Do you want to go through a Collections Appeals Program or CAP Hearing?
If you choose to go through this CAP process, then you cannot go to Court on the Appeals' decision.
CAP procedures are available to you if you've received any one of the following notices:
Notice of Federal Tax Lien ,
Notice of Levy ,
Notice of Seizure ,
Denial or Termination of Installment Agreement
CAP Procedures
If your only collection contact has been a notice or telephone call:
Call the IRS telephone number shown on your notice
Explain why you disagree and that you want to appeal the decision
Be prepared to offer a solution
Before you can come to Appeals you will need to first discuss your case with a Collections manager.
If you have been contacted by a Revenue Officer:
Call the Revenue Office you've been dealing with
Explain why you disagree and that you want to appeal the decision
Be prepared to offer a solution
Before you can come to Appeals you will need to discuss your case with a Collections manager.
Complete Form 9423, Collection Appeals Request
You have 2 days from your conference with the Collections manager to submit Form 9423 to the Revenue Officer.
Call Effectur to help anser your questions about taxes you owe or how to deal with the Appeals Process and the IRS.
Showing posts with label Collections. Show all posts
Showing posts with label Collections. Show all posts
Monday, September 15, 2008
Monday, September 8, 2008
IRS Collections and Your Options for Appeal
Before you prepare a request for Appeals, you need to decide if Appeals is the place for you. Select the appropriate appeal procedure for specific instructions on preparing your request for Appeals. If you decide you want to present your dispute to Appeals, you will need to prepare a request for Appeals and mail it to the office that sent you the decision letter.
Collection Appeals Program (CAP)Collection Appeals Program (CAP) is generally quick and available for a broad range of collection actions. However, you can’t go to court if you disagree with the Appeals decision.
Collection Due Process (CDP)Collection Due Process (CDP) is available if you receive one of the following notices:Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320 (Lien Notice), a Final Notice - Notice of Intent to Levy and Notice of Your Right to A Hearing, a Notice of Jeopardy Levy and Right of Appeal, a Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing (Levy Notices), and a Notice of Levy and Notice of Your Right to a Hearing. If you disagree with the Appeals decision, you may be able to take your case to court.
Offer in Compromise (OIC)An Offer in Compromise (OIC) is an agreement between the taxpayer and the government that settles a tax liability for payment of less than the full amount owed.
Trust Fund Recovery Penalty (TFRP)If you are a person responsible for withholding, accounting for, or depositing or paying specified taxes including non-resident alien (NRA) withholding and employment taxes, and willfully fail to do so, you can be held personally liable for a penalty equal to the full amount of the unpaid trust fund tax, plus interest. A responsible person for this purpose can be an owner or officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. A trustee or agent with authority over the funds of the business can also be held responsible for the penalty.
There are many options that the taxpayer has to resolve their tax issues. This can all be very confusing and overwhelming. Think of calling a tax professional to help you out in this very hard time. The can give you advice and answer many of your questions.
Collection Appeals Program (CAP)Collection Appeals Program (CAP) is generally quick and available for a broad range of collection actions. However, you can’t go to court if you disagree with the Appeals decision.
Collection Due Process (CDP)Collection Due Process (CDP) is available if you receive one of the following notices:Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320 (Lien Notice), a Final Notice - Notice of Intent to Levy and Notice of Your Right to A Hearing, a Notice of Jeopardy Levy and Right of Appeal, a Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing (Levy Notices), and a Notice of Levy and Notice of Your Right to a Hearing. If you disagree with the Appeals decision, you may be able to take your case to court.
Offer in Compromise (OIC)An Offer in Compromise (OIC) is an agreement between the taxpayer and the government that settles a tax liability for payment of less than the full amount owed.
Trust Fund Recovery Penalty (TFRP)If you are a person responsible for withholding, accounting for, or depositing or paying specified taxes including non-resident alien (NRA) withholding and employment taxes, and willfully fail to do so, you can be held personally liable for a penalty equal to the full amount of the unpaid trust fund tax, plus interest. A responsible person for this purpose can be an owner or officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. A trustee or agent with authority over the funds of the business can also be held responsible for the penalty.
There are many options that the taxpayer has to resolve their tax issues. This can all be very confusing and overwhelming. Think of calling a tax professional to help you out in this very hard time. The can give you advice and answer many of your questions.
