President IRS Solutions Author Loves Taxes Loves Teaching Former Revenue Officer.

Transcription

1 DAVID STONE, E.A.

2 President IRS Solutions Author Loves Taxes Loves Teaching Former Revenue Officer 2

3 In this Session We Will Learn: 1. What tools the IRS has to use 2. What tools are available to the accountant 3. When to suggest a bankruptcy as opposed to an Offer in Compromise 3

4 The tax gap! Estimated to be $458 Billion!!!! Plus our Government has figured out other ways to balance the budget by Assessing Penalties! Note: In FY 2016 the federal deficit was $587 billion

5 Ways to owe the IRS 5

6 What the IRS can do Notices & Letters NFTL (Notice of Federal Tax Lien) Levy Seizure Summons TFRP (Trust Fund Recovery Penalty) Private Collection Agency 6

7 Debtors Prison The United States ostensibly eliminated the imprisonment of debtors under federal law in 1833 leaving the practice of debtors' prisons to states. 7

8 8

9 9

10 2016 Penalties Assessed Number Amount Civil Penalties Assessed Civil Penalties Abated 39,573,561 $ 27,346,036,000 5,236,054 $ 8,995,016,000 10

11 Notice of Federal Tax Lien By filing with this notice with the County Recorders office (Secretary of State for Corporation s/llc s) the lien becomes perfected. By perfecting the lien it helps the IRS to secure their place against competing liens. 11

12 Getting rid of the NFTL!!!! Release Discharge Subordination Withdrawal 1 2

13 There are 6 ways to settle with the IRS 1 3

14 Transcript Delivery System I always like to know what the IRS knows so the best place to start with any case is with a copy of your clients transcripts. 14

15 Analysis & Reporting 15

16 Full Pay Congratulations The IRS loves you J 16

17 Discharge Taxes in Bankruptcy The taxes are income taxes. You did not commit fraud or willful evasion.. The debt is at least three years old. You filed a tax return. You pass the "240-day rule." 17

18 Installment Agreements What is the IRS Looking For? If you're financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement. 1 8

19 Streamlined Installment Agreement Individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to 72 months (six years). IRS has a test program for those owing between $50,000 - $100,000 allowing up to 84 months (7 years) 19

20 What is an offer An offer in compromise (offer) is an agreement between the taxpayer and the IRS that settles a tax debt for less than the full amount owed. 20

21 Offer in Compromise Offers in compromise (thousands) Number of offers received 67,000 63,000 Number of offers accepted 27,000 27,000 Amount of offers accepted $204,748,000 $225,946,

22 Reasons for offer 1. Doubt as to Liability 2. Exceptional Circumstances 3. Doubt as to Collectiblity 22

23 What is CNC! Being currently not collectible means the IRS has determined you cannot afford to pay the debt at this time.! Being currently not collectible does not mean the debt goes away. 2 3

24 What is CNC Penalties and interest will continue to accrue until you have paid off the debt in full. 24

25 Statute of Limitations When it comes to the IRS there are three types of Statute of Limitations 1. ASED Assessment Statute Expiration Date (Audit) Generally, the statute of limitations for the IRS to assess taxes on a taxpayer expires three (3) years from the due date of the return or the date on which it was filed, whichever is later 2. RSED Refund Statute Expiration Date three years to claim a tax refund -PERIOD 3. CSED Collection Statute Expiration Date 25

26 Collection Statute Expiration Date The statute of limitations on how long the IRS can pursue collections. Generally, the IRS is restricted by a 10 year Collection Statute of Limitations. This means individuals or businesses who owe back taxes that are ten years or older may not legally be sued in a court of law for those tax obligations. 26

27 CSED Tolling Events (Extenders) Filing of an Offer in Compromise Bankruptcy (for taxes not discharged) Military deferment Leaving the country for at least 6 months Certain collection due process hearings Filing for Innocent Spouse Relief Requesting a taxpayer assistance order 27

28 Easy to Use Forms Notice Response Download IRS Transcripts Analyze clients options Saves hours each day Available in English & Spanish 28

29 DAVID STONE, E.A.