THE NATION’S LEADING EXPERTS IN TAX NEGOTIATION & MEDIATION

Citizens or Residents living in the United States, with a financial interest of signature authority over accounts overseas with combined balance(s) of over $10,000. Certain exemptions apply.

The IRS requires that the FBAR be filed to properly report any foreign assets and potential income generators.

The deadline to file the FBAR is June 30th of the following year. For example, the 2015 FBAR (FinCen 114) is due on June 30, 2016.

Yes, beginning in 2015 an extension can be filed for the FBAR through October 15th

The FBAR is filed electronically.

An OIC allows a taxpayer to settle the tax liability owed for less than the full amount owed when it can be shown that the taxpayer cannot pay the liability within the time the IRS has to collect it. The program is designed for taxpayers experiencing a demonstrated financial hardship, as defined by the Internal Revenue Manual.

If an Offer is accepted, the tax liabilities existing at the time of the acceptance are considered paid-in-full after payment of an agreed upon Offer Amount. Ultimately, all outstanding balances are eliminated after the Offer is accepted and paid.

An Offer in Compromise analysis is highly fact-driven and dependent on your personal financial circumstances. To determine if you qualify, you should speak with a professional about your current financial situation. It is best to have information readily available regarding your income, personal expenses and assets at the time you speak with a professional to make the most of your consultation.

After an Offer is accepted and you make payment on your Offer Amount, your remaining tax balance is eliminated. Any outstanding federal tax liens on your former balances will be released within approximately 45 days of your Offer being paid.

If the IRS has issued a levy to your employer, you may be able to have the levy released or modified upon demonstrating that you are in a financial hardship or you fit other criteria set forth in the Internal Revenue Manual.

When the IRS issues a Notice of Levy to your employer, your employer is required to notify you and provide you an opportunity to notify the IRS of your household size. The IRS can garnish all, but a certain exemption amount from your wages each pay period until the levy is released. Your exemption amount depends on the size of your household.

If you can demonstrate your circumstances meet the criteria set forth in the Internal Revenue Manual, you may be able to have your garnishment released or modified. A professional representative can help make an effective case to the IRS quickly and assist in resolving your financial emergency as expediently as possible.

For a self-employed individual, the IRS can issue a Notice of Levy to a source of the taxpayer’s income. You may be able to have the levy released or modified upon demonstrating that you are in a financial hardship or you fit other criteria set forth in the Internal Revenue Manual.

When the IRS issues a Notice of Levy to your source of income, 100% of the funds due to you at the time the notice is received can be seized by the IRS.

If you can demonstrate your circumstances meet the criteria set forth in the Internal Revenue Manual, you may be able to have your garnishment released or modified to a different amount. A professional representative can help make an effective case to the IRS quickly and assist in resolving your financial emergency as expediently as possible.

Yes, the IRS is required to notify the spouse with whom you filed the joint return that you have requested relief.

There are various factors that the IRS will review in determining if you are an innocent spouse.

Some, but not all, include your marriage status, whose income the liability stemmed from, did you sign the return, did you know, etc.

If you already have a balance with the IRS, then your refund will be applied to the tax debt first. If there is are any funds remaining the IRS will send you a check.

Yes, the IRS will accept your tax return even if you cannot pay. The IRS charges penalties for failure to file and failure to pay. Thus, if you file your return timely, then you can avoid this penalty.

A lien attaches to your current and future assets, such as real property. Liens can also affect your creditworthiness. Liens frequently will continue to exist after a taxpayer files bankruptcy.

Liens will be released upon the full payment of the tax liability secured by the lien. The IRS will release your lien within 30 days of payment of the tax liability. Settling your tax liability through an Offer in Compromise can also serve as a means to release your liens if all Offer terms are met.

Liens and levies are both collection tools for the Internal Revenue Service; however, they operate differently. A lien is a claim to a taxpayer’s property because the taxpayer owes a tax debt. A levy involves the actual seizure of a taxpayer’s property to pay the tax liability.

If you can show that it is in the best interest of both the taxpayer and the government, liens can also be discharged, subordinated or withdrawn. If your circumstances qualify, these methods can help you sell your home, refinance your mortgage or simply improve your creditworthiness.

Usually, the IRS only has 10 years (120 months) to collect on a liability from the date of assessment.

Yes, under specific circumstances, the IRS can toll the statute date, so that the CSED is extended. A few examples are if you file an Offer in Compromise (OIC), or file an Appeals Hearing.

No, once the CSED has passed on a specific year’s liability the IRS is not allowed to collect on that year. However, the IRS will rarely tell you about the CSED, and its best to consult a representative to ensure the IRS has the correct CSED date in place.

Example 1. Taxpayer files the 2011 Tax Return timely, on April 15, 2012. When he files, he has an unpaid balance of $10,000. The IRS will have until April 15, 2022 to collect on the balance for the 2011 Tax Year.

Example 2. Taxpayer files the 2012 Tax Return late, on July 20 2014. When he files, he has an unpaid balance of $14,000. The IRS will have until July 20, 2024 to collect on the 2012 Tax Year.

If the IRS has issued a levy to your bank, you may be able to have the levy released or modified upon demonstrating that you are in a financial hardship or fit other criteria set forth in the Internal Revenue Manual.

When a bank receives a Notice of Levy from the Internal Revenue Service, it is required to remove all of the available funds from your bank account. However, the bank is also required to hold onto your funds for 21 days before it remits the payment to the IRS. If you can demonstrate to the IRS that you are in a financial hardship (or have other grounds under the Internal Revenue Manual to release the funds), you may be able to have the funds released back to you. A professional representative can help make an effective case to the IRS quickly and assist in resolving your financial emergency before your 21 day window elapses.

