Offer In Compromise - OIC Category Archives — Page 4 of 10 — Tax Relief Blog Published by IRS Tax Relief — Tax Attorney — Tax Audit Representation

Taxpayer Advocate Report

July 10, 2010 | Mike Habib, EA

National Taxpayer Advocate Submits Mid-Year Report to Congress; Identifies Priority Challenges and Issues for Upcoming Year

WASHINGTON — National Taxpayer Advocate Nina E. Olson today released a report to Congress that identifies the priority issues the Taxpayer Advocate Service (TAS) will address during the coming fiscal year. The report expresses concern about the adequacy of IRS taxpayer service, particularly as the IRS begins to implement health care reform, about new information reporting burdens facing small businesses and others, and about certain IRS collection practices.Among the areas the report identifies for particular emphasis in FY 2011 are the following:1. Taxpayer Services.

Spending for IRS taxpayer service programs has been declining in recent years. At the same time, more taxpayers have been contacting the IRS for assistance as the IRS has been tasked with administering an increasing number of social benefit programs, including Economic Stimulus Payments, Making Work Pay credits, and First-Time Homebuyer credits. The report says that as a result of the imbalance between taxpayer demand and IRS resources, the IRS has fallen short of providing adequate taxpayer service in important areas. Most notably, after answering a high of 87 percent of its calls from taxpayers seeking to reach a telephone assistor in FY 2004, the IRS answered only 53 percent of its calls in FY 2008 and has set of goal of answering only 71 percent in the current fiscal year.

Tax Relief – Get tax debt relief today

June 19, 2010 | Mike Habib, EA

Tax Relief – Get tax debt relief today

Reasonable Cause/Good Faith Defense: Even if the taxpayer did not have substantial authority for a position and failed to make adequate disclosure, the substantial understatement penalty does not apply if the taxpayer had reasonable cause for the tax underpayment and acted in good faith [IRC Sec. 6664(c); Reg. 1.6664-4]. This defense is applied on a “facts and circumstances” basis [Reg. 1.6664-4(b)]. However, the key factor seems to be whether the taxpayer made a reasonably energetic attempt to determine the correct tax liability. For example, an honest misunderstanding of fact or law, an isolated computational error, reliance on professional tax advice, or reliance on information returns all indicate reasonable cause/good faith. However, if the taxpayer should have known better, the defense will not apply.

Observation: According to IRM 20.1.5.6, the most important factor in determining whether the taxpayer has reasonable cause and acted in good faith is the extent of the taxpayer’s effort to report the proper tax liability. For example, reliance on erroneous information reported on an information return indicates reasonable cause and good faith, provided the taxpayer did not know or have reason to know that the information was incorrect. Similarly, an isolated computational or transcription error may indicate reasonable cause and good faith. Other factors to consider are the taxpayer’s experience, knowledge, sophistication, education, mental and physical condition, and reliance on the advice of a tax advisor.

Back Tax Help

April 23, 2010 | Mike Habib, EA

IRS Examples of Tax Nonfiler Investigations – Fiscal Year 2010

Mike Habib, EA 877-788-2937

The following examples of Nonfiler investigations are excerpts from public record documents on file in the court records in the judicial district in which the cases were prosecuted.

IRS Problem Solver

April 17, 2010 | Mike Habib, EA

IRS Problem Solver – Solutions to tax problems

Tax relief expert and IRS Problem Solver, Mike Habib, states that taxation doesn’t have to be taxing! Your right to deal with the IRS by yourself carries the right to hire and solicit assistance and representation on your behalf. This is what is usually and commonly done, especially because dealing with the IRS is frustrating and intimidating for the normal taxpayer which is the essence of retaining an experienced IRS Problem Solver. The IRS Problem Solver can either be an Enrolled Agent, CPA or Tax Attorney. These tax professionals are commonly known IRS Problem Solvers, Tax Resolution Specialists, or Tax Relief Specialist.

Before knowing what an IRS problem solver is, we must first know what an IRS Problem is. Yes, these are matters relating to problems on taxes or problems encountered with the IRS either because you have back taxes, discovered deficiency in tax payment or Tax Debt, conflicting records of income and expenses when compared to IRS records discovered from other sources such as employers payroll record or other financial institution.

2010 Tax Help

April 12, 2010 | Mike Habib, EA

Important tax developments in the first quarter of 2010

IRS Tax Relief

While the new law tax changes in the health reform legislation and the hiring legislation were the most significant developments in the first quarter of 2010, many other tax developments may affect you, your family, and your livelihood. These other key developments in the first quarter of 2010 are summarized below. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable.

Tax Debt Settlement Help

March 10, 2010 | Mike Habib, EA

Today is the first day of the rest of your life. If things haven’t been going well lately, get a fresh start with a fresh attitude. The best is yet to come! Michael Josephson, of Character Counts.

