Tax Resolution Advice and Assistance by Former Revenue Officer

If you do not find the solution to your tax problems among those listed below, contact us to receive a Free Initial Tax Consultation with our Tax Resolution Advice Specialist.

An IRS Audit is a review of an organization or individual's accounts and financial information.

Another way to look at an IRS audit (or as the IRS calls it: Examination) is as a discussion and review of the individual's or businesses financial situation to ensure taxpayers are complying with the tax laws and reporting a substantially correct amount of tax.

Learn how to protect your Taxpayer Rights while presenting the strongest argument during an IRS Examination.

Generally, the IRS can include returns filed within the last three years in an audit. Additional years can be added if a substantial error is identified. Generally, if a substantial error is identified, the IRS will not go back more than the last six years.

The IRS tries to audit tax returns as soon as possible after they are filed. Accordingly most audits will be of returns filed within the last two years.

If an audit is for an older year, you may be requested to extend the statute of limitations for assessment of your tax return. The statute of limitations limits the time allowed to assess additional tax. The statute of limitations is generally three years after a return is due or was filed, whichever is later.

If the audit is not resolved and the statute of limitations date is nearing, you may be asked to extend the statute of limitations date. This will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the audit results, or to claim a tax refund or credit. It also allows the IRS time to complete the audit and provides time to process the audit results.

You do not have to agree to extend the statute of limitations date. However, if you do not agree, the examiner will be forced to make a determination based upon the information they currently have. Therefore, the examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.

You have been selected for a CP 2000 Audit or a substitute for Return Inquiry. The results of either IRS Audits can lead to a vast increase in taxes owes. The increased tax due are sometimes caused by rushed examination by the IRS who are under pressure to close a case as quickly as possible.

When you get this big tax bill, what are your options? Maybe your best solution is an audit reconsideration which could bring a fair and equitable resolution to this perplexing problem.

There are times when your life gets turned upside down because of an IRS Enforcement Action. You get a call from your bank that your checking account is frozen, and the proceeds will be turned over to the IRS. Time is of the essence.

With 34 Years plus of IRS Employment experience, I can help navigate the bureaucratic nightmares and provide you with a release of the levy within 24-Hours during normal business days. In addition, I will advise you with the best tax resolution options which fit your unique financial situation.

If you are considering filing personal bankruptcy it is always good practice to retain the services of an experienced bankruptcy attorney. But prior to a bankruptcy decision, you may need to know if your personal 1040 income taxes can be dischargeable.

We can help by providing a Tax Transcript analysis of your Tax Delinquent Accounts. We will identify and advise which of your back taxes are potentially dischargeable.

If you choose to go through this CAP process then you cannot go to Court on the Appeals' decision.

CAP procedures are available to you if you've received any one of the following notices:

Call the IRS telephone number shown on your notice
Explain why you disagree and that you want to appeal the decision
Be prepared to offer a solution
Before you can come to Appeals you will need to first discuss your case with a Collections manager.

Call the Revenue Office you've been dealing with
Explain why you disagree and that you want to appeal the decision
Be prepared to offer a solution
Before you can come to Appeals you will need to discuss your case with a Collections manager.
Complete Form 9423, Collection Appeals Request
You have 2 days from your conference with the Collections manager to submit Form 9423 to the Revenue Officer.

The IRS cannot levy with just this notice. They must first issue a formal Notice of Intent to Levy, and that is the next step after this notice. You should therefore call the number on the notice to discuss this situation and your payment options.

Your case is closed as far as any determination about how much you owe. So, there is nothing for you to appeal at this point. However, you do have three options to get your case re-opened so the IRS can consider whether you owe any additional amounts:

Pay the amount due in full and file a claim for refund. If the IRS disallows your claim you will have the right to appeal at that time.
Follow the instructions in Publication 3598 and request an Audit Reconsideration. Note that you must submit new information the IRS did not previously consider in order to have an audit reconsideration.
Follow the instructions in Form 656 and file an Offer in Compromise, Doubt as to liability.

If you are a victim of this current economic recessio, unable to pay your monthly necessary living expenses and your Tax Debt at the same time, you probably can qualify for deferring the payment of your past due tax debt by being placed in a currently not collectible status. Basically, your necessary living expenses equal or exceed from income.

