1.
The IRS will compare information, such as taxpayer income, expenses, etc., to information already on the IRS system of asset gathering. It is information gathered over the years through tax returns, 3 parties and levy sources.
2.
Full credit reports are required when conducting financial analysis and verification on the Large dollar Accounts, those over $100,000.00. In these cases, the IRS will do the following:
3.
Identify past residences and employers of the taxpayers. The IRS already has this information available.
Verify competing lien holders, balances due, and payment history of the taxpayer.
Identify indicators of potential assets not listed on the Collection Information Statement. The IRS also looks for badges of fraud.
Identify other creditors as lead for undisclosed assets.
4.
The IRS will also find out if you have given a financial statement to other 3 third parties and can summons for them as well.
5.
The IRS can Google your name and find out information about your case.
There may be instances when the balance due on an account in a Large Dollar Team is below the dollar amount for the above referenced LEM criteria; a full credit report may be considered to assist in locating taxpayer assets or as an aid in the verification of financial information prior to granting an Installment Agreement or closing as Unable to Pay.
6.
Secure pay stubs from all wage sources, only when necessary.
7.
Validate any unreasonable expenses to see if they should be included as necessary expenses.
8.
Verify and correct Form W-4 or estimated payments.
9.
Consider a withholding compliance referral for possible business accounts.
10.
If necessary, the IRS will secure banking records or other verification of income/expenses. Compare data to income and expense information provided by the taxpayer.
11.
Document the Account Management System in the case history and resolve all discrepancies. The IRS will continue to build an asset history on all taxpayers. Big Brother is watching.
12.
If proof of self employment income is required, secure proof for at least two months.
Invoices, bank statements, accounts receivable, commission statements,things of this sort, etc.
13.
Verify compliance with estimated tax payments and/or Federal Tax Deposit payments.
14.
Check to determine if the taxpayer previously defaulted on an Installment Agreement. If this is the case, the IRS will take a tougher approach.
15.
Strongly suggest use of a Payroll Deduction Installment Agreement or Direct Debit Installment Agreement.
16.
Advise taxpayers to submit voluntary payments if and whenever possible.
17.
If the taxpayer cannot full pay within the Collection Status Expiration Date, and does not meet Currently Not Collectible hardship criteria, follow Partial Pay Installment Agreement procedures.
18.
If unable to enter into an Installment Agreement, the IRS will refer to Installment Agreement rejection procedures and send the case out to a field agent.
Should you have any question, please call us at Fresh Start Tax today. 1-866-700-1040