Posted by LWM Team on Wed, Jun 30, 2010
Requesting Your File to Be Sent to a Local Tax OfficeReasons to deal with a local tax officer instead of an ACS collector:
• Unable to reach an agreement with the collector
• Incorrect bill
• If collector knows your bank, employer, residence he can levy bank accounts or wages; assigned tax officers are more cautious.
• Tax officers may offer longer payment plans and more options if you give more financial details
You must have exceptional reasons to get transferred from the Audit Collection Service to a local tax office such as, if you oppose the tax amount and want a full explanation from a tax officer. In such an instance, ACS collectors must transfer your file to a local tax office in order to determine accuracy.
As long as your reason is not completely untrue you may keep asking for a transfer even if you're turned down. The more you owe, the better your chances are of transferring from the ACS to a local tax office. Put your reasons for objecting in writing and request a meeting with a local tax officer.
Posted by LWM Team on Tue, Jun 15, 2010
Tax debt under $25,000 could qualify you for a payment plan of up to sixty months. You request it but it can be withheld due to unfiled returns. Debt of more than $25,000 must be worked out with the ACS.
Have a strategy prior to contacting a collector. Make any excuse not to talk if they contact you first. Say you’ll get back to them. If you don’t have facts and figures don’t reply to any questions except your name.
When you contact a collector have your income, living expenses, assets and debt data. The information is akin to IRS Form 433-A & -B, Collection Information Statement for Businesses, Self-Employed Individuals and Wage Earners. Your objective is to present an organized list of your finances for more time to pay. The collector wants all tax money paid quickly.
When you call the collector, be prepared to wait. Take down his name and ID. Write down notes. You could speak to a different collector each time you call. Some may be more sympathetic than others. You must emphasize why it’s difficult to meet your expenses e.g. a low income. Be truthful regarding assets. Cut short tricky questions such as a second income with a plausible excuse. Rather promise to call back later.
The collector may grill you regarding home equity, other real estate, bank balances and if you qualify for credit. He wants to get you to pay your tax debt in full but may not force you to take a loan. If he thinks you can pay, he will expect payment within thirty days. If not, you could get a monthly payment plan also called an installment agreement (IA). You may have to give over pay slips, rent receipts etc to back it up. Complete a Collection Information Statement. If you made a verbal agreement, follow through. Pay on time even if the IRS monthly billing is late.
www.LimonWhitaker.com
Posted by LWM Team on Wed, Jun 02, 2010
The Internal Revenue Service does not overlook taxes owed by a business/ home business that closed its door. Even if the business has not been operating for several years it will not be free from the expectations of the Internal Revenue Service. You can be sure the Internal Revenue Service will make every effort to collect employment taxes and officers of that business will be held responsible. However, if the business closed down in a proper manner by following the correct tax procedures and none of its assets got transferred to third parties in order to continue operating in a fraudulent fashion it will be regarded as not collectible. In such an instance any Internal Revenue Service tax notices are being automatically produced by a computerized procedure.
A business that is regarded as truly not collectible will not have the attention of the Internal Revenue Service. The Internal Revenue Service can pursue any of those who made the decisions not to pay employment taxes to the Internal Revenue Service. They would be under the impression that officers of the business are liable to a lesser or greater degree. A penalty for trust fund recovery would have been evaluated by the Internal Revenue Service against officers responsible for the employment taxes withheld from workers’ salaries.
A business that is correctly closed and is not collectible will not be pursued by the Internal Revenue Service. As there are no assets, they will go after officers, owners and managers due to their personal liability. This is known as ‘joint’ and ‘several liability’. If the collection of one hundred percent by the Internal Revenue Service is from another person you no longer have a obligation to pay. The collection can be carried out in any way the Internal Revenue Service decides is best but may not be more than one hundred percent of what is owed.
According to the IRS Taxpayer Advocate 2002 to 2007, trust fund assessments amounting to 13.5% was carried out against owners, officers and managers. The Internal Revenue Service is not excessive in their pursuance of closed businesses.
www.LimonWhitaker.com