by steve | Feb 29, 2012 | IRS Tax Debt, Tax Help
Do not be afraid to ask the IRS to put your case into Hardship or a Currently Non Collectable Status.
As a former IRS Agent, 50% of the cases I worked, I had to write off as currently not collectible because the taxpayers simply had no money at the current time to pay the tax and for that matter, even make a small payment to the IRS. Most of these taxpayers were broke.
Since the case was in my inventory it had to be closed and put back into the system. Accounts are generally full paid, put in part pay status or placed in to a Hardship Status.
IRS does not advertise to the public that your case can be put into a current IRS hardship.
There are about 10 million cases right now in the IRS collection system that are deemed IRS tax hardships. They can stay in hardship for 1 year or stay there until the collection statute expires on the case. For more insight into how long cases stay in the closed computer system you can contact me directly.
So what is a IRS TAX HARDSHIP?
Many people have absolutely know idea that hardship or currently uncollectible exists. The truth of the matter is that most of our clients fall into the hardship rules.
Under the Internal Revenue Service IRS 5.16.1.2.9 (04-29-2011) explains the hardship provisions.
Hardship
Follow the procedures in IRM 5.15.1, Financial Analysis Handbook, to determine the correct resolution of the case based on the taxpayer’s assets and equity, income and expenses:
A hardship exists if a taxpayer is unable to pay reasonable basic living expenses.
The basis for a hardship determination is from information about the taxpayer’s financial condition provided on Form 433–A, Collection Information Statement for Wage Earners and Self-Employed Individuals or Form 433–B, Collection Information Statement for Businesses.
Generally, these cases involve no income or assets, no equity in assets or insufficient income to make any payment without causing hardship.
Generally, an account should not be reported as Currently Not Collectable if the taxpayer has income or equity in assets, and enforced collection of the income or assets would not cause hardship.
Other reasons for IRS hardships:
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The taxpayer has a terminal illness or excessive medical bills.
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The taxpayer is incarcerated.
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The taxpayer’s only source of income is social security, welfare, or unemployment.
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The taxpayer is unemployed with no source of income.
For accounts where the aggregate unpaid balance of assessments is above $10,000 the following additional verification is required:
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Full credit report on IMF and sole proprietor taxpayers and LLCs (where an individual owner is identified as the liable taxpayer)
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Motor vehicle records
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Real and personal property courthouse records.
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On-line locator services, such as Accurint, follow security guidelines when using public internet search engines
Should you think you qualify for hardship, call us today.
by steve | Feb 29, 2012 | IRS Tax Problem, Owe Payroll Taxes
IRS Trust Fund Penalty – IRS has the option NOT to ASSESS – Do not be bullied by the IRS, fight back by using the IRS IRM.
Most of the time a Revenue Officer will try to bully taxpayers and their representatives around by telling them they are going to set up the trust fund recovery penalty on a corporation in business and making there payment via a installment agreements.
The truth of the matter is, most of the Revenue Officers are not telling you the whole truth. There is a tax provision that the IRS can recommend. The service can recommend the non-assertion of the trust fund recovery penalty. You will never hear this from the local IRS. The local IRS only acts in there best interest.
Under IRS IRM 5.14.7:
http://www.irs.gov/irm/part5/irm_05-014-007.html
“In general, do not request assessment of Trust Fund Recovery Penalties if business taxpayers meet the terms of installment agreements.
If you are currently working with the IRS insist on the aforementioned manual section.
However, the trust fund recovery penalty must be considered on the potentially responsible persons of the business entity based on the following procedures.
1. If the agreement will not fully pay all balances due at least a year before the earliest Assessment Statute Expiration Date (ASED).
If this is the case the IRS Revenue Office will have to;
1. Assemble all documentation for completion of the penalty to the point of proposing assessment;
2. Complete interviews for all potentially responsible persons, and any other interviews necessary to determine responsibility and willfulness;
3. Secure 433A (Collection Information Statement) from all potentially responsible persons. Conduct financial analysis to determine whether the penalty, if assessed would be collectible;
4.Request signature of Form 2750, “Waiver Extending Statutory Period for Assessment of Trust Fund Recovery Penalty” from all potentially responsible officers. See IRM 5.14.7.4.1(1) through (4); and
5. If a potentially responsible officer refuses to extend the ASED, and the trust fund recovery penalty is determined collectible, complete and recommend assessment of the TFRP for that responsible person.
