pretty low in comparison with other types of debt,[1] but over time the amount of interest can add up and turn a small liability into a sizeable one. Unfortunately there is not too much to be done about your liability accruing interest and it is simply the cost of doing business with the IRS. However, there are certain mitigating circumstances where a taxpayer is able to do an IRS interest abatement in order to avoid the accrual of interest on some or all of the liability. When an IRS interest abatement occurs then the interest on a balance due can be abated altogether or just specific periods of time can be excluded from the interest calculation.

Read more

IRS Currently Non-Collectible Status

by

Introduction to IRS Currently Non-Collectible Status

There are many ways to resolve a tax liability. You can set up a payment plan[1], attempt to settle a tax debt with an offer in compromise, or pay the balance that you owe in full. However, there are some instances where any amount of money would create an unfair economic hardship on the taxpayer. As a result, the IRS created a temporary hardship status known as IRS currently non-collectible status. This may be also referred to by the IRS or by tax practitioners as “CNC status” or 53ing an account (the code the IRS enters into the account to place it in it IRS currently non-collectible status. By placing an account in IRS currently non-collectible status, the IRS essentially halts all attempts at collection activity on an account until it feels that the taxpayer is ready to make payments again. IRS currently non-collectible status generally lasts anywhere from six months to over two years.

Read more

Streamlined IRS Payment Plans

by

Introduction to Streamlined IRS Payment Plans

One of the ways that you can resolve a liability is with an IRS payment plan. The IRS generally accepts payment plans when the taxpayer does not have sufficient assets available to pay their liability in full. Payment plans are seen as a method of compromise by the Service that the taxpayer to avoid any adverse collection activity (assuming they remain true to the conditions of the payment plan) while paying down their liability to the government. However, IRS payment plans can be difficult to negotiate, in part because the IRS usually requires a complicated financial statement on the part of the taxpayer. A little known trick to taxpayers though is that you are sometimes able to set up a payment plan and it is virtually guaranteed to be accepted without having to undergo much of the financial disclosures generally required by the IRS. These are known as streamlined IRS installment agreements or streamlined IRS payment plans.

Read more

IRS Revenue Officers and Strategies for Dealing with Them – Part Five

by

IRS Revenue Officers Tip # 6 – Knowing When to Get Tough

This is one of the most difficult things for me to advise you on how to do properly and effectively. Experience and knowledge of tax procedure have seasoned me throughout the years on when is an appropriate time to get tough with your revenue officer. The fact of the matter is that some revenue officers will try to take advantage of your weakened position and, if you let them, they will walk all over you. Some will go on a fishing expedition by requesting a ridiculous amount of documentation to substantiate the positions on your financial statement or for them to conduct their investigation. Some will take a hard line position by insisting on good faith payment amounts or monthly installment payment amounts that are too difficult for the taxpayer to meet without them suffering financial hardship.

Read more

IRS Revenue Officers and Strategies for Dealing with Them – Part Four

by

IRS Revenue Officers Tip #5 – Manage Your Expectations

One of my favorite IRS revenue officer sayings is that “the IRS is not a bank.” I find this slightly humorous in light of how many people have outstanding tax liabilities, but it also is a key takeaway about the mindset in which revenue officers approach their cases. IRS revenue officers are tasked with achieving the best possible resolution for the government, which means having the taxpayer satisfy their liability as soon as possible and/or squeezing as much money out of the taxpayer over the long run as they can without putting the taxpayer in financial hardship. Do not think for a second that they are going to sway from this purpose. In addition, revenue officers have a manager look over and approve all resolutions before they become final. If they slack in their job, they will hear about it from their managers.

Read more

IRS Revenue Officers and Strategies for Dealing with Them – Part Three

by

IRS Revenue Officers Tip #3 – Get on the Revenue Officer’s Good Side by Making Life Easy For Them

Whatever your occupation, there are just some people that we encounter over the course of our chosen professions that make life difficult for us. They may turn in things that are substandard and require a lot of your time to make right. They may require constant follow up in order to get the things that you have asked for or miss appointments or deadlines without notifying you in advance. You may be one of these people to someone else, but absolutely do not be that person to your revenue officer. Getting on the revenue officer’s bad side is never a good thing. They will be generally less inclined to give you the resolution you are seeking and will make interactions with them more stressful and more difficult for you.

Read more

IRS Revenue Officers and Strategies for Dealing with Them – Part Two

by

IRS Revenue Officers Tip #1 – Be Aggressive in Getting Everything Ready BEFORE the Revenue Officer Gets Involved.

There are two things that an IRS revenue officer judges themselves on when it comes to their own job performance: how much money they can collect toward the satisfaction of the liability and how fast they can close a case out. From the taxpayer standpoint, the most important objective other than a successful resolution to your account is to get them out of your life as soon as possible. No one likes the IRS looking over their shoulder and the longer that they linger than the more opportunity exists for them to make your life miserable. So do not let them.

Read more

IRS Revenue Officers and Strategies for Dealing with Them – Part One

by

Introduction: About IRS Revenue Officers

IRS revenue officers are the most senior collections agents in the IRS.[1] IRS revenue officers handle those delinquent accounts that the IRS places the highest priority on, so much so that the government has assigned a local agent to specifically work the case in order to collect what is owed to the IRS. Generally, these individuals are highly trained and will incorporate an arsenal of tools and tactics in order to resolve the account in the favor of the IRS. They can retrieve third party records through summons, contact your employer, show up at your home or work, and seize a variety of assets (wages, accounts receivable, bank accounts, brokerage accounts, merchant accounts, etc…) in order to satisfy your tax liability. Having a revenue officer assigned to your collection account is a serious matter and it is important to take that person and their collection efforts seriously. Failure to do so may end you up on the bad side of the revenue officer and may make your life extremely difficult.

Read more

Strategies for the IRS Automated Collection System – Part Two

by

IRS Automated Collection System Strategy #3 – Do not be afraid to play the IRS Automated Collection System lottery

I can often tell from the first minute of the call with the Automated Collection System representative how things are going to go during the call. If the representative is rude or short with me during that first minute, often times I will hang up and call back to get another Automated Collection System representative (what I call affectionately the ACS lottery). There is zero point to spending an entire phone call arguing with someone, which will only frustrate you and is unlikely to lead to the result you are seeking. Why put yourself through such misery? Instead, if your representative if nasty or you get a bad feeling during the call, just bail. You may waste an hour waiting on hold in order to call them back, but you will be glad that you did when you get the result that you wanted.

Read more

Strategies for the IRS Automated Collection System – Part One

by

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. After reaching an impasse with ACS, they often resort to hiring professional help to resolve their tax problems. 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. In the spirit of trying to encourage this, I have put together a short list of some of my best strategies for dealing with ACS.

Read more

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