Sunday, September 7, 2008
Preparing a request for your Appeal
Review the letter and publication(s) that were sent to you by the IRS department making the decision.
These will tell you:
How to prepare a request for an appeal (protest)
Where to mail the request
When the request must be received
What information you need to include in the request for an appeal
For specific information appealing Examination issues, refer to the Examination page.
For specific information appealing Collection issues, refer to the Collection page.
FILING A REQUEST FOR APPEALS DOES NOT STOP INTEREST AND PENALTIES FROM ACCRUING
Interest and certain penalties will continue to accrue during the Appeals process and during any subsequent Appeals to the Courts on any amount not paid. In order to stop the accrual of interest and penalties on proposed adjustments, refer to Notice 1016, How to Stop Interest. For an explanation on how to stop interest from accruing on an unpaid balance, refer to Publication 594, What You Should Know About the IRS Collection Process.
These will tell you:
How to prepare a request for an appeal (protest)
Where to mail the request
When the request must be received
What information you need to include in the request for an appeal
For specific information appealing Examination issues, refer to the Examination page.
For specific information appealing Collection issues, refer to the Collection page.
FILING A REQUEST FOR APPEALS DOES NOT STOP INTEREST AND PENALTIES FROM ACCRUING
Interest and certain penalties will continue to accrue during the Appeals process and during any subsequent Appeals to the Courts on any amount not paid. In order to stop the accrual of interest and penalties on proposed adjustments, refer to Notice 1016, How to Stop Interest. For an explanation on how to stop interest from accruing on an unpaid balance, refer to Publication 594, What You Should Know About the IRS Collection Process.
Preparing for your Hearing
Examination
Before you prepare a request for Appeals, you need to decide if Appeals is the place for you. If you decide you want to present your dispute to Appeals, you will need to prepare a request for Appeals and mail it to the office that sent you the decision letter.
Preparing A Request For Appeals
Small Case Request
You prepare a small case request instead of a written protest if the total amount for any one tax period is $25,000 or less.
Send a letter requesting Appeals consideration.
Indicate the changes you do not agree with and the reason you don’t agree.
For specific guidance in preparing a small case request/protest, refer to Form 12203, Request for Appeals Review.
Formal Written Protest:
Prepare a formal written protest for all of the following situations:
If the total amount for any one tax period is greater than $25,000.
Employee plan and exempt organization cases without regard to the dollar amount at issue.
Partnership and S corporation cases without regard to the dollar amount at issue.
To prepare a formal written request for Appeals you must:
Include your name, address, social security number, and daytime telephone number.
Include a statement that you want to appeal the IRS findings to the Appeals office.
Include a copy of the letter showing the proposed changes and findings you don’t agree with (or the date and symbols from the letter).
Indicate the tax periods or years involved.
List all the changes you do not agree with and why you don’t agree.
State the facts supporting your position on any issue that you do not agree with.
Cite the law or authority, if any, on which you are relying.
Sign the written protest under the penalties of perjury.
You can represent yourself in Appeals, and you may bring another person with you to support your position. If you want to be represented by someone, the person you choose to represent you must be an attorney, a certified public accountant, or an enrolled agent authorized to practice before the IRS.
Before you prepare a request for Appeals, you need to decide if Appeals is the place for you. If you decide you want to present your dispute to Appeals, you will need to prepare a request for Appeals and mail it to the office that sent you the decision letter.
Preparing A Request For Appeals
Small Case Request
You prepare a small case request instead of a written protest if the total amount for any one tax period is $25,000 or less.
Send a letter requesting Appeals consideration.
Indicate the changes you do not agree with and the reason you don’t agree.
For specific guidance in preparing a small case request/protest, refer to Form 12203, Request for Appeals Review.
Formal Written Protest:
Prepare a formal written protest for all of the following situations:
If the total amount for any one tax period is greater than $25,000.
Employee plan and exempt organization cases without regard to the dollar amount at issue.
Partnership and S corporation cases without regard to the dollar amount at issue.
To prepare a formal written request for Appeals you must:
Include your name, address, social security number, and daytime telephone number.
Include a statement that you want to appeal the IRS findings to the Appeals office.
Include a copy of the letter showing the proposed changes and findings you don’t agree with (or the date and symbols from the letter).
