Internal Revenue Service (IRS) collateral agreements are agreements between a taxpayer and the IRS whereby the taxpayer makes a promise to the IRS to perform in some way. It may be a promise to pay a delinquency or file a return, but it is not to be confused with an offer in compromise. Unlike a
How-To Legal Advice
Contesting an IRS Levy
The Internal Revenue Service (IRS) has the power to levy on a tax debtor’s assets in the event that a tax debtor fails to remit to the IRS taxes previously assessed 30 days after receiving a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice). However, there are
Effect of Reporting an Account as Currently Non-Collectible
When a taxpayer is incapable of meeting his or her federal tax obligations, he or she has a number of options, each of which can serve to delay, reduce or even expunge tax debt. Offers in compromise, installment agreements, and hardship determinations are just some of the ways in which tax debtors can effectively manage
Form 433-F
When a tax debtor is unable to meet his or her tax liabilities, the Internal Revenue Service (IRS) may under certain circumstances approach the tax debtor to implement a workable payment plan. In doing so, the IRS acknowledges that this is the best solution to a situation where the tax payer is unable to pay,
Form 433-A
When a tax debtor claims that he or she is unable to meet his or her federal tax obligations, the Internal Revenue Service (IRS) must endeavor to learn more about the tax debtor’s financial situation in order to verify this claim. By doing so, the IRS learns more about the debtor’s financial ability to pay,
Hardship
When a taxpayer fails to meet his or her tax obligations, and provided that taxpayer does nothing to remedy the situation, such as request an offer in compromise or an installment agreement, the Internal Revenue Service will eventually initiate collection proceedings. Those collection proceedings include the filing of a Notice of Federal Tax Lien with
IRS Non-Collectible Accounts – Basis for Reporting
IRS Non-Collectible Accounts Policy Statement 5-71 (aka P-5-71) grants the Internal Revenue Service (IRS) with the authority to report accounts currently not collectible. When an account is deemed currently not collectible, accounts can then be removed from collections altogether until the account is up for review where it is determined whether the currently not collectible
How to Get a Tax Levy Released
There are a number of ways to release an Internal Revenue Service (IRS) tax levy, the most obvious being to simply pay off the outstanding tax obligation. Of course, that option remains unavailable to many people, but there are a number of other ways to release a levy that many tax debtors might find advantageous.
IRS methods of dealing with Repeater Taxpayers
The Internal Revenue Service (IRS) provides a range of options to taxpayers that cannot meet their tax obligations in a timely fashion. However, the IRS tends to give far less leniency to some taxpayers than others, and “repeaters” are one such group that the IRS tends to accord far less leniency. A repeater is defined
Streamlined Installment Agreements
When a taxpayer lacks sufficient assets and income to meet a tax obligation in full, installment agreements with the Internal Revenue Service (IRS) can be useful. Installment agreements prevent the IRS from levying on a tax debtor’s assets for the period of time that the installment agreement remains in place, and provided the tax debtor