You can document the facts of your economic hardship with the Form F.433-A which will verify your unfavorable financial situation. Include copies of your bills to verify and document the information contained on the F.433-A.

Many married taxpayers choose to file a joint tax return because of certain benefits this filing status allows. Both taxpayers are jointly and severally liable for the tax and any additions to tax, interest, or penalties that arise as a result of the joint return, even if they later divorce.

Joint and several liability means that each taxpayer is legally responsible for the entire liability. Thus, both spouses are generally held responsible for all the tax due even if one spouse earned all the income or claimed improper deductions or credits. This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. In some cases, however, a spouse can get relief from joint and several liability.

There are three types of relief from joint and several liability for spouses who filed joint returns:

Innocent Spouse Relief provides you relief from additional tax you owe if your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits.
Separation of Liability Relief provides for the allocation of additional tax owed between you and your spouse or former spouse because an item was not reported properly on a joint return. The tax allocated to you is the amount for which you are responsible.
Equitable Relief may apply when you do not qualify for innocent spouse relief or separation of liability relief for something not reported properly on a joint return. You may also qualify for equitable relief if the correct amount of tax was reported on your joint return but the tax remains unpaid.

Note: You must request relief no later than 2 years after the date the IRS first attempted to collect the tax from you, regardless of the type of relief you are seeking. Not all IRS attempts to collect the tax from you will trigger the two year period for filing a request for relief.

The IRS issues a section 6330 notice to you. A section 6330 notice is a notice that tells you that the IRS intends to levy and that you have a right to a collection due process hearing;
The IRS applies your income tax refund against an amount you owed on a joint return for another year for which you seek relief and the IRS informed you about your right to file a Form 8857;
The filing of a suit by the United States against you for the collection of the joint tax liability;
The filing of a claim by the IRS in a court proceeding in which you were a party or the filing of a claim that involves your property.

Notice of Federal Tax Liens (NFTL) gives the IRS a legal claim to your property as security or payment for your tax debt. A Notice of Federal Tax Lien may be filed only after:

The IRS assesses the liability;
The IRS sends you a Notice and Demand for Payment - a bill that tells you how much you owe in taxes; and
You neglect or refuse to fully pay the debt within 10 days after we notify you about it.

Once these requirements are met, a lien is created for the amount of your tax debt. By filing notice of this lien, your creditors are publicly notified that we have a claim against all your property, including property you acquire after the lien is filed. This notice is used by courts to establish priority in certain situations, such as bankruptcy proceedings or sales of real estate.

The lien attaches to all your property (such as your house or car) and to all your rights to property (such as your accounts receivable, if you are a business).

For those who qualify: revocations, withdrawals, certificate of discharge, certificate of subordination, certificate of non-attachment, & appeals.

Within 30 days after you satisfy the tax due (including interest and other additions) by paying the debt or by having it adjusted, or
Within 30 days after we accept a bond that you submit, guaranteeing payment of the debt.

In addition, you must pay all fees that a state or other jurisdiction charges to file and release the lien. These fees will be added to the amount you owe.

Usually 10 years after a tax is assessed, a lien releases automatically if the IRS had not filed it again. If the IRS knowingly or negligently does not release a Notice of Federal Tax Lien when it should be released, you may sue the federal government, but not IRS employees, for damages.

A favorite tool of reporters, the Freedom of Information Act (FOIA) Request has been the basis of many factual editorials and newspaper articles.

There are times when you need to clarify how your specific IRS Tax Determination decision was made.

We can help you obtain a Freedom of Information Act (FOIA) Request to identify any potential mistakes or other problems, if you are seeking appellate or other administrative relief. In complex tax situations, this FOIA information can potentially help support a taxpayer’s position in a tax controversy.

Taxpayers wishing to pay off a tax debt through an installment agreement, and owe:

• $25,000 or less in combined tax, penalties, and interest can use the Online Payment Agreement (OPA) or call the number on the bill or notice (have the bill or notice available, along with the social security number). A fill-in Request for Installment Agreement, Form 9465 (PDF), is available online that can be mailed to the address on the bill.