Indicate the tax periods or years involved.
List all the changes you do not agree with and why you don’t agree.
State the facts supporting your position on any issue that you do not agree with.
Cite the law or authority, if any, on which you are relying.
Sign the written protest under the penalties of perjury.
You can represent yourself in Appeals, and you may bring another person with you to support your position. If you want to be represented by someone, the person you choose to represent you must be an attorney, a certified public accountant, or an enrolled agent authorized to practice before the IRS.
Requesting an Appeals Conference or Hearing
Once you determine if you want to appeal your determination, you are ready to request an Appeals conference or hearing if you can explain why you disagree.
Consider the following:
If you need help in deciding whether the IRS made an incorrect decision due to misinterpreting the law, check the publications discussing your issue(s) for additional information, or refer to Tax Topics.
If you believe the IRS did not properly apply the law due to a misunderstanding of the facts, be prepared to clarify and support your position refer to the Examination page.
If you believe the IRS is taking an inappropriate collection action against you, or you do not agree with Collection's denial of your offer in compromise, refer to the Collections page.
If you believe the facts used by the IRS are incorrect, then you should have records or other support available to back up your position.
Getting help with this kind of action against the IRS is a good idea. There are several options when it comes to choosing a firm to help you out.
Consider the following:
If you need help in deciding whether the IRS made an incorrect decision due to misinterpreting the law, check the publications discussing your issue(s) for additional information, or refer to Tax Topics.
If you believe the IRS did not properly apply the law due to a misunderstanding of the facts, be prepared to clarify and support your position refer to the Examination page.
If you believe the IRS is taking an inappropriate collection action against you, or you do not agree with Collection's denial of your offer in compromise, refer to the Collections page.
If you believe the facts used by the IRS are incorrect, then you should have records or other support available to back up your position.
Getting help with this kind of action against the IRS is a good idea. There are several options when it comes to choosing a firm to help you out.
Thursday, August 28, 2008
How Long do I Have to Pay?
How long does the IRS have to collect the money that I owe them?
I get this question every day. Most people believe that they will have to pay on their taxes for the rest of their lives.
When you file a tax return and owe money and don’t pay the balance, the IRS will assess you your tax. They will send you a balance due statement and want to collect. The IRS establishes a collection statue expiration date from the date the tax was assessed. The collections statute expiration date, or CSED, is 10 years and one month long. Although the IRS can re-assess the tax for another 10 years, it is rare that they do. Once the expiration date has passed, the tax “falls off” and you will not owe that tax anymore.
There are a few things that can extend your CSED's. Filing for bankruptcy will extend the expiration date for the time between filing and having your bankruptcy discharged. Making an Offer in Compromise will extend the the CSED also. Any time spent living outside the United states or serving over seas in the military will also extend your CSED's.
To find out where you stand with your CSED’s and to get many more questions answered about the IRS and taxes you owe call a reputable tax resolution firm.
I get this question every day. Most people believe that they will have to pay on their taxes for the rest of their lives.
When you file a tax return and owe money and don’t pay the balance, the IRS will assess you your tax. They will send you a balance due statement and want to collect. The IRS establishes a collection statue expiration date from the date the tax was assessed. The collections statute expiration date, or CSED, is 10 years and one month long. Although the IRS can re-assess the tax for another 10 years, it is rare that they do. Once the expiration date has passed, the tax “falls off” and you will not owe that tax anymore.
There are a few things that can extend your CSED's. Filing for bankruptcy will extend the expiration date for the time between filing and having your bankruptcy discharged. Making an Offer in Compromise will extend the the CSED also. Any time spent living outside the United states or serving over seas in the military will also extend your CSED's.
To find out where you stand with your CSED’s and to get many more questions answered about the IRS and taxes you owe call a reputable tax resolution firm.
How to deal with the IRS
In my time working for a tax resolution firm, I have found out many things regarding the IRS and taxpayers. Many people believe that the IRS is out to get them and will make it difficult for the them to resolve their situation. The IRS will do little to go over all your options for a resolution. The IRS is the biggest creditor and has ways of collecting money other creditors do not have.
The IRS is the only creditor who has the ability to take money directly out of your bank account and directly out of your pay check. They can even collect from pensions and social security. The IRS can even collect from accounts receivable for businesses who owe a liability. They do this through levies.