Per the Internal Revenue Manual, the IRS permits a one-time waiver of certain penalties based on a taxpayer’s good compliance. The IRS calls this program “1st Time Penalty Abatement” and it allows a taxpayer to request an administrative waiver of one tax periods penalty fees based solely on a history of good compliance. This means you can request abatement of penalties charged to a single tax period provided the three prior tax years [all quarters] were timely filed and paid. This option does not require you to meet any standard of reasonable cause, but instead only looks for a good taxpaying history.

The primary method of receiving penalty abatement from the IRS is to establish reasonable cause as to why you were not timely with your tax returns. The IRS has criteria allowing taxpayers to petition for penalty abatement based on extenuating circumstances, or what the IRS deems “reasonable cause.” To qualify for reasonable cause penalty abatement you must successfully demonstrate there was no willful neglect and that your hardships had a direct relation to the inability to timely file/pay your taxes.

Reasonable cause criteria with the IRS can include events such as extreme medical hardship, fraud perpetrated upon you by a CPA/licensed tax preparer, natural disaster, etc.

It is important to pay the current taxes. The IRS will not be able to help resolve any issues, unless you have filed all returns and are making all the required deposits currently.

Yes, these taxes are known as trust fund recovery penalties. Owners, members and other individuals can be held personally liable for these unpaid taxes.

The IRS has four (4) different types of installment agreements:

• Streamlined
• A streamlined installment agreement has the following requirements:
  • The tax liability, interest, and penalties do not exceed $25,000;
  • The balance can be paid off within 60 months; and
  • The proposed payment is equal to or greater than the “minimum acceptable payment” (the minimum acceptable payment is the greater of $25 or the minimum payment amount reached by dividing the tax liability, interest, and penalties by 50)
  • *The taxpayer must pay a fee of $105 to set up the installment agreement.

• Fresh Start
• A Fresh Start installment agreement has the following requirements:
  • The tax liability, interest, and penalties do not exceed $50,000;
  • The balance can be paid off within 72 months; and
  • The proposed payment is equal to or greater than the “minimum acceptable payment” (the minimum acceptable payment is the greater of $25 or the minimum payment amount reached by dividing the tax liability, interest, and penalties by 50)
  • *The taxpayer must pay a fee of $105 to set up the installment agreement and installment agreement must be setup as a direct debit installment agreement.

• Partial Payment

A partial payment agreement allows the IRS to enter into agreements with taxpayers for the partial payment of a tax liability. To qualify for this arrangement, the taxpayer must complete a financial statement using Form 433-F to report income and living expenses. The IRS will review and verify the information. If the taxpayer has assets that can be sold to pay some of the tax debt, the IRS will require the taxpayer to provide additional information. If approved, the taxpayer will be required to participate in a financial review every two years. This review may result in the increase in installment payments or the termination of the agreement.

• Full-payment

If a taxpayer can make monthly payments to the IRS, a non-streamlined agreement is an option. The IRS will not automatically approve this agreement; instead, the taxpayer must negotiate with the IRS. The taxpayer must file Form 433-F, Collection Information Statement. This form collects information about income, debts, living expenses, assets, accounts, and allows the taxpayer to propose an installment payment amount. It will usually take a few months for the IRS to review a proposed payment plan. The IRS may refuse a proposed agreement if it considers some of the taxpayer’s living expenses unnecessary, if untruthful information was provided, or if the taxpayer failed to complete a prior installment arrangement.

It depends. Liens can, and often will, be filed by the IRS once a taxpayer’s debt has exceeded $10,000. The IRS engages in this practice as a routine security measure to protect its interest in the monies owed to them by the taxpayer. However, in certain cases, where the IRS has yet to file a lien and the taxpayer has established either a Streamline or Fresh Start installment agreement, the IRS will refrain from filing any tax liens.

Once a taxpayer has established an installment agreement the IRS no longer pursues enforced collection action (bank levies, wage garnishments, etc.). This is predicated on the fact that the taxpayer will keep up with the payment arrangement and comply with all future filing and payment responsibilities.

The duration of any installment agreement will be determined by the type of payment plan established (see above). However, it is important to note, a payment plan will never exceed the Collection Statute Enforcement Date (or CSED) — all payment arrangements are limited by the corresponding CSED.

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To the untrained eye, these Account Transcripts can seem to be in a different language. Tax Defense Partners has over 18 year of experience with transcript analysis and will decipher your IRS taxpayer history so that you are well informed and can take the necessary steps to resolve your IRS tax matter. Our Transcript Analysis service includes a breakdown of active IRS demand letters, penalties and interest you’ve accrued, any tax liens filed or released, the Collection Statute Expiration Date (the Government’s right to pursue timeframe), your IRS payment history and if you are under audit or will be in the near future.

The Transcript Analysis is a gateway into the IRS’s current and future actions with taxpayers who have years of unfiled tax returns or have a heavy tax burden. It provides the exact information that the IRS has – critical information that is useful in developing the key components to a permanent resolution to a personal or business tax problem. As the IRS states, “IRS transcripts are often used to validate income and tax filing status for mortgage applications, student and small business loan applications, and during tax preparation.” Clearly, Taxpayer transcripts contain very useful information, and you should know what the IRS knows about you.

Anyone can obtain their taxpayer transcript from the IRS government website, however, obtaining it quickly and deciphering it can be complicated. The best course of action is to obtain your transcript with the help of experienced tax resolution experts such as Tax Defense Partners. With your authority, our certified tax professionals will immediately pull your record and inform you on what the IRS is most likely to do next regarding your tax problem. We’ll step into your shoes and head-off the IRS from actions that could inhibit the continuance of your economic life.