Tax Relief: Collection Interview – Getting to Know the Revenue Officer
Posted by LWM Team on Tue, Jul 06, 2010
Revenue officers are taught to appear sympathetic to gain your trust. You are not obligated to answer questions but if you decide not to answer the questions you are asked, your assets and wages can be levied. If you are cooperative the officer may be helpful. A Collection Information Statement must be completed re your lifestyle expenses.
- - 433-A is for the self-employed and wage earners
- - 433-B is for business entities, partnerships, LLCs and corporations
The relevant forms must be completed for tax negotiations. Employees must complete both forms if payroll tax is owed.
When You Will Not Disclose Financial Information
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- Refusing to give personal financial information is not illegal but lying is (IR Code 7206). The IRS can do the following if you do not cooperate fully:
- Scrutinize public real estate and car records and call financial establishments to seize or levy assets. Real estate and accounts not in state are hard to discover.
- Issue a summons to get your financial records and information. Disregarding a summons can lead to a court hearing or jail term.
There are two portions on both 433 forms to be completed and they are:
Assets and Liabilities, Income and Expenses.
At the conclusion of the meeting you do not have to sign forms. Many tax payers underestimate their living expenses by around ten to forty percent. If you do this the IRS will want the surplus money and what they believe is excessive living costs. Say you want to check the forms at home before signing. You can revise if there are errors before signing. If officer refuses, speak to a supervisor. If you signed and made a mistake you may request a revision. Then show them the corrected figures.
It's likely you will have to prove your living costs. Have paid receipts, canceled checks, repair bills, medical bills, rent or mortgage receipts and insurance notices with you.
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