Wednesday, March 23, 2011
Change of Mailing Address for FOIA Requests
The Internal Revenue Service has almost completed modernizing Freedom of Information Act (FOIA) and Privacy Act case processing with the implementation of AFOIA, Automated Freedom of Information Act.
Due to the volume of correspondence and payments the IRS receives, they have changed the FOIA mailing address. Effective April 1, 2011, the new address for all FOIA correspondence and payments is:
Internal Revenue Service
Disclosure Scanning Operation – Stop 93A
Post Office Box 621506
Atlanta, GA 30362-3006
AFOIA allows the IRS to centralize receipt of requests and electronically process and distribute them throughout the country.
Tuesday, March 15, 2011
Can the IRS Save on Postage?
We recently received three envelopes from the IRS that measured 10 inches by 15 inches. Each envelope contained a one page letter. The postage on the envelopes was $00.88, $1.05, and $2.41. Is it really necessary to place a one page letter in such a large envelope and expend more than $00.44 for the postage? Regular postage would have saved $3.02.
Thursday, February 24, 2011
IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start; Major Changes Made to Lien Process
WASHINGTON — In its latest effort to help struggling taxpayers, the Internal Revenue Service today announced a series of new steps to help people get a fresh start with their tax liabilities. See IR-2011-20
The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
“We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” IRS Commissioner Doug Shulman said. “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.”
Today’s announcement centers on the IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include:
• Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
• Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
• Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
• Creating easier access to Installment Agreements for more struggling small businesses.
• Expanding a streamlined Offer in Compromise program to cover more taxpayers.
“These steps are in the best interest of both taxpayers and the tax system,” Shulman said. “People will have a better chance to stay current on their taxes and keep their financial house in order. We all benefit if that happens.”
This is another in a series of steps to help struggling taxpayers. In 2008, the IRS announced lien relief for people trying to refinance or sell a home. In 2009, the IRS added new flexibility for taxpayers facing payment or collection problems. And last year, the IRS held about 1,000 special open houses to help small businesses and individuals resolve tax issues with the Agency.
Today’s announcement comes after a review of collection operations which Shulman launched last year, as well as input from the Internal Revenue Service Advisory Council and the National Taxpayer Advocate.
Tax Lien Thresholds
The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at certain dollar levels for people with past-due balances.
The IRS plans to review the results and impact of the lien threshold change in about a year.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money.
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter. A lien can affect a taxpayer's credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
“Raising the lien threshold keeps pace with inflation and makes sense for the tax system,” Shulman said. “These changes mean tens of thousands of people won’t be burdened by liens, and this step will take place without significantly increasing the financial risk to the government.”
Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
• Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
• The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
• The IRS will also withdraw liens on existing Direct Debit Installment greements upon taxpayer request.
Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.
“We are trying to minimize burden on taxpayers while collecting the proper amount of tax,” Shulman said. “We believe taking away taxpayer burden makes sense when a taxpayer has taken the proactive step of entering a direct debit agreement.”
Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
“Small businesses are an important part of the nation’s economy, and the IRS should help them when we can,” Shulman said, “By expanding payment options, we can help small businesses pay their tax bill while freeing up cash flow to keep funding their operations.”
Offers in Compromise
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
Related Items:
• IRS Begins Tax Season 2009 with Steps to Help Financially Distressed Taxpayers; Promotes Credits, e-File Options (IR-2009-2)
• IRS Speeds Lien Relief for Homeowners Trying to Refinance, Sell (IR-2008-141)
The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
“We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” IRS Commissioner Doug Shulman said. “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.”
Today’s announcement centers on the IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include:
• Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
• Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
• Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
• Creating easier access to Installment Agreements for more struggling small businesses.
• Expanding a streamlined Offer in Compromise program to cover more taxpayers.
“These steps are in the best interest of both taxpayers and the tax system,” Shulman said. “People will have a better chance to stay current on their taxes and keep their financial house in order. We all benefit if that happens.”
This is another in a series of steps to help struggling taxpayers. In 2008, the IRS announced lien relief for people trying to refinance or sell a home. In 2009, the IRS added new flexibility for taxpayers facing payment or collection problems. And last year, the IRS held about 1,000 special open houses to help small businesses and individuals resolve tax issues with the Agency.
Today’s announcement comes after a review of collection operations which Shulman launched last year, as well as input from the Internal Revenue Service Advisory Council and the National Taxpayer Advocate.
Tax Lien Thresholds
The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at certain dollar levels for people with past-due balances.
