Articles Posted in Back Taxes

Two events must occur before the IRS may begin collections activity:

• First, the tax must be assessed and due. The tax may be shown on a tax return showing a balance due, an audit closing agreement, an audit deficiency that was not contested, an SFR substitute for return filed by IRS or a Tax Court judgment.

• Second, the IRS must give the taxpayer a Notice of Tax Due and Demand for Payment, which will request payment within 10 days. The notice is usually mailed to the taxpayer. Generally, if the taxpayer does not respond and the liability is for individual income taxes and the liability is small, the IRS will send a series of notices and attempt to make telephone contact with the taxpayer.

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Generally, the statute of limitation for collection expires 10 years after the date the tax was assessed (for tax assessed after November 5, 1990). For tax assessed before November 5, 1990, the statute of limitation for collection is six years. This period may be extended by an agreement between the taxpayer and IRS. In addition, there are numerous circumstances which suspend the running of the statute of limitation for some period of time. For example, the statute of limitation is suspended during the 90-day period after the issuance of a Notice of Deficiency and for an additional 60 days thereafter.

Note: The IRS does not necessarily have to collect the tax during this period, but does have to take collection action (e.g., levy or begin court proceedings) before this time has expired.

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The IRS may seize all property and rights to property (except for exempt property), whether the property is real or personal, tangible or intangible, belonging to any taxpayer who neglects or refuses to pay back taxes, or any property on which there is a tax lien for payment of any tax.

Get professional IRS representation. Our firm represents taxpayers before all administrative levels of the IRS.

Please call us at 1-877-788-2937 or email us to schedule an appointment.

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Do you owe the IRS unpaid back taxes? Have they sent you many letters but you did not respond?

There are still options.

CDP – Collection due process.

If the time to respond to an IRS collection notice has passed, you, the taxpayer, or your power of attorney / representative, may file a request for an equivalent hearing if you failed to make a timely request for a Collection Due Process (CDP) hearing (after receiving a Notice and Opportunity for Hearing upon Filing of Notice of a Federal Tax Lien or a Notice and Opportunity for Hearing Prior to Levy). The equivalent hearing will be held by the Appeals Office and will follow the procedures that are used for CDP hearings.

Get professional IRS representation. Our firm represents taxpayers before all administrative levels of the IRS.

Please call us at 562-204-6700 or email us to schedule an appointment.

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Are you a business owner or an officer facing a 941 payroll or employment tax problem?

Unpaid payroll or employment tax is a serious tax matter, and the IRS holds the business owner, officers and other personnel as responsible person(s) and actively enforce aggressive collection measures to collect on the unpaid back taxes, penalties and interest.

For the IRS to excuse the penalty for failing to file, the taxpayer must show that such failure was due to reasonable cause. A taxpayer can show reasonable cause by proving that he or she “exercised ordinary business care and prudence and was nevertheless unable to file the return within the prescribed time” (see Reg. §301.6651-1(c)(1)). This standard is objective and will be determined by analyzing all the facts and circumstances.

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Mike Habib, EA tax firm provides a wide range of tax preparation, tax planning, tax representation and consulting services. We professionally prepare individual and business tax returns including Federal, State and e-filing. Clients come to us for expert assistance with any tax notice or IRS problem. We serve Pico Rivera, El Monte, CA and other surrounding cities.

Please call us at 562-204-6700 or email us to schedule an appointment.

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No one really wants to get themselves into the situation of owing back taxes. Unfortunately, it happens; and it happens most often when people are going through a difficult time including facing unemployment, life and relationship changes, and even medical problems. The present state of the economy certainly isn’t making it easier. However, the Internal Revenue Service recently launched the Fresh Start program to give taxpayers relief – if they are willing to get compliant by filing all of their taxes, and work with the agency to resolve their back tax debt to the extent they are able.

Get back tax help now by calling us at 1-877-78-TAXES [1-877-788-2937].

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If you haven’t paid back taxes, penalties, or interest – you may be able to work with us to apply for an Offer in Compromise (OIC) with the IRS in order to get compliant, alleviate your issues with the IRS collectors, and move forward. An OIC is an agreement to settle your tax liabilities for less than the full amount owed. The good news is that it may be easier than you think. In the spring of 2012 the IRS modified their offer in compromise guidelines, in an effort to work with struggling taxpayers, making it much more favorable to the taxpayer.

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When it comes to choosing a tax professional to resolve a tax problem, represent you before the IRS, or handle complex tax issues, it is important to work with someone with the experience and expertise to deal with your situation effectively. You need to find someone you can rely on and trust. There are a lot of people out there claiming to be “the best,” so how do you choose? Here are some things to keep in mind when looking for the right person to handle your taxes.

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