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
irs liability
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
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
Locating Taxpayers and Their Assets
When a tax debtor fails to meet his or her federal tax obligations, the Internal Revenue Service will typically institute collection proceedings intended to satisfy the tax debtor’s obligations by way of a levy, lien, seizure and/or garnishment. In doing so, the IRS’ first step is to actually locate the taxpayer in question as well
IRS Payment Plans over 50K
When a tax debtor is incapable of meeting his or her tax obligations, alternative mechanisms for satisfying a debtor’s tax obligations must be considered. A number of alternatives exist and have been approved time and again by the IRS, including Offers in Compromise and installment agreements. That said, the availability of these alternatives to paying
IRS Payment Plans for 50K or Less Owed
IRS Payment Plans for 50K or Less When a tax debtor is incapable of meeting his or her tax obligations, alternatives to payment of the full tax liability outright and immediately must be considered. Entering into an installment agreement with the Internal Revenue Service (IRS) is just one of a number of viable options for
IRS Liens Don’t Have to Stop Refinancing
When a tax debtor cannot meet his or her tax obligations, more often than not the result is a Notice of Federal Tax Lien and effectively a lien on the debtor’s assets. If the tax debtor’s principal asset is his or her home, a lien on that home can make it all but impossible to
Tax Gap
The tax gap is the Internal Revenue Services (IRS) approximation of the total amount of taxes outstanding. The calculation of this figure is a massive endeavor and only occurs every five years or so. As of 2006, the voluntary compliance rate through the U.S. was relatively unchanged at approximately 83%. Internal Revenue Service, The Tax