1. What are the different ways to resolve unpaid taxes? – Short-term 30 to 90 day extensions, Monthly Installment Agreements, Offers in Compromise, Bankruptcy, hardship suspension, Innocent Spouse and Statute Expiration. Detailed explanations of each resolution are as follows . . .
2. What do I need to know BEFORE I call the IRS? – You must know everything about your clients’ tax situations. What tax returns are filed/unfiled and how much is owed to the IRS? If you do not know, you can ask the IRS, they must tell you. Next, you must know . . .
3. How long before the IRS levies on bank accounts or wages or attempts a field contact? – If your client owes money to the IRS and neglects to pay, the IRS can and will levy bank accounts, wages, accounts receivable, etc., and, if necessary, conduct a field investigation, which can include contacting the taxpayer at home or at their business. If your client has not . . .
4. How do I prevent the IRS from levying paychecks, bank accounts, accounts receivable? – First, read all IRS Notices and be responsive to all IRS requests. Second, do not pick up the phone to call the IRS until you are prepared to answer in-depth questions about . . .
5. What does the IRS know about my client? – The IRS knows which returns have been filed/not filed and all of the information on the filed tax returns. The IRS also knows . . .
6. What will the IRS ask? – The IRS will ask for general information such as Taxpayer Identification Numbers (SSN & EIN), addresses, telephone numbers, dates of birth, dependents, etc. The IRS will also ask for . . .
7. What should I disclose to the IRS about my client? – By law you do not have to tell the IRS anything. However, if you want to protect your client’s financial security, not suffer levies or seizure, and resolve the tax problem(s) once and for all, it is smart to . . .
8. Can I lie to the IRS? – Yes, but it is not a wise thing to do. IRS agents talk to taxpayers and representatives all day, every day and almost always assume that taxpayers/representatives are not being forthright. They interview . . .
9. Will the IRS believe what I tell them? – Generally speaking, yes, but they are very suspicious. They know what makes sense and what does not when it comes to income and expenses. In some instances you may have to . . .
10. Will the IRS lie to me? – Not knowingly, but that is not the real problem. The real problem is that front line tax collectors are . . .
11. Will the IRS seize cars, real estate, businesses? – The IRS can seize just about any assets needed to pay unpaid taxes. However, you must . . .
12. Will the IRS want or take all of my client’s income? – The tax collector does not want all of your client’s income. Tax collectors must allow . . .
13. Will the IRS allow my client to pay living expenses? Business expenses? – Yes, within reason. The IRS must allow . . .
14. Can payments to the IRS be designated to specific liabilities? – Voluntary payments can be designated to any existing or future liabilities (pending audit) or to current taxes. However, payments on a formal Installment Agreement . . .
15. On what does the IRS base its collection actions? – First, the IRS looks at your client’s cooperation and sincere efforts to resolve the tax problems. Second, the IRS must make sure that all delinquent returns are filed. Third, the IRS must make sure that your client is . . .
16. What do I do if my client has not filed past due tax returns? – First, determine from any IRS Notices exactly which years the IRS believes are not filed. If your client does not . . .
17. Can my client go to jail for NOT FILING tax returns? – Technically, it is possible. However, criminal prosecution is very . . .
18. Can my client go to jail for NOT PAYING taxes? – No, there is no debtors’ prison. If a taxpayer properly . . .
19. How do I resolve unpaid taxes if my client is a wage earner, self-employed, a business, a corporation? – Each of these situations is unique. Basically INSTALLMENT AGREEMENTS, OFFERS IN COMPROMISE and BANKRUPTCY can all be used to resolve unpaid taxes for these entities. The key is . . .
20. How do I resolve unpaid payroll taxes? – Payroll taxes are considered by the IRS to be the most serious taxes they collect and are aggressively pursued. If your client has not paid payroll taxes for more . . .
21. What can I do about penalties and interest? – Penalties and interest on late-filed tax returns and on unpaid taxes are significant. The Late Filing Penalty can be 25% of the unpaid balance, before credits. There are additional penalties for . . .
22. My client filed and paid his taxes, but now the IRS has issued a CP2000 indicating additional taxes are owed. What do I do? – Many CP2000 Notices that propose additional taxes are incorrect, but . .
23. How do I obtain a bank or wage levy release? – A bank levy is a one-time levy and attaches only to the funds in a bank account at the time the levy is served. . . . Wage levies, on the other hand, are continuous and attach to all future wages until . . .
24. If I prefer to refer my client to an experienced tax negotiator, how do I find one? - First, congratulations on realizing that tax delinquency resolution calls for unique techniques and strategies. Most tax professionals think that tax delinquency requires the expertise of an attorney. However, a noted tax litigation consultant stated, . . .
25. Does my client need an attorney? – Many taxpayers and tax professionals think that tax delinquency requires the expertise of an attorney. However, . . .