Martin Cantu, EA - Tax Consultant - Tax Relief Services Blog

  The IRS announced this week that it was providing about $1 billion in penalty relief to taxpayers who should have received collection notices during the pandemic - specifically applying to 2020 and 2021 tax returns.  The Press Release   has several nuggets beyond the headline penalty relief. These nuggets provide guidance on several topics. Among the interesting items: Quoting from the Press Release - Given this unusual situation, the IRS is taking several steps in advance of resuming normal collection notices for tax years 2020 and 2021 to help taxpayers with unpaid tax bills, including some people who have not received a notice from the IRS in more than a year. (Italics added). This penalty relief is automatic. Eligible taxpayers don't need to take any action to get it. Eligible taxpayers who already paid their full balance will benefit from the relief, too; if a taxpayer already paid failure-to-pay penalties related to their 2020 and 2021 tax years, the IRS wil...

  What to Expect During Your IRS Appointment: A Step-by-Step Guide Dealing with the Internal Revenue Service (IRS) can be an intimidating experience for many people, especially if it's your first time. Whether you're facing an audit or simply need to resolve a tax issue, it's natural to feel nervous and unsure about what to expect. Fortunately, with a bit of preparation and a clear understanding of the process, you can approach your IRS appointment with confidence. In this step-by-step guide, we'll walk you through what to expect during your IRS appointment, from the initial scheduling to the final resolution of your tax issue. We'll cover everything from what documents to bring with you to how to handle difficult questions from the IRS agent. So if you're feeling anxious about your upcoming IRS appointment, take a deep breath and read on – we've got you covered. Types of IRS appointments The IRS offers different types of appointments depending on the ...

  Preface – COVID changed many things for many people – working from home and staffing shortages among them. Now, as employers are living in a post-COVID world, things are getting back to normal. Workers are returning to their offices and staffing levels are back at normal levels.  This also holds true for the IRS. Their staffing levels are back at pre-COVID numbers, and they are finished processing the incredible back-log of returns they’ve had for the last couple of years. This means that Collection letters are back, as well as stepped-up compliance enforcement levels.  Be proactive and contact me today to get in front of your IRS issues.  As the old adage goes, there are only two things certain in life: death and taxes. For many taxpayers, however, the latter can be a source of significant stress and anxiety. This is particularly true for those who find themselves with delinquent tax accounts, facing the prospect of penalties and interest charges that can quickly...

  Chapter 4 – Filing Details/Payment Terms/Important Consequences IRS FORM 656 – OFFER IN COMPROMISE Use IRS form 656, Offer in Compromise to submit your offer. You can access the form via this link .   Be sure to read the accompanying booklet. Note that there are different forms of Form 433, Collection Information Statement, that are a part of the submission process. Form 433-A is for use by Wage Earners and Self-Employed Individuals. Form 433-B is used by Businesses. Also note that there is a specific form, 656-L, for use if you are claiming doubt as to liability. The IRS site also has a pre-qualifier tool. But don’t get too upset if it reports that you are not eligible. The tool does not take into account any special circumstances or other issues that may be relevant to your situation. Please refer back to this section of my Blog for a more detailed discussion of this issue.   Who Can File An Offer? An Offer in Compromise (OIC) can be filed by any individ...

  OFFER IN COMPROMISE: THE PROCESS FOR MAKING AN OFFER   “… (the IRS) OIC program that is itself full of compromises, as the needs of the tax system as a whole are balanced against the needs of the individual taxpayers.” Professor Bryan Camp, Lessons From the Tax Court: The Concept of Reasonable Collection Potential, August 16, 2021.       General Overview Prior to getting too far into the weeds here, you as the taxpayer should keep in mind that an Offer in Compromise is not the only way to resolve your tax debt. An Enrolled Agent, taking all the factors into account, can assist you with alternatives. Going through the OIC, even if the offer is not accepted, can identify other potential avenues for resolution. An Enrolled Agent specializes in this role. The process of submitting an Offer in Compromise (OIC) to the IRS can be complex and time-consuming. Here is a general overview of the process: ·          ...

  I’ve spent some time researching Offers in Compromise lately, especially the provision providing for an OIC under the “ Doubt as to Collectability with Special Circumstances” (DATC-SC) provision. As I’ve researched OICs in general and the DATC exceptions specifically, I’ve began to see some parallels with baseball. Stay with me for second. First, and on a purely unscientific basis, my bet is that many tax pros are also baseball fans. Further, I sense a close affiliation with the new baseball metrics and the willingness to wade into the tax code on   regular basis. For those non-baseball fans, the Michael Lewis book and the movie Moneyball demonstrates the value of a baseball grinder versus that of high money free agent that a team will overpay for years and years.   Its about looking at the numbers and not what your eyes tell you. Quoting the Billy Beane, the subject of the book and movie, “We are card counters at the blackjack table, and we’re going to turn the odds...