Payment with No Agreement There are some advantages to simply paying the IRS without a payment agreement, i.e, “Voluntary Payment”. For one, you can designate which year to apply the payments. This is helpful if you owe for multiple years & need to favor a particular year. But, the IRS will keep pestering you […]
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, […]
With Friends Like the IRS, Who Needs Enemies?
At various times your “friends” at the IRS will send you notices attempting to get information or to promote some benefit that may apply to you. But, you should slow down & explore your options before you act. Unclaimed Money The IRS might ask for returns with the allure of unclaimed money in your IRS […]
Proving a Financial Hardship
Essentially, you will prove your financial hardship with the documentation which supports the entries you provide on the Form 433A which the IRS will request of you. This information can be used for a Penalty Abatement Request, to prove Uncollectible Status or to induce acceptance of an Offer in Compromise. For starters, you must diligently […]