IRS not issuing liens or levies, enforcement actions limited, during shutdown
Interesting Article regarding lien and levy issues.
Enjoy!
Dedicated to posting successful tax resolution work that I have been a part of over the years. Please feel free to reach me at www.highlandtaxresolution.com or call us at 720-398-6088 for your free consultation.
Thursday, October 10, 2013
Saturday, October 5, 2013
Government Shutdown and the Effects on the IRS
IRS has announced on its website (irs.gov/uac/Newsroom/IRS-Operations-During-The-Lapse-In-Appropriations) that its operations have been scaled back due to the government shutdown. However, it emphasized that taxpayers must nonetheless continue to meet their tax obligations as normal.
Background on the shutdown. Due to the House and Senate's failure to pass a short-term spending bill to keep the government funded, the government was shut down on October 1. In the days leading up to the shutdown, the House passed several versions of the spending bill, each of which contained a provision that would eliminate funding for, delay significant provisions of, or otherwise make changes to Obamacare. The Senate, in turn, rejected the House-passed versions of the bill and repeatedly sent a "clean" version of it back to the House.
The government shutdown will continue until Congress can reach an agreement.
Effect on IRS operations. The shutdown affects nearly all governmental agencies, including IRS. In anticipation of the potential shutdown, the Treasury Department had released its 63-page long "FY2014 Shutdown Contingency Plan (Non-Filing Season)" for IRS on September 27. On October 1, IRS issued a release on the shutdown's effect on its operations. Highlights follow.
* Keep filing returns and making deposits on time. Individuals and businesses should keep filing their tax returns and making deposits with IRS, as required by law. Individuals who requested a 2012 income tax filing extension should file their returns by Oct. 15, 2013, and all other tax deadlines-including those covering individuals, corporations, partnerships, and employers, as well as payroll taxes-remain in effect. IRS will accept and process all tax returns with payments, but will be unable to issue refunds during the shutdown. IRS encouraged taxpayers to file electronically since most of those returns are processed automatically, noting that the processing of paper returns will be delayed until full government operations continue.
* No in-person or live phone assistance. No live telephone customer service assistance will be available during the shutdown. However, most automated toll-free telephone applications will remain operational. IRS walk-in taxpayer assistance centers will also be closed. IRS's website will remain available, although some of its interactive features may not be available.
* Certain appointments presumed cancelled. While the government is closed, people with appointments related to examinations (audits), collection, Appeals or Taxpayer Advocate cases should assume their meetings are cancelled. IRS personnel will reschedule those meetings at a later date.
* Automated notices will continue. IRS won't be working any paper correspondence during the shutdown, but automatic notices will continue to be mailed.
Please keep an eye out for more information. You may find additional information at www.highlandtaxresolution.com.
Monday, September 30, 2013
Offer In Compromise Saves Client $65,000!
Our client came to us with an unpaid trust fund balance totaling over $100,000 before we filed his offer in compromise. The debt stemmed from a business he ran that accrued over $300,000 in payroll tax debt. We assisted him with the closure of the business, thus leading us to the determination we would file an offer in compromise for him. When he came to us he was over the age of 80 years old. Between him and his wife, they had plenty of money in both the equity in his home as well as her retirement account to fund full payment of the liability. This case was going to be a tricky one in order for us to get an offer in compromise filed and accepted. Usually when you show the IRS via offer in compromise you can pay the IRS in full, they expect payment in full.
We decided to file a effective tax administration offer in compromise. An effective tax administration (ETA) offer in compromise is filed under the premise that even though the taxpayer has the ability to fully pay the tax debt in full, doing so would create a hardship. An ETA offer in compromise requires financial data as well as factual data based on the facts as to why the taxpayer cannot fully fund the tax liability. Therefore, we put together the offer in compromise with all financial data as well as reasoning showing the taxpayer was 82 years of age, needed all of his retirement rightfully so, and even though his wife could fully fund the liability with the equity in the home, she was not responsible for the tax liability.