Note: If you recently filed your income tax return and owe but have NOT yet received a bill from the IRS, you can use the Online Payment Agreement to establish an installment agreement on current year returns. To determine the information needed to establish a pre-assessed installment agreement, refer to What Information Do I Need to Use OPA?

• More than $25,000 in combined tax, penalties, and interest may still qualify for an installment agreement, but a Collection Information Statement, Form 433-F, A, or B may need to be completed. Call the number on the bill or mail the Request for Installment Agreement, Form 9465 and Form 433-F, A, or B to the address on the bill.

You will receive a written notification telling you whether your terms for an installment agreement have been accepted or if they need to be modified.

What do I do if the IRS contacts me because of a tax issue that may have been created by an identity theft?

If you receive a notice or letter in the mail from the IRS that leads you to believe someone may have used your Social Security number fraudulently, please respond immediately to the name, address, and/or number printed on the IRS notice.

• States more than one tax return was filed for you, or
• Indicates you received wages from an employer unknown to you.

An identity thief might also use your Social Security number to file a tax return in order to receive a refund. If the thief files the tax return before you do, the IRS will believe you already filed and received your refund if eligible.

If your Social Security number is stolen, it may be used by another individual to get a job. That person’s employer would report income earned to the IRS using your Social Security number, making it appear that you did not report all of your income on your tax return.

If you have previously been in contact with the IRS and have not achieved a resolution, please contact the IRS Identity Protection Specialized Unit, toll-free at 1-800-908-4490 .

What do I do if I have not been contacted by IRS for a tax issue, but believe I am a victim of identity theft?

If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost/stolen purse or wallet, questionable credit card activity, credit report, or other activity, you need to provide the IRS with proof of your identity.

You should submit a copy, not the original documents, of your valid Federal or State issued identification, such as a social security card, driver's license, or passport, etc, along with a copy of a police report and/or a completed IRS Identity Theft Affidavit - Form 14039.

You may also contact the IRS Identity Protection Specialized Unit, toll-free
1-800-908-4490 for guidance.

Whether you call it an installment agreement, payment agreement, payment option or a payment plan, the idea is the same — you make payments on the tax you owe.

That sounds like a good deal, but you can save money by paying the full amount you owe as quickly as possible to minimize the interest and penalties you’ll be charged.

For those who cannot resolve their tax debt immediately, however, an installment agreement can be a reasonable payment option. Installment agreements allow for the full payment of the tax debt in smaller, more manageable amounts.

What happens when the Audit Results are unsatisfactory? What issues can be heard by the Office of IRS Appeals? How do you write a Protest?

You may either represent yourself or, with proper written authorization, have someone else represent you in your place. Your representative must be a person allowed to practice before the IRS, such as an attorney, certified public accountant, or enrolled agent.

What are your best options when faced with your own tax problems during an IRS Appeals Review?

With 34 Years plus of IRS Employment experience, Vic retired as an Appeals Settlement Officer. He can help you navigate the bureaucratic nightmares and provide you with the best tax resolution option which fits your Tax and Financial Situation.

The IRS takes very seriously the employer action of not paying Business Payroll Taxes which includes employee withheld Social Security & Medicare Taxes. Enforced Collection (Levy & Seizures) when initiated because of unpaid payroll taxes and unfiled payroll returns can have a devastating effect on your business.

Enforced Collection can include a levy on the assets of the business, including your accounts receivable, equipment, automobiles and the bank account.

The IRS can also close a business down for non-payment of payroll taxes. If the business is closed or files for bankruptcy protection, the IRS will look to the owner or partners of the business for collection of the penalties, interest, taxes and trust funds.

In the case of a corporation, the IRS will look to the person responsible or persons for paying the payroll taxes to collect the trust funds. This is known as the Trust Fund Recovery Penalty.

What are your best options when faced with your own unique daunting tax problems? Taxpayer confusion or fear in responding to IRS Notices may lead to greater tax due assessments which can sometimes be incorrect.

With 34 Years plus of IRS Employment experience, I can help navigate the bureaucratic nightmares and provide you with the best tax resolution options which fits your financial situation.

There are times when you only need a fresh start. IRS under the Internal Revenue Code (IRC) 7122 offers taxpayers an option to eliminate their tax debt for less than they owe. “Offer in Compromise” is one way for qualified taxpayers to resolve their tax problems by reducing their tax debt. IRC section 7122 authorizes the IRS Commissioner to compromise a taxpayer’s outstanding tax liabilities.