Tax debt settlement help – get reliable tax relief

If you find yourself unable to comprehend the complexities of paying off your tax debts, then you need to get tax debt settlement help from a tax expert. Tax debt relief settlement help entails finding an experienced enrolled agent who is a tax relief expert to help you come up with the best solution for your tax problem. There are many tax negotiation companies these days offering tax debt settlement help that many people are inclined to believe that these firms are tax relief scams. Truth be told, it only takes the right choice of tax debt settlement company, enrolled agent or tax advisor to help you with your tax problem.

SoCal Tax Help

January 7, 2010 | Mike Habib, EA

Southern California Tax Relief Services

IRS tax Relief, FTB tax Relief, BOE tax Relief, EDD tax relief

At Mike Habib, EA, a SoCal tax firm, we understand that being notified that your tax return is being challenged by the IRS or the FTB can be scary. When you are faced with an audit, or a collection action, by the IRS, or the FTB, you may not know where to turn or what to do. We have the skill set and representation expertise to deal with the IRS and the FTB on your behalf. We understand their rules and are experienced in negotiating the lowest possible tax debt settlement allowed by law.

IRS Tax Lien, How to release federal tax liens and levies

December 21, 2009 | Mike Habib, EA

IRS Tax Lien – How to release federal tax liens and levies

Taxpayers have the right to appeal the IRS’ filing of a notice of a tax lien in the public record and petition for release. If filed in error, the IRS must release the lien and state that the lien was erroneous. The request for tax relief must be based on one of the following grounds: (1) the tax liability had been satisfied before the lien was filed; (2) the assessing of the tax liability violated either the notice of deficiency procedures or the Bankruptcy Code; or (3) the limitations period for collecting the liability had expired prior to the filing of the lien.

The IRS may withdraw a tax lien before payment in full if:

IRS enforcement figures

December 17, 2009 | Mike Habib, EA

Table 16. Delinquent Collection Activities, Fiscal Years 2005-2008

[Money amounts are in thousands of dollars.]

Activity

2005

2006

2007

2008

(1)

(2)

(3)

(4)

Returns filed with additional tax due:

Total amount collected [1]

[r] 27,615,348

[r] 29,172,915

[r] 31,952,399

28,465,648

Taxpayer delinquent accounts (thousands):

Number in beginning inventory

5,981

6,478

7,074

8,240

Number of new accounts

5,870

6,100

7,146

7,099

Number of accounts closed

5,373

5,504

5,980

6,107

Ending inventory:

Number

6,478

7,074

8,240

9,232

Balance of assessed tax, penalties, and interest [2]

57,594,901

69,555,590

83,488,988

94,357,717

Returns not filed timely:

Delinquent return activity:

Net amount assessed [3]

22,765,462

23,305,535

30,287,802

24,888,918

Amount collected with delinquent returns

3,584,255

3,905,764

3,968,163

3,773,528

Taxpayer delinquency investigations (thousands) [4]:

Number in beginning inventory

3,022

3,658

3,874

3,732

Number of new investigations

2,558

2,373

2,587

1,972

Number of investigations closed

1,922

2,157

2,729

2,271

Number in ending inventory

3,658

3,874

3,732

3,433

Offers in compromise (thousands) [5]:

Number of offers received

74

59

46

44

Number of offers accepted

19

15

12

11

Amount of offers accepted

325,640

283,746

228,975

200,103

Enforcement activity:

Number of notices of Federal tax liens filed

522,887

629,813

683,659

768,168

Number of notices of levy served on third parties

2,743,577

3,742,276

3,757,190

2,631,038

Number of seizures

512

590

676

610

[r]–Revised.

[1] Includes previously unpaid taxes on returns filed plus assessed and accrued penalties and interest. For Fiscal Year 2008, includes a total of $37,254,116 (dollars) collected by private debt collection agencies.

[2] Includes assessed penalties and interest but excludes any accrued penalties and interest. Assessed penalties and interest—usually determined simultaneously with the unpaid balance of tax—are computed on the unpaid balance of tax from the due date of the return to the date of assessment. Penalties and interest continue to accrue (accrued penalties and interest) after the date of assessment until the taxpayer’s balance is paid in full.

[3] Net assessment of tax, penalty, and interest amounts (less prepaid credits, withholding, and estimated tax payments) on delinquent tax returns secured by Collection activity.

[4] A delinquency investigation is opened when a taxpayer does not respond to an IRS notice of a delinquent return.

[5] An offer in compromise (OIC) is a binding agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. An OIC will not be accepted if the IRS believes the liability can be paid in full as a lump sum or through a payment agreement.

NOTES: Detail may not add to totals because of rounding. All amounts are in current dollars.

SOURCE: Small Business/Self-Employed, Collection Planning and Analysis, Collection National Reports SE:S:C:PA:CNR

Tax Relief Second Opinion

September 18, 2009 | Mike Habib, EA

Thinking of hiring a $5000 tax attorney?

HOLD IT.

If you do not qualify for an IRS Offer in Compromise, an attorney CANNOT help you.