The IRS plans to review the results and impact of the lien threshold change in about a year.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money.
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter. A lien can affect a taxpayer's credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
“Raising the lien threshold keeps pace with inflation and makes sense for the tax system,” Shulman said. “These changes mean tens of thousands of people won’t be burdened by liens, and this step will take place without significantly increasing the financial risk to the government.”
Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
• Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
• The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
• The IRS will also withdraw liens on existing Direct Debit Installment greements upon taxpayer request.
Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.
“We are trying to minimize burden on taxpayers while collecting the proper amount of tax,” Shulman said. “We believe taking away taxpayer burden makes sense when a taxpayer has taken the proactive step of entering a direct debit agreement.”
Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
“Small businesses are an important part of the nation’s economy, and the IRS should help them when we can,” Shulman said, “By expanding payment options, we can help small businesses pay their tax bill while freeing up cash flow to keep funding their operations.”
Offers in Compromise
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
Related Items:
• IRS Begins Tax Season 2009 with Steps to Help Financially Distressed Taxpayers; Promotes Credits, e-File Options (IR-2009-2)
• IRS Speeds Lien Relief for Homeowners Trying to Refinance, Sell (IR-2008-141)
Tuesday, January 11, 2011
Currently Non Collectible
Many times a taxpayer cannot pay taxes that are owed. These taxpayers are in a hardship situation. Not only can they not pay the IRS, but they cannot pay their ordinary expenses. In addition, these taxpayers may have delinquent tax returns. In the past when a taxpayer was seeking currently non collectible status, the IRS required these taxpayers to file all delinquent tax returns. That has now changed. A taxpayer who has delinquent tax returns and is entitlted to currently non collectible status, ill not have to file their delinquent tax returns. See IRM 8.22.2.4.2
Monday, January 10, 2011
Taxpayer Advocate Annual Report to Congress
Monday, January 3, 2011
Why?
Over the past few weeks I have kept notes on some of my contacts with the IRS, and I have questions. There are probably no answers to some of these questions. I would be interested in knowing what some of our readers have experienced.
Why Does Voice Mail Give You Only Eight Seconds to Leave a Message? In a recent call to an IRS number, the message was simple: “You have eight seconds to leave a message.” Obviously there was not enough time to even give my name and number, much less leave a message. I called back several times believing this was an error, but got the same message each time.
Why Do IRS Employees Not Provide an Alternate Number on Voice Mail? The voice mail recording provided by IRS employees on the majority of calls do not provide an alternate number or person to call.
Why When the IRS Calls Me Do I Have to Verify My Information? I do not understand why when the IRS calls a representative we have to go through a question and answer session about our CAF number, name, address, etc. It seems that this is a waste of everyone’s time.
Why When Talking to ACS and You Ask a Question Are You Placed on Hold? Many times when dealing with ACS on the phone we are placed on hold after asking a question. It seems like the IRS has to get approval before the question can be answered.
Why Do Representatives Receive So Many Forms and Notices? As a representative, when I receive notices from the IRS there are generally forms included. This seems like a waste of money. It would seem more efficient if the IRS would just refer to their website advising that the forms are available there. If the IRS is ceasing to send Form 1040, they should consider not including forms in letters to representatives.
Why Do Some Units of the IRS Not Understand Notices That Are Sent? Many times I have called the number on a notice or letter only to be told by the IRS person with whom I am speaking that they do not know what the letter means.
Why Does the IRS Not Give the Correct Number to Call on Its Notices? Recently I called the number on an IRS notice which reflected a large amount owed by the client. I was told by the first person I spoke with that their unit only handled cases up to $25,000. I was transferred to someone else who advised they also could not handle the case, and was again transferred to someone else.
Why Does the IRS Call at 9:00 p.m. and Leave a Message? Recently someone from the IRS left a message at my office at 9:00 p.m. and asked that the call be returned. Of course the call was not returned until the next day, at which time there was no one to speak with since I only got a voice mail recording.
Why are Calls to the IRS Not Returned? Many messages are left more than once before a call is returned. This is a good reason for all IRS voice mail recordings to have an alternate number to call.
Why Do We Not Get a Confirmation on CNC? Many collection cases are resolved over the phone with the IRS agreeing to classify the case as currently not collectible. However, the IRS is inconsistent as to whether they will send correspondence confirming a case has been classified as CNC.
