There are 2 reasons you can make an Offer in Compromise: Doubt as to Collectibility & Doubt as to Liability, or both. To start the process of an Offer in Compromise for Doubt as to Collectibility you must complete Form 656, which is included in the Form 656-B booklet. To start the process of an […]
Identity Theft
Identity Theft has become a major problem in the US but there are different problems associated with different kinds of ID theft. Identity theft of your credit card or bank information has a different effect on you than someone filing false documents on your behalf with the IRS. Someone could steal your identity in order […]
What is the Definition of an Assessment?
An assessment is the formal recording of a taxpayer’s tax liability. However, this simple definition fails to alert you to the vast division between not owing and owing the IRS, which will bring a myriad of procedural rules to follow. Once the IRS places your debt into their system it is an “assessment” and they […]
The financial disclosure forms required by the IRS
If you owe the IRS they will require your financial disclosure by asking you to complete a “Collection Financial Statement”. The Form to send them is a Form 433. The IRS may even request the Form. (See Notice LT27) There are several varieties of Form 433. The IRS will want to know your income, debts, […]
New IRS video on Audits
Probably no one but me noticed the new IRS video on Audits. The well-funded production includes actors playing IRS agents and taxpayer in sample scenes from an audit. It was actually very well-produced but suggests your duty to cooperate extends to any request they desire. This is simply not true. The video is very misleading […]