6. If potentially responsible persons have the ability to pay from current assets or income, request payments be made to reduce the trust fund portion of the liability. If they have the ability to make a significant payment or payments on the trust fund portion of liabilities, but do not make such payments (or do not make plans for payment from personal assets), consider recommending assessment of the TFRPs. If TFRPs are assessed on these cases, lien determinations should be made and, if appropriate, liens should be filed, and in most cases no other collection action should be taken during installment agreements.
However, if after assessing the TFRP the responsible person still does not make plans for payment from personal assets, other collection action may be taken. Before taking collection action against the responsible person, document the ICS history on why the action is being taken (since the corporate or LLC entity is in an IA) and group manager concurrence must be secured before such action commences.
Exception to the rule;
If taxpayers are currently “repeaters” , the trust fund recovery penalty normally will be assessed. (See IRM 5.14.7.2(1)(c).)
If you are currently working with the IRS insist on the aforementioned manual section.
by steve | Feb 28, 2012 | Installment Agreements, IRS Payment Plans, Tax Help
Does the IRS want a 433F from you? Do not fall into that trap! Use caution.
Use caution before giving that 433F financial statement to the Internal Revenue Service.
Most taxpayers have no clue what they are doing when sending a 433F to the IRS.
I should know. I am a former IRS agent and collections officer with the IRS. I also was a teaching instructor with the IRS.
I felt sorry for taxpayers who walked in or called the IRS on there own. It was almost stealing candy from a baby. You are walking into a trap.
Why?
IRS is a collection agency. They are not here to help the taxpayer. The taxpayer has no idea what IRS is looking for and more importantly they have no standard to judge whether the IRS Agent in the office or on the telephone is acting in the best interest of the taxpayer.
The fact of the matter is very simple, the IRS Agent is only acting in the governments best interest.
What is the 433F going to tell the IRS?
Everything!
You are giving the IRS a road map of your financial life and possible levy and seizure sources. IRS has very strict requirements on how it will work and close cases. Everything the IRS does as far as the collection division is tied into assets and the national standard expenses.
Many taxpayers believe they are in a financial hardship or a payment candidate however when the national standards are applied, the taxpayer has a wake up call. They find themselves behind the 8 ball and making a large payment to the IRS because of the 433F.
Remember, the only thing the IRS is looking at is assets and income, your liabilities are of no concern to the IRS. Your 433F Financial Statement is their road map to your pocket book. Let a tax professional give the IRS your 433F.
The National Standards and the 433F.
IRS Collection Financial Standards are intended for use in calculating repayment of delinquent taxes. These Standards are effective on March 1, 2011 for purposes of federal tax administration only. Expense information for use in bankruptcy calculations can be found on the website for the U.S. TRUSTEE program
National Standards have been established for necessary expenses: food, housekeeping supplies, apparel and services, personal care products and services, miscellaneous, housing and utilities, medical, transportation and a handful of other items. Each taxpayer must fit into the IRS national standards. If you go over the IRS standard that is your loss. IRS does have certain exceptions to this rule and a good tax representative can help you through this problem.
IRS Collection Financial Standards are intended for use in calculating repayment of delinquent taxes. These Standards are effective on March 1, 2011 for purposes of federal tax administration only. Expense information for use in bankruptcy calculations can be found on the website for the U.S. Trustee Program.
If you owe the IRS money, talk to a tax professional first. The last thing you want to do is to turn over that 433F on your own.
Also as a footnote, any IRS 433F must be fully documented and IRS will require proof of any expense recorded on the form.
Call us today and get results.
by steve | Feb 28, 2012 | Installment Agreements, IRS Payment Plans
Make payments to the IRS – Get a payment plan – IRS Tax Experts – South Florida – Miami, Ft. Lauderdale, Palm Beaches 954-492-0088
Make Payments to the Internal Revenue Service – Call us today and get started!
If you are looking for a IRS installment agreement, payment agreement, or payment plan it is very possible within the next hour you can be set up on the IRS system for making payments.