Why Does ACS Refuse to Let Us Speak With a Manager? ACS refuses to let representatives speak with a manager. The response is they will have the manager call. The manager rarely or never calls. Mostly never.
Why Does the IRS Fail to Respond to Correspondence? Just like failure to respond to some phone calls, many letters written to the IRS do not receive a response. This requires additional time for the representative to resend the correspondence.
Why Can We Not Speak to IRS Employees Who Work From Home? I do not have a problem with IRS employees working from home. But if the IRS is going to allow this, there should be a phone number where the employee can actually be reached, rather than one at the IRS office.
Why Does the IRS Not Include the Enclosure it Refers to in Letters? We receive letters from the IRS that say a document is enclosed. However, in a number of cases nothing is enclosed. This causes phone calls to the IRS to determine what was supposed to be enclosed.
Why Do We Have to Wait So Long On the Phone? Calling the IRS can be frustrating in that in most cases we are on hold for a long period of time. The IRS should look at how American Express handles its incoming calls. There is rarely a wait.
Why Are Letters Dated After the Date We Receive Them? Often we receive a letter that is dated several days after it is received. Is there some reason the IRS cannot date a letter the date it is actually sent?
Why Do IRS Employees Not Read Letters Before They Are Sent? We have received letters from the IRS that make no sense. These are mostly form letters.
Why Does Appeals Not Have the Revenue Officer’s Files in a Collection Due Process Case? We are experiencing cases where the Revenue Officer’s files do not get to Appeals when a CDP request is made. This means that in most cases the financial information has to be recreated for Appeals.
Why When You Make a Call to the IRS and Are On Hold For a Long Time a Message Advises You to Call Back Later? It would be more efficient when calling the IRS if you were initially told to call later. We have experienced cases where after a long hold, we are finally told to call back later.
Why When Contacting the IRS Does it Feel Like Traveling the World - Philidelphia, Detroit, and New York? You may not get to take a real trip, but you do sometimes feel like you do when talking with the IRS. After being transferred to several different cities, there will finally be someone to talk with.
Why Does the IRS Not Use E-mail? I understand the concern of the IRS about security. However, I do not believe that e-mail is any less secure than a fax. Many times faxes are sent to a central fax machine where anyone can get the information. In this case, e-mail would be more secure.
The above is not intended to be critical of IRS personnel, but of the system. There are nice people in the IRS. Recently, after two hours of trying to speak with someone about a tax matter, I spoke to one of the nicest women I have ever talked to. She was very helpful.
Saturday, September 11, 2010
IRS Appeals Conference
IRS Appeals Conference
Tax Alliance Conference Wednesday, November 3, 2010
Only $40 Through 11/1/2010
ADDISON CONFERENCE CENTRE
15650 Addison Rd. Addison, TX 75001
Meet & Greet the decision makers! Hear both sides of the issues! Topics Include: Overview of Appeals; Preparing Effective Protests; Innocent Spouse Update; Offers In Compromise; Collection Due Process Workshop; Overview of Fast Track Settlement; Panel Discussion; Q&A
Register Now! Tax Alliance Conference
Price includes 6 hours of CPE, (MCLE pending) continental breakfast, and lunch!
Seating is limited, so be sure to register early!
For more details click here! Tax Alliance Conference
Tax Alliance Conference Wednesday, November 3, 2010
Only $40 Through 11/1/2010
ADDISON CONFERENCE CENTRE
15650 Addison Rd. Addison, TX 75001
Meet & Greet the decision makers! Hear both sides of the issues! Topics Include: Overview of Appeals; Preparing Effective Protests; Innocent Spouse Update; Offers In Compromise; Collection Due Process Workshop; Overview of Fast Track Settlement; Panel Discussion; Q&A
Register Now! Tax Alliance Conference
Price includes 6 hours of CPE, (MCLE pending) continental breakfast, and lunch!
Seating is limited, so be sure to register early!
For more details click here! Tax Alliance Conference
Tuesday, June 8, 2010
Lantz Issue on Appeal in Other Circuits
The Lantz issue is on appeal in the 3rd and 2nd Circuits with a number of cases pending in the Tax Court.
Lantz Decision Reversed by the 7th Circuit
The 7th Circuit today reversed the Tax Court decision in Lantz. Lantz held that there was not a two year rule for filing an innocent spouse claim under Section 6015(f) of the Code. The 7th Circuit opinion can be found here.
Friday, May 7, 2010
2009 Whistleblower Report Released
The 2009 Whistleblower Report to Congress has been released and be found here.
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