The IRS initially rejected the offer in compromise indicating the taxpayer could refinance, or obtain a reverse mortgage in order to fully pay the liability. However, after much research, we concluded if the taxpayer decided to refinance or obtain a reverse mortgage there were not only too many risks involved but the costs associated with obtaining the $100,000 to fully fund the tax liability would encroach on the wife's portion of the equity. We also argued reverse mortgages are not the best for a taxpayer given the risks associated with a reverse mortgage. Certain risks such as high interest rates, higher closings costs, as well as potential foreclosure if one spouse dies and the other continues living in the home are just some of the risks associated with the process.
After our arguments and showing the IRS our offer in compromise should be accepted, the IRS finally agreed to an offer amount of $35,000. The taxpayer has already paid $7,000 and therefore has $28,000 remaining to be paid within the next 5 months. Once the taxpayer has paid the $28,000 he must remain current and compliant for a period of 5 years, the IRS will snag any refunds due on the 2013 and 2014 tax returns, and he must not accrue any additional debt through another business entity.
At Highland Tax Group, Inc. we are proud to say the ETA offer in compromise was accepted. Check us out at www.highlandtaxresolution.com or call me at 720-398-6088 to see if you qualify for something similar!
We decided to file a effective tax administration offer in compromise. An effective tax administration (ETA) offer in compromise is filed under the premise that even though the taxpayer has the ability to fully pay the tax debt in full, doing so would create a hardship. An ETA offer in compromise requires financial data as well as factual data based on the facts as to why the taxpayer cannot fully fund the tax liability. Therefore, we put together the offer in compromise with all financial data as well as reasoning showing the taxpayer was 82 years of age, needed all of his retirement rightfully so, and even though his wife could fully fund the liability with the equity in the home, she was not responsible for the tax liability.
The IRS initially rejected the offer in compromise indicating the taxpayer could refinance, or obtain a reverse mortgage in order to fully pay the liability. However, after much research, we concluded if the taxpayer decided to refinance or obtain a reverse mortgage there were not only too many risks involved but the costs associated with obtaining the $100,000 to fully fund the tax liability would encroach on the wife's portion of the equity. We also argued reverse mortgages are not the best for a taxpayer given the risks associated with a reverse mortgage. Certain risks such as high interest rates, higher closings costs, as well as potential foreclosure if one spouse dies and the other continues living in the home are just some of the risks associated with the process.
After our arguments and showing the IRS our offer in compromise should be accepted, the IRS finally agreed to an offer amount of $35,000. The taxpayer has already paid $7,000 and therefore has $28,000 remaining to be paid within the next 5 months. Once the taxpayer has paid the $28,000 he must remain current and compliant for a period of 5 years, the IRS will snag any refunds due on the 2013 and 2014 tax returns, and he must not accrue any additional debt through another business entity.
At Highland Tax Group, Inc. we are proud to say the ETA offer in compromise was accepted. Check us out at www.highlandtaxresolution.com or call me at 720-398-6088 to see if you qualify for something similar!
Thursday, September 19, 2013
IRS Releases Announcement Regarding Severe Storms in Colorado
The IRS is providing tax relief to individual and business taxpayers impacted by severe storms, flooding, landslides and mudslides in Colorado.
The IRS announced today that certain taxpayers in the counties of Adams, Boulder, Larimer and Weld will receive tax relief, and other locations may be added in coming days following additional damage assessments by the Federal Emergency Management Agency (FEMA).
The tax relief postpones certain tax filing and payment deadlines to December 2, 2013. It includes corporations and businesses that previously obtained an extension until September 16, 2013, to file their 2012 returns and individuals and businesses that received a similar extension until October 15. It also includes the estimated tax payment for the third quarter of 2013, which would normally be due September 16.
The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.
Practitioners located in the covered disaster areas who maintain records necessary to meet a filing or payment deadline for multiple taxpayers outside the disaster area may contact the IRS to identify such clients using the procedures described on the IRS website. The relief typically applies to taxpayers in collections, dealing with a Revenue Officer, Audit, Appeals, Offer In Compromise, or in another collection matter concerning the
The IRS encourages taxpayers and tax practitioners to monitor the Tax Relief in Disaster Situationsin IRS.gov for updates.
