INDIVIDUAL FEDERAL AND STATE TAX LAW REPRESENTATION

The IRS' Criminal Investigation Division (CID) is responsible for the investigation of individuals who have committed federal tax crimes, and referring those individuals to the Department of Justice's Tax Division for prosecution.  A taxpayer can greatly benefit from the from an advocate that can provide guidance and representation. 

The IRS may place a taxpayer in Currently Non Collectible (CNC) status with approval by the IRS after negotiation when the taxpayer cannot pay the taxes based upon their financial situation and IRS' collection standards.  In CNC the taxpayer will not be required to make payments on the tax liability unless his/her financial situation changes.

The Federal District Court has the ability to hear tax cases when the tax liability in dispute has been paid in full or the taxpayer is seeking a refund of tax.  A taxpayer that believes that the IRS has erroneously determined a tax liability can pay the proposed tax liability in full and then file a suit in Federal District Court requesting a refund of said payment.

A negotiated monthly installment agreement (IA) based upon the tax liability owed and the taxpayer's ability to pay.  An installment agreement will prevent adverse collection action by the IRS in the form of levy in order to collect the tax liability.

Non-filers are individuals required to file tax returns under the tax law but fail to file a return.  If a taxpayer does not file said past due tax returns the IRS can prepare a Substitute for Return (SFR).  SFRs often do not include the exemptions and deductions that the taxpayer is entitled to under the law, and will not reflect that the taxpayer is entitled to a refund.  An attorney can assist the taxpayer in filing past due tax returns, and determining the best options in handling any liabilities related to said unfiled tax returns.

Offer in Compromise (OIC) is an IRS program that allows the IRS to assist in tax collection for tax liabilities that may never be settled.  This program allows a taxpayer to offer to settle his/her tax liability for less than he/she owes.  The IRS will review the taxpayer's income, assets, and future earning potential in connection with the owed tax liability.  The IRS can also take into account financial hardship and extenuating circumstances in determining whether or not to accept the settlement.

 A negotiated monthly installment agreement based upon the tax liability owed, taxpayer's ability to pay, and the time period by law that the IRS has to attempt to collect.  The taxpayer may be able to pay the tax liability in monthly installments in an amount that is less that the taxpayer owes.

There are certain circumstances in which a taxpayer may be eligible for abatement of tax penalties which can reduce or eliminate penalties owed.

The IRS generally has ten (10) years to collect a tax liability.  After the statute of limitations for collection has passed the IRS is generally required to stop collection.  There are, however, many actions that the taxpayer may take that will toll, or stop, the collection statute of limitations for that period of time.  The collection statute of limitations should be taken into account when negotiating with the IRS.

An IRS appeal is an appeal made to a special department of the IRS which reviews appeals for issues involving examination and collection.  The IRS Appeals division can also be involved in cases before the United States Tax court.

A percentage of tax returns are audited each year by the IRS.  Receiving an examination letter from the IRS is often frightening to taxpayers.  Simply because a taxpayer is audited does not mean that the taxpayer has done anything wrong; however, it is important that the taxpayer present the IRS with the necessary information to ensure a favorable resolution.  An experienced advocate can assist in avoiding or minimizing exposure to tax deficiencies assessed, or recorded, by the IRS.

If the IRS has assessed, or recorded, a tax liability is owed by the taxpayer then the IRS can and will attempt to collect from the taxpayer.  The IRS can adversely take property, including real property, banking accounts, and wages, in order to collect the tax liability.  Taxpayers in collection can benefit from an advocate that knows what options are available to the taxpayer to allow the best option for the taxpayer to be negotiated.

After receiving notices from the IRS regarding past due tax liabilities, the IRS can levy, or take, assets, including money in checking, savings, and retirement accounts, and earned wages, in collection of the tax liability owed to the IRS.  The best way to prevent the IRS from taking adverse collection action is to be proactive in negotiating with the IRS to resolve the tax liability.

A federal tax lien is a public notice that the taxpayer owes money to the IRS.  The lien will be recorded in the public records of the county of the taxpayer's residence and in each county where the taxpayer owns property.  The lien will also be recorded on the taxpayer's credit report.  The lien allows the IRS to be a secured creditor, thus providing the IRS with a legal right to the taxpayer's assets.  In order to sell or transfer the asset with clear title the IRS must be paid in full.

Tax settlements are referring to an Offer in Compromise (OIC).  An OIC is a settlement which allows an eligible taxpayer to settle their federal tax debt for an amount which is less than the amount owed.  The IRS will review the taxpayer's income, assets, and future earning potential in determining whether to accept the offered compromise amount.

A penalty to assist the IRS in collecting back payroll taxes.  Payroll taxes are taxes held "in trust" by an employer for payment to the government, including wage withholding.  The IRS can assess and collect payroll taxes from any individual within the corporation that is determined by the IRS to have been willful and responsible for the nonpayment, and an individual may be automatically responsible depending upon his/her position in the company.

The United States Tax Court is a court of record established under the United States Constitution.  If the IRS determines that a taxpayer owes a deficiency a petition can be filed with the United States Tax Court in order to dispute the deficiency.  Certain disputes involving tax liabilities under $50,000 can be conducted under the simplified small case procedure.