We are former local South Florida IRS Agents who know the system. We have over 60 years in the local South Florida IRS offices.
IRS Tax Options for Making Payments to the IRS.
The IRS offers different tax options to make payments and the IRS has been getting user friendly over the past couple years making installment agreements, payment agreements easier to obtain without giving your life away.
The Payment Program depends on the dollar amount you owe and the type of tax owed to the IRS.
If you owe payroll taxes, you will not qualify for these program. We will have to make special arrangements with the IRS. Payroll payments ,941, are much more complicated and detailed.
There are different types of installment agreements that a taxpayer can qualify for in making payments to the IRS.
To qualify for making payments to the IRS you must;
- File all required tax returns;
- Consider other sources (loan or credit card) to pay your tax debt in full to save money; ( IRS will asked if you have tried and might ask for the loan denial letter.
- Determine the largest monthly payment you can make ($25 minimum); and
- Know that your future refunds will be applied to your tax debt until it is paid in full.
- IRS will also make sure you have the proper amount of withholding is being taken out or make sure you are making ES payments if you are self employed.
To avoid the fee for setting up an installment agreement please keep the following in mind;
Pay the full amount you owe within 120 days to avoid the fee.
You should apply online to specify this option (or call if you owe more than $50,000). If you cannot pay the full amount within 120 days, the fee for setting up an agreement is:
- $52 for a direct debit agreement;
- $105 for a standard agreement or payroll deduction agreement; or
- $43 if your income is below a certain level.
Apply for an installment agreement
Call us today and we will review the entire process with you and also consider the filing of an offer in compromise and possibly the abatement of penalties and interest.
Make payments to the IRS – Get a payment plan – IRS Tax Experts – South Florida – Miami, Ft. Lauderdale, Palm Beaches
by steve | Feb 28, 2012 | IRS Tax Debt
Settle your Back Taxes with The Offer in Compromise Program 954-492-0088, FORMER AGENT, I TAUGHT THIS PROGRAM AT IRS, HEAR THE TRUTH!
I taught the offer in compromise program as a Former IRS agent. I worked out of the local South Florida IRS field offices. FREE CONSULTATIONS
- IRS accepts 20% of all Offers in Compromise filed.
- IRS received 55,000 offers in compromise last year.
- 90% of those accepted offers come from tax professional who know the system.
The Offer in Compromise is a IRS Tax Program that have lead many to thinking I can settle my taxes for ” pennies on a dollar.” While the statement is true many taxpayers are disappointed when IRS sends out a rejection letter.
Just for the record, as a Former IRS Agent who worked offers in compromise, IRS does everything they can to reject offers in compromise.
The Offer in Compromise requires a great deal of skill and knowledge. The Offer on Compromise is worked much like a IRS tax audit. IRS spends no less than 20 hours working the Offer.
IRS has specialists work the Offer in Compromise Program. These specialist are the highest level of IRS personnel training in financial review and analysis.
As a former IRS Agent I have worked hundreds of Offer in Compromise. Sadly, most taxpayer have no clue what they are getting into.
A word to the wise, never submit an offer in compromise without having a full evaluation to see whether you qualify for the program.
By submitting the offer in compromise you are giving the IRS a financial road map to your life and it can become a valuable collection tool if your offer in compromise goes south.
A 433-OIC is required to complete the evaluation.
The basic rules for Offers in Compromise, you must give IRS all your equity in all your assets. IRS will also complete an income analysis to determine monthly payments.
Offer in Compromise – Payment Options
Your initial payment will vary based on your offer and the payment option you choose:
- Submit an initial payment of 20 percent of the total offer amount with your application. Then you can wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
- You can submit your initial payment with your application.You can then continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package for details.
Understand the Offer in Compromise Program and the Process
While your offer in compromise is being evaluated by the IRS;
- Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
- A Notice of Federal Tax Lien may be filed;
- Other collection activities are suspended;
- The legal assessment and collection period is extended;
- Make all required payments associated with your offer;
- You are not required to make payments on an existing installment agreement; and
- Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today for a free tax evaluation.
Miami, Ft.Lauderdale, Palm Beach, South Florida – IRS Tax Experts