Qualifying for the Offer program can be confusing, troubling, and frustrating for taxpayers who have severe financial problems and can not afford to pay the back federal taxes that they owe. In accepted cases, the IRS is willing to settle based on a taxpayer’s problematic financial situation for an amount less than the tax owed. This partial tax debt forgiveness can provide taxpayers with a fresh start.

The Offer-in-Compromise Program is carefully scrutinized because there have been abuse problems in the past. There were attempts by taxpayers to game the system by misusing the Offer-in-Compromise Program. The IRS now fully reviews all Offers to the very last detail, and disqualifies altogether taxpayers who make improper representations.

During his 34 years employment with IRS Vic Morel, has learned well which IRS rules, regulations and guidelines he can use to help the delinquent taxpayers to solve their tax resolution problems and reduce their tax obligation. His long employment with the IRS can help his client to Accept a good Offer-in-Compromise or Reject the one that is not to his benefit.

The IRS implemented an additional payment option, on January 17, 2005, known as the Partial Payment Installment Agreement (PPIA) for taxpayers who have outstanding unpaid federal tax liabilities. This new payment option became possible with the passage of the American Jobs Creation Act of 2004 signed into law on October 22, 2004. The new legislation includes language amending Internal Revenue Code 6159 to allow the IRS to enter into installment agreements that results in full or partial payment of the tax liability.

Prior to enactment of this legislation, taxpayers that could not fully pay their outstanding tax liabilities could only enter into an agreement with the IRS if it resulted in full payment of the liability. This left taxpayers unable to meet this criterion with limited payment options.

Taxpayers who are being considered for a PPIA must provide complete and accurate financial information that will be reviewed and verified. Taxpayers will also be required to address equity in assets that can be utilized to reduce or fully pay the amount of the outstanding liability.

In addition, taxpayers granted PPIA’s will be subject to a subsequent financial review every two years. As a result of this review, the amount of the installment payments could increase or the agreement could be terminated, if the taxpayer’s financial condition improves.

The PPIA payment option will provide an appropriate payment option for many taxpayers. Those who qualify for the PPIA option will be strongly encouraged to make their payments via the direct debit option.

Were you prevented from paying your taxes or timely filing your tax returns because of unforeseen circumstances that were based on reasonable causes? I may be able to help you. My experience can show you how to reduce the penalties and in rare cases reduce interest that IRS has added to your tax debt.

These mistakes that you may have made because of misinterpretation of the law, death, serious illness, or unavoidable absence may have a possible reasonable cause basis for abatement.

Requesting a penalty abatement requires a great deal of experience and knowledge to be successful. If you do not have the training and experience, you might lose the opportunity to reduce your tax penalties based on reasonable cause. My experience has taught me when and how to propose a penalty abatement request which would have a good chance of succeeding.

Most average taxpayers do not have any idea how many penalties the IRS has for failure to comply with filing, paying, and reporting requirements. The IRS assesses million of dollars of penalties each working day. Some penalties are made in pre-assessment, post assessment, & post payment periods.

Many of these penalties may receive a complete or partial removal or abatement of these IRS tax penalties owed by tax experts who know the criteria for non-assertion or abatement. I have seen cases where the IRS actually removed 100% of a penalty.

To receive penalty forgiveness, the IRS will require you to have a very sound and valid reason based on reasonable cause and other criteria for requesting consideration. But what qualifies as a valid and sound reason depends upon the facts and circumstances of your unique and particular situation. There have been cases where previously paid penalties have been reviewed by the IRS and then refunded. Even if you’ve had reasonable cause for not paying your taxes, it can be difficult to get tax penalties removed without the help of an experienced Tax Professional.

IRS Enforcement actions have increased. The IRS conducts several different types of property sales.

For sales of seized property conducted under IRC sections 6335 and 6336 the following applies. The IRS will post a public notice of a pending sale, usually in local newspapers or flyers. They will deliver the original notice of sale to you, or send it to you by certified mail.

After placing the notice, the IRS must wait at least ten days before conducting the sale, unless the property is perishable, and must be sold immediately.

