Posted by Tom Regan | Mar 28, 2020 | 0 Comments
The IRS is making efforts to take some pressure off taxpayers during the COVID 19 pandemic. By now, most taxpayers are aware that the filing of their 2019 Form 1040, and the payment of the tax relating to that Form, are not due until July 15, 2020. This was a good first step for the IRS. Since then, the IRS issued News Release IR-2020-59 notifying taxpayers with outstanding tax obligations of extensions for dealing with some of these obligations and explaining relief for those involved in installment agreements and negotiating an Offer in Compromise.
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Posted by Tom Regan | Dec 08, 2016 | 0 Comments
The IRS must give a taxpayer written notice, sent by certified mail, at least 30 days before it takes any collection action like a bank levy or a wage levy. IRC Section 6331(d). In 1998, Congress added the requirement that the IRS advise the taxpayer of his or her right to a Collection Due Proces...
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Posted by Tom Regan | Aug 21, 2016 | 0 Comments
If you want the chance to discharge your individual income taxes in bankruptcy, in Minnesota, file your returns. This is still an option if you live in the Eighth Circuit (this includes Minnesota). It is not an option in some other circuits.
More courts are accepting or at least entertaining the...
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Posted by Tom Regan | Mar 02, 2014 | 0 Comments
We regularly receive calls from people who tried to resolve their tax obligations through an Offer in Compromise, but the Offer was rejected. Some have submitted the Offer on their own and some have been represented by an accountant, CPA, or an attorney. The one thing all of these Offers had in common was that the amount offered had no basis.
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Posted by Tom Regan | Feb 09, 2014 | 0 Comments
We often receive telephone calls and e-mails from individuals and businesses who have been contacted by the IRS for a tax obligation owing and they don't know what to do. There are many options for dealing with these obligations. The correct option depends on the facts of the case. Unfortunately,...
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Posted by Tom Regan | Jan 24, 2013 | 0 Comments
In her annual Report to Congress, Nina Olson , the Taxpayer Advocate, pointed out that the IRS is under-utilizing the Effective Tax Administration (ETA) Offer in Compromise (OIC) program. The IRS accepted an average of only 27 ETA OICs per year.
The ETA program is designed as an alternative to t...
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Posted by Tom Regan | Oct 29, 2012 | 0 Comments
Yes, under the right circumstances. Income taxes (not trust-fund or withholding taxes) are dischargeable in a Chapter 7 Bankruptcy if certain conditions are met.
Has it been more than three years since the original due date, including extensions, for the return? If not, the taxes are not dischar...
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Posted by Tom Regan | Oct 16, 2012 | 0 Comments
Yes. You have many options for challenging an IRS assessment. Two common procedures are the Collection Due Process (CDP) hearing and the Collections Appeal Program (CAP) hearing, depending on the circumstances.
The CDP program gives you the right to appeal the filing of a Notice of Federal Tax L...
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Posted by Tom Regan | Sep 29, 2012 | 0 Comments
Yes. For the IRS, the procedure is known as an Audit Reconsideration Request (AR). The IRS has the discretionary authority to abate an assessment of any tax if it is in excess of your's liability. Reasons for an AR include: you did not appear for the audit; you moved and did not receive the corre...
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Posted by Tom Regan | Sep 25, 2012 | 0 Comments
Yes. An in-business corporation can compromise its outstanding employment tax obligations with the IRS. In past years, the IRS required that an Offer in Compromise (OIC) from an in-business corporation include not only its ability to pay, but also, the amount the IRS could collect from the respon...
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Posted by Tom Regan | Nov 15, 2011 | 0 Comments
What does it mean when the IRS says it plans to take enforced collection action? Usually, it means that the IRS intends to issue a levy to a bank or employer. Those are usually the first two targets of a levy because they are easy and they get the taxpayer's attention. My experience is that most ...
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Posted by Tom Regan | May 13, 2010 | 0 Comments
This is the tenth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
Taking No Action. Some taxpayers have the option of taking no action to resolve their outstanding tax obligations ...
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Posted by Tom Regan | May 06, 2010 | 0 Comments
This is the ninth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
Innocent Spouse/Separation of Liability/Equitable Relief. IRC 6015. The tax liability on a joint return will often...
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Posted by Tom Regan | Apr 29, 2010 | 0 Comments
This is the eighth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
Offer in Compromise – Minnesota Department of Revenue. The starting point for an Offer to the Minnesota Departmen...
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Posted by Tom Regan | Apr 22, 2010 | 0 Comments
This is the seventh post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
Offer in Compromise – IRS. The IRS and the MDR have the authority to settle, or compromise, tax liabilities by a...
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Posted by Tom Regan | Apr 15, 2010 | 0 Comments
This is the sixth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
Installment Agreement – MDR
Guidelines. The Department of Revenue states that it does not have specific payment p...
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Posted by Tom Regan | Mar 15, 2010 | 0 Comments
This is the fifth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
Installment Agreement – IRS. The IRS has the option of accepting payments through an installment agreement if the ...
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Posted by Tom Regan | Feb 15, 2010 | 0 Comments
This is the fourth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
Bankruptcy. We encourage anyone interested in filing a petition for relief in bankruptcy to meet with a skilled b...
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Posted by Tom Regan | Jan 15, 2010 | 0 Comments
This is the third post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
Audit Reconsideration. Through audit reconsideration, a taxpayer may get a second chance at an audit. He may have ...
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Posted by Tom Regan | Dec 15, 2009 | 0 Comments
This is the second post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
The Taxpayer Advocate. The Taxpayer Advocate Service is an IRS program that provides an independent system to ass...
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Posted by Tom Regan | Nov 15, 2009 | 0 Comments
This is the first in a series of posts dedicated to options for taxpayers to deal with outstanding tax obligations. This and future posts will be categorized as Collection Options.
Appeal of Collection Action. The taxpayer has the right to appeal a determination relating to the assessment of the...
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Posted by Tom Regan | Aug 31, 2009 | 0 Comments
A Notice of Federal Tax Lien (NFTL) can cause irreversible harm to an individual or a business. The NFTL is usually filed with the County recorder and/or the Secretary of State at exactly the wrong time, that being when the individual or business has the greatest need for good credit. The NFTL wi...
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Posted by Tom Regan | May 07, 2009 | 0 Comments
Having an outstanding obligation with the Internal Revenue Service (IRS) and being unable to propose an acceptable resolution to satisfy that obligation is an intimidating scenario for any taxpayer. The IRS will entertain a variety of solutions to resolve an obligation, including Offers in Compro...
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Posted by Tom Regan | Apr 18, 2009 | 0 Comments
The bankruptcy laws were created, in part, to give a fresh start to individuals struggling through a difficult financial situation. This includes relieving taxpayers of the overwhelming burden of old tax, penalty, and interest obligations. Taxpayers who are looking at their options for resolving ...
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Posted by Tom Regan | Mar 18, 2009 | 0 Comments
A divorce is usually stressful enough without the added concern of obligations to the IRS. Unfortunately, many couples must deal with an IRS obligation as part of dissolving their marriage. The family law court may designate who is ultimately responsible between the parties to pay the debt. But, ...
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