The Internal Revenue Service (IRS) has a number of remedies at its disposal designed to further the collection of outstanding tax obligations. Among these remedies is a jeopardy assessment, which occurs where the IRS believes following the normal course of tax collection would result in a loss to the IRS and the government. Under IRC
How-To Legal Advice
Partial Payment Installment Agreements
As a default rule, the Internal Revenue Service expects that taxpayers are to meet their tax obligations in full, whether immediately as they become due or if not, then over the life of an installment agreement, or payment plan. However, installment agreements are typically granted only where the tax debtor is financially capable of satisfying
IRS Interest Abatement
When a taxpayer fails to meet their federal tax obligations to the Internal Revenue Service (IRS), interest will accrue on the amount of the tax obligation that remains outstanding. However, there are a number of mitigating circumstances in which a taxpayer can seek to avoid or abate interest on a tax obligation. Interest on tax
IRS Forms 940 and 941
Under the current federal tax system, employers are required to pay a Federal Unemployment Tax Act (FUTA) tax. The funds collected by the Internal Revenue Service (IRS) from this tax, together with state unemployment tax collections, are made available to workers who have recently lost their jobs in the form of unemployment compensation. See Internal
CP 523
The Internal Revenue Service (IRS) has a number of ways to both accommodate struggling taxpayers while also mitigating losses in connection with taxpayer’s failing to meet their tax obligations, one of which is to put a taxpayer in default on an installment agreement CP 523. Under the terms of an installment agreement, a taxpayer will
Collection Appeal Rights
When a tax debtor fails to stay current with his or her tax obligations, the Internal Revenue Service (IRS) will eventually initiate collection proceedings in order to collect the outstanding tax liability from the tax debtor. Tax debtor should understand that just because the IRS is a federal agency, its actions are not always proper
California Residency Audit
A person’s “residence” under California law is the key to understanding their state income tax liability. For this reason, the California Franchise Tax Board (FTB) conducts residency audits that will determine a person’s residency called a California Residency Audit. Outcomes of a California Residency Audit Generally, three outcomes are possible; a taxpayer may be found
Future Income (IRM 5.8.5.18)
The Internal Revenue Service’s (IRS) acknowledges that some taxpayers simply cannot meet their federal tax obligations. In other words, the taxpayer’s net assets and income less living expenses does not permit the taxpayer to pay back the IRS in full. In such situations, the IRS may be receptive to an Offer in Compromise, or an
FTB Collections
This blog entry will focus on the various techniques that the California Franchise Tax Board (FTB) use to collect on outstanding liabilities.There are a number of ways that a taxpayer could end up owing the FTB. Generally it is due to either: (1) filing a return and not paying the amount owed in full; (2)
Rights as a Taxpayer
The tax code is complicated, and can even be overwhelming, especially if you run into problems with your taxes. The IRS unquestionably has greater knowledge of the tax code, so it is important to be aware of your rights as a taxpayer. Congress, in the last two decades, passed the Taxpayer Bill of Rights. This