Doubt As To Collectability The Offer in Compromise (OIC) for doubt as to collectability is a settlement initiated by a taxpayer based on a snapshot of the taxpayer’s financial situation.  In many cases, taxpayers can settle large tax debts for significantly less than they owe. The IRS will consider a client’s Reasonable Collection Potential (RCP), […]

It is sometimes possible to wipe your tax slate clean at an enormous discount. If you qualify for something known as the offer in compromise, referred to as an “offer” or “OIC,” the IRS will accept less than the amount a taxpayer owes on a tax bill and call it even. There is no legal […]

Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If the amount of income tax withheld from your salary or pension is not enough, or if you receive income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, you may have […]

The IRS has the power to garnish or legally seize any income you make to satisfy federal tax debt or taxes owed. Garnishments can apply to your hourly wages, salary, commissions, and bonuses. The IRS will contact your employer directly and require them to directly send the IRS a portion of your income. Your employer […]

The IRS officially launched the Fresh Start initiative (FSI) in 2011 in order to help taxpayers get a “fresh start” with their tax debt.  The goal of the program was to help taxpayers and small businesses with paying back taxes and avoiding tax liens. It was expanded in 2012, with new changes to existing resolutions […]

Cuts in the IRS budget from $14 billion in 2010 to approximately $12 billion in 2017 have resulted in staff reductions by about one-third during that time frame.  IRS staffing dropped to less than 10,000 agents for the first time since 1953. As a result of the cuts, audit rates have dropped for all income […]

Tax Fraud Blotter Fair Oaks, Calif.: Tax lawyer Hiram M. Martin, 71, who represented retired professional football player Antrel Rolle, has been sentenced to three years in prison today for fraudulently obtaining refunds for Rolle, stealing the refunds and then covering up his scheme by filing false documents with the Internal Revenue Service. Martin, who […]

The IRS Is Now Using Private Debt Collectors. After years of warning taxpayers that the IRS will never cold call you to collect a tax debt, things are about to change as the IRS begins handing over some of its debt-collection work to private firms who probably will call you. This drastic change in practices for […]

A Summary of the IRS Fresh Start Initiative Recently, you may have heard a lot about the Fresh Start Initiative in radio ads, tv advertisements, online and more—like it is some recent change the IRS made. In reality, the IRS officially launched the Fresh Start initiative (FSI) in 2011 in order to help taxpayers get […]

From Accounting Today As IRS budgets and audit staff continue to diminish, audit numbers are at an all-time low. But when you file your clients’ returns, the most common question persists: “How likely am I to be audited?” Taxpayers whose returns stray far away from the norm or have “large, unusual or questionable items” can […]