Iif you don’t know what you are doing when dealing with the IRS, you will not get the best result possible for yourself. Self representation is no representation. You need people representing you who now how to deal with the IRS and do it hundreds of times per day. They will help you get the best possible outcome that you qualify for.
You don’t go to court without a lawyer, why would you face the IRS without professional representation
The IRS is the only creditor who has the ability to take money directly out of your bank account and directly out of your pay check. They can even collect from pensions and social security. The IRS can even collect from accounts receivable for businesses who owe a liability. They do this through levies.
Iif you don’t know what you are doing when dealing with the IRS, you will not get the best result possible for yourself. Self representation is no representation. You need people representing you who now how to deal with the IRS and do it hundreds of times per day. They will help you get the best possible outcome that you qualify for.
You don’t go to court without a lawyer, why would you face the IRS without professional representation
Wednesday, August 27, 2008
That's not your money!
The IRS takes the civil trust fund very seriously. If you own a business, you know exactly what the civil trust fund is. When you pay employees, the IRS "trusts" you to collect their withholding and FICA taxes. At that point, you have to give that money to the IRS and file a form 941 to reconcile what you have paid the IRS.
What happens a lot of times is a business will get into a cash crunch and not pay their civil trust fund deposits to pay other bills instead. They think they can catch up with it the next month and when that doesn't happen, the next. Slowly they realize that they are now behind 3 months and have not filed their form 941. The IRS sees this as stealing. This is not unpaid taxes of the business; instead, it is other people's money that was intended to pay their own taxes, medicare and social security retirement. It must be paid back and in full. The IRS does not negotiate on this type of liability.
This potentially places a business in great jeopardy. By not paying and/or filing for 3 months, they have earned themselves a Revenue Officer, the highest level of collections enforcement the IRS has. It is the Revenue Officer's job to collect the civil trust fund money. They will levy a business to collect the money. They can levy bank accounts and accounts receivables. They can even shut down a business to collect the civil trust fund.
It does not have to be the end of the road for your business. There are ways of handling this situation with the IRS. You need professional representation to help you navigate through these kinds of rough waters. There is help if you want it!
What happens a lot of times is a business will get into a cash crunch and not pay their civil trust fund deposits to pay other bills instead. They think they can catch up with it the next month and when that doesn't happen, the next. Slowly they realize that they are now behind 3 months and have not filed their form 941. The IRS sees this as stealing. This is not unpaid taxes of the business; instead, it is other people's money that was intended to pay their own taxes, medicare and social security retirement. It must be paid back and in full. The IRS does not negotiate on this type of liability.
This potentially places a business in great jeopardy. By not paying and/or filing for 3 months, they have earned themselves a Revenue Officer, the highest level of collections enforcement the IRS has. It is the Revenue Officer's job to collect the civil trust fund money. They will levy a business to collect the money. They can levy bank accounts and accounts receivables. They can even shut down a business to collect the civil trust fund.
It does not have to be the end of the road for your business. There are ways of handling this situation with the IRS. You need professional representation to help you navigate through these kinds of rough waters. There is help if you want it!
The Collections Process and the IRS
The IRS is required by law to follow specific steps when notifying a tax payer of a tax liability. This is the Collections Due Process. The IRS has to follow these rules step for step. They only need to send notices to the last know address of the tax payer.The process starts with a balance due notice, form CP14 or CP11. The balance due notice states how much is due and from which tax year.After 10 days of sending the Balance Due Notice the IRS will send a second notice of demand for payment with form CP 501.10 days after the CP501, a CP503 is sent with the same demand for payment.When all the above notices are ignored, the IRS will send a CP504, Notice of Intent to Levy. This is always sent via certified mail.In most cases a final notice of intent to levy is sent. This is letter L 1058. This step may be skipped by the IRS.If the taxpayer ignores or fails to respond to all the notices, a Levy is placed against the taxpayer and a notice is then sent to the taxpayer informing them of the levy. The Levy Notice is form 668.If you are in IRS collections, you may need help to handle the IRS. You want to act quickly when you start receiving these notices and not wait until you are levied which can leave you with no money that may be used to get help. It is always best to be proactive with the IRS. You want to deal with the IRS on your terms not theirs.
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