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 […]
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 […]
Responding to IRS Math Error Notices
When the IRS documents differ from what you placed on the return, they will send you any one of the many notices sent by the IRS for a “Return Error” or “Math Error”. Essentially, you will have to investigate to resolve this problem. Often, the notice will have a list of items the IRS says […]