Before the sale, they will compute a minimum bid price. This bid is usually 80% or more of the forced sale value of the property, after subtracting any liens.

If you disagree with the Fair Market Value or forced sale value, you can appeal it; and ask that the price be computed again by either an IRS or private appraiser.

You may also ask that we sell the seized property within 60 days. For information about how to do so, call the IRS employee who made the seizure. The IRS will grant your request, unless it is in the government's best interest to keep the property. They will send you a letter telling you of their decision about your request. After the sale, IRS first uses the proceeds to pay the expenses of the levy and sale. Then we use any remaining amount to pay the tax bill.

This information was referenced from the IRS Website at IRS.GOV. If you have any other further questions, please access the IRS Website @ www.irs.gov for more details

The first step of the Tax Resolution Ad vive Service to help clients is the most important. After the initial consultation and subsequent engagement, we request Tax Transcripts from the IRS for our clients.

By doing so we not only find out what information IRS has on our new client, we also identify the root cause of the client’s tax problems. Upon analyzing the tax transcripts, we come up with a clear Plan of Action needed to resolve client's IRS Tax Problems.

By identifying the best options for our client which we bring a resolution to a seemingly hopeless situation.

The IRS can pursue business owners and their employees seeking to impose personal liability for unpaid withholding taxes.

Internal Revenue Code Section 6672 authorizes the IRS to investigate individuals who while in business were part of the decision making process not to pay the IRS payroll taxes. The IRS can hold these individuals personally responsible. When the IRS conducts the Trust Fund Recovery Penalty (TFRP) Investigations, they concentrate on two key factors: Willfulness and Responsibility.

Employee tax withholding is a very attractive but extremely hazardous source of immediate operating funding. The IRS is definitely not in the loan business. Using one’s businesses’ payroll taxes to supplement your businesses’ cash flow raises a red flag to the IRS.

During a TFRP investigation, there are certain questions the Investigating IRS Revenue Officer may ask. The most common are:

The answers to these questions and other underlying facts and issues will determine your strategy for your TFRP Defense.

Filing a past due return may not be as difficult as you think. Taxpayers should file all tax returns that are due, regardless of whether or not full payment can be made with the return.

Depending on an individual’s circumstances, a taxpayer filing late may qualify for a payment plan. All payment plans require continued compliance with all filing and payment responsibilities after the plan is approved. However, full payment of taxes saves you money.

IRS Enforcement actions have increased over the last four years. A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.

If you do not pay your taxes (or make arrangements to settle your debt), the IRS may seize and sell any type of real or personal property that you own or have an interest in. For instance,

• The IRS could seize and sell property that you hold (such as your car, boat, or house), or

• They could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions).

• They assessed the tax and sent you a Notice and Demand for Payment;
• You neglected or refused to pay the tax; and
• We sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy. They may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested. Please note: if the IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.

You may ask an IRS manager to review your case, or you may request a Collection Due Process hearing with the Office of Appeals by filing a request for a Collection Due Process hearing with the IRS office listed on your notice. You must file your request within 30 days of the date on your notice. Some of the issues you may discuss include:

• You paid all you owed before we sent the levy notice,
• The IRS assessed the tax and sent the levy notice when you were in bankruptcy, and subject to the automatic stay during bankruptcy, • IRS made a procedural error in an assessment, • The time to collect the tax (called the statute of limitations) expired before we sent the levy notice,
• You did not have an opportunity to dispute the assessed liability, • You wish to discuss the collection options, or
• You wish to make a spousal defense.

At the conclusion of your hearing, the Office of Appeals will issue a determination. You will have 30 days after the determination date to bring a suit to contest the determination. Refer to Publication 1660, Collection Appeal Rights , for more information. If your property is levied or seized, contact the employee who took the action. You also may ask the manager to review your case. If the matter is still unresolved, the manager can explain your rights to appeal to the Office of Appeals.

If we levy your bank account, your bank must hold funds you have on deposit, up to the amount you owe, for 21 days. This holding period allows time to resolve any issues about account ownership. After 21 days, the bank must send the money plus interest, if it applies, to the IRS. To discuss your case, call the IRS employee whose name is shown on the Notice of Levy.

Tax Resolution Advice and Services