IRS Collection Statute of Limitations 10 years- EXCEPTIONS TO THE RULE

by steve | Mar 29, 2011 | IRS Tax Advice, Tax News

[

Like every good thing, there are exceptions to rules. So the same applies with the IRS Statute of Limitations.

Generally, the IRS statue of limitation runs 10 years from the original date of assessment.

What is the date of assessment? It is the day or date the IRS actually processes your tax return on there IRS computer system. It is known on IRS tax transcripts as the TC 150 date. You can pull a IRS tax transcript to find out your statue date.

What all this means is that the IRS has ten years to collect any and all money from the taxpayer during those 10 years. If the IRS fails to do so the IRS tax debt becomes legally unenforceable. It is gone, finished, never to be seen again.

So lets look at the common exceptions of the ten rule rule and what tolls or extends the statute of limitation.

The most common reasons:

1. Bankruptcy ( Any Chapter)

The collection statute of limitations, in a case under the Bankruptcy Code, is suspended while the Service is prohibited by reason of the case from collecting, and for 6 months thereafter.

2. Judgment/Litigation

The statute of limitations for collection is found in IRC 6502. When a suit to reduce the tax liability to judgment is in the government’s interest, it must be filed prior to the statute’s expiration. The filing of a suit to reduce the tax liability to judgment will suspend the collection statute during litigation.
3. Collection Due Process (CDP) Appeal

The statute is suspended from the date the IRS receives a timely filed request for a CDP hearing to the date the taxpayer withdraws their request for a CDP hearing or the date the determination from Appeals becomes final, including any court appeals. If 90 days is not remaining on the statute of limitations when the determination becomes final, the statute of limitations is extended to equal 90 days. The collection statute is not extended for equivalency hearings.

4.Offer In Compromise ( OIC ) there are so many rules regarding this statute it is best to call a tax professional. generally it tolls for the time it is in OIC status.

5. Installment Agreements With Form 900 Waiver

Form 900 Waiver will only be executed in connection with granting a partial payment installment agreement and only in certain situations.IRS Policy dictates Form 900 Waiver is limited to no more than five years, plus up to one year to account for changes in the agreement.Relief From Joint And Several Liability On Joint Returns/Innocent Spouse

6.Taxpayer Living Outside the U.S.

The period of limitations on collection after assessment is suspended while the taxpayer is outside the United States if the absence is for a continuous period of at least six months per IRC 6503(c). To make certain that the Government has an opportunity to collect the tax after the taxpayer’s return, the period does not expire (where the taxpayer has been out of the country for six months or more) until six months after the taxpayer’s return to the country.

These are the top six most common reason. Consult a tax professional to find out more.

IRS Tax Debt Settlements – Former IRS Settlement Instructor – Offer in Compromise + Settlement Experts – Charlotte

by steve | Mar 29, 2011 | IRS Tax Advice, Tax News

Affordable Fresh Start Tax LLC    A Professional Tax Firm  

Former IRS   Since 1982

“A” Plus Rated by the Better Business Bureau   Practicing IRS Tax Law and IRS Debt Settlements since 1982

On staff are former IRS Agents that taught the Offer in Compromise/ Tax Debt Settlement Program at the IRS at the district and regional level.

We know all the tax strategies to get the results you need.

We get the job done!

We are one of the oldest, most trusted and experienced tax firms. We have over 140 years of professional tax expereince and over 60 years of working experience at the IRS.

Caution: Do not hire a tax mill. You will be ripped off! Check BBB ratings.
How we work your case to immediately resolve your IRS problem and get you immediate and permanent tax relief:

1. We immediately send a power of attorney ( POA ) to the IRS letting them know we are now your tax representative. You will never speak to the IRS. We handle everything.

2. We will make sure your tax returns are filed and current. If your tax returns are not up to date, IRS will refuse to work your case. This is leverage that the IRS uses to get you compliant. Lost tax records, no problem. We can pull tax transcripts, file and prepare your tax returns within days.

3. IRS requires a current financial statement. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. IRS will require a closing settlement method for each case.

IRS Settlement Agreements/ Tax Debt Programs can be in different forms:

a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is  also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.

b. Payment Agreements.  Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs IRS uses  to find you the  lowest  possible amount required.

c. Offer in Compromise /IRS Settlements / Tax Debt Settlement Programs. There are three types of OICs:

The IRS may accept an Offer in Compromise/Tax Debt Settlements based on three grounds:

1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.

2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:

(1) the examiner made a mistake interpreting the law,

(2) the examiner failed to consider the taxpayer’s evidence or

(3) the taxpayer has new evidence.

3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.

IRS Tax Problem Help – Professional Tax Firm/ IRS Tax Experts – Former IRS + Charlotte + Raleigh + 48205, 48226, 48217, 48238 ,48209

by steve | Mar 29, 2011 | IRS Tax Advice, Tax News

Affordable Fresh Start Tax LLC     A Professional Tax Firm specializing in IRS Problems   Former IRS Agents,  We Know the System!

We have been practicing IRS Tax Law and IRS Tax Relief  since 1982.

Get results today! Immediate and permanent tax help relief.

We are of the oldest, most trusted and most experienced professional tax firms. We have over 140 years of professional tax experience.

Do not hire tax mills, you will be ripped off. Hire true tax professionals with a firm history and a “A” Rating by the BBB.

Former IRS Agents, Managers and former IRS Instructors will get you the tax results you need.

We have worked for the IRS for over 60 years and know all the IRS tax strategies. We get results.

• Immediate  IRS Tax Representation
• Offers in Compromise   Tax Settlements  Debt Settlements
  
• Immediate Release of    Bank Garnishments    Wage Levies
• IRS Bill/Notice of “Intent to Levy”
• Dealing with IRS Certified Mail
  
• IRS Tax Audits, Large, Small Dollar
  
• Hardships Cases / Unable to pay at this time
  
• Payment Plans, Installment Agreements/Streamline
  
• Innocent Spouse Relief
  
• Abatement of Penalties and Interest
• State Sales Tax Cases
• Payroll/ Trust Fund Penalty Cases/ 6672
• Non-filers, never filed, old and past due tax returns

Why Hire Fresh Start Tax, LLC?  We tell you the truth!

1. Fresh Start Tax is a National Tax Firm whose principles have been practicing Tax Law since 1982.

2. On staff are Board Certified Tax Attorneys, CPAs and Former IRS Agents, Managers and Instructors.

3. Former IRS Agents/Managers will review, manage, represent and close your IRS Tax Case for the best settlement possible.

4. We are one of the most experienced and trusted Professional Tax Firms with over 140 years of tax experience.

5. We have an “A” Rating from the Better Business Bureau.