The tax relief postpones certain tax filing and payment deadlines to December 2, 2013. It includes corporations and businesses that previously obtained an extension until September 16, 2013, to file their 2012 returns and individuals and businesses that received a similar extension until October 15. It also includes the estimated tax payment for the third quarter of 2013, which would normally be due September 16.
The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.
Practitioners located in the covered disaster areas who maintain records necessary to meet a filing or payment deadline for multiple taxpayers outside the disaster area may contact the IRS to identify such clients using the procedures described on the IRS website. The relief typically applies to taxpayers in collections, dealing with a Revenue Officer, Audit, Appeals, Offer In Compromise, or in another collection matter concerning the
The IRS encourages taxpayers and tax practitioners to monitor the Tax Relief in Disaster Situationsin IRS.gov for updates.
If you have further questions please call me at 720-398-6088 or www.highlandtaxresolution.com.
This article was provided by the following organization:
National Association of Tax Professionals (NATP)
PO Box 8002
Appleton, WI 54912-8002
800.558.3402www.natptax.com
PO Box 8002
Appleton, WI 54912-8002
800.558.3402www.natptax.com
Monday, September 9, 2013
Highland Tax Group, Inc. is Open for Business!!
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Wednesday, August 7, 2013
State of Colorado Garnishment Reduced!
Garnishment in place? State of Colorado debt? Look no further. Highland Tax Group, Inc. can and will help you! We traveled to the State of Colorado Department of Revenue on behalf of a client today. Previously our client was getting garnished for $516 monthly, which attributed to about 25% of his pay. We were able to take down financial documentation to prove the garnishment was creating a hardship. The end result? We were successful with a reduction to $37 monthly! That is right, the client will is now only paying $37 dollars monthly! Great things are happening here at Highland Tax Group, Inc. Check out our website at www.highlandtaxresolution.com for more information regarding our services.
Thursday, August 1, 2013
IRS Tax Debt Resolved!
Many times when our clients hire us to resolve their outstanding IRS tax debt, they are usually up against a wall. Either their bank accounts have been levied, wages garnished, or the IRS is knocking at their door.
One of our clients came to us in January of this year with a levy against his bank accounts and wages as it related to his IRS tax debt of $11,000. There was not a lot of work to complete however, the work necessary to get the levy released was crucial. We needed to contact the IRS ACS division immediately, which is a collection division of the IRS. We contacted the IRS and after we were on hold for awhile, we spoke to a gentleman who was willing to assist us with the IRS tax debt problem. The clients bank accounts were levied for $7,800 at the time of the levy (savings and checking included). His wages were also being garnished to the tune of 25% of his gross wages in order to fully pay the IRS tax debt.
At the time of the call we did not have financial data to offer or a payment plan to offer to resolve his IRS tax debt. Further, the IRS collection statutes were going to expire come July of this year. We knew the statutes were close to expiring as it related to the IRS tax debt and this information was crucial to resolving the outstanding debt for our client. Therefore, we didn't want to give too much information, nor did we want to set up a payment plan the client could not afford. What we offered the IRS was a 60 day full payment deadline to handle the IRS tax debt. Therefore, we had a call back date of March 1st to provide financial information and a payment plan proposal. The levies against the bank accounts and wages were released immediately and faxed to the appropriate parties. The client was ecstatic.
Ultimately, we set up a small payment plan for $118 monthly and the client paid $118.00 monthly on his IRS tax debt until July of this year. As of right now, the statutes have expired and the client no longer needs to pay on any type of payment plan. Ultimately, he saved over $10,000 on his IRS tax debt. He was grateful for the work we did. Of course, if you are in trouble with the IRS and owe IRS tax debt please see our website for more information at www.highlandtaxresolution.com or call me directly at 720-398-6088.
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