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The CSED information is on the transcripts. The collection period typically begins when the tax in question is assessed. The CSED date ends at the end of the collection statute. Keep in mind that several occurrences can extend the collection statute, pushing back the CSED date. If you call the IRS practitioner Priority Line (“PPL”) [...]
Our textbook The Ultimate Guide to Tax Resolution provides the descriptions relating to most if not all of the transcript codes.
To amend a return add 240 ADDITIONAL days to the waiting period necessary to include tax liability in a bankruptcy so it would not make sense to amend a return for that reason. However, if your client had an IRS return audited and additional tax was assessed, you will probably want to amend the State [...]
That is true but you can request the lien be removed post bankruptcy; usually negotiating a compromised payoff amount.
Filing a bankruptcy (“BK”) prevents the IRS from collecting against your client for the period the BK is pending plus 30 days. You should only enter them into an installment agreement prior to a BK if there is substantial time for the IRS to collect (i.e. years) before the BK can be filed.
You should consult a bankruptcy attorney for a definitive answer but there has been cases in which taxes assessed from an SFR where not dischargeable.
Stop work. Then wait to see if the client changes their mind and decides to pay you. If not you may revoke the POA. If there is no impending activity we typically wait up to 6 months unless the client requests we do so sooner.
The IRS will not know to advise resending a Power of Attorney unless (1) you contact them to discuss a client or (2) you send a Power of Attorney that is incorrect, incomplete, or does not encompass a broad enough spectrum. If any of the above occur the IRS will ask for an updated Power [...]
Yes. Typically the IRS can span a few years forward.
No. A single CAF must be obtained by a representative (one per representative) prior to speaking with the IRS. The number assigned is representative-specific and will stay with the representative as long as he or she remains in practice.
Yes. Either the company can submit an in-business Offer in Compromise if they remain in business (these are difficult to get accepted) or the individual/s assessed Civil Penalty stemming from the unpaid payroll taxes may submit individual offers.
Yes. CNC status may be obtained by a business and/or individual with liability stemming from payroll taxes.
The IRS 10-year collection statute begins when a liability is assessed. This holds true for the Trust Fund Recover Penalty as well.
A board member would not be liable (considered a “responsible person”) unless the board member directly participated in the decision not to pay the payroll taxes or if the board member knowing that payroll taxes were owed, directed the company to pay other items in lieu of paying the payroll taxes.
The new signor would not be responsible in theory; however, in practice if the IRS summons the bank signature card and the new signor’s name exists, he or she may have to show via a 4180 interview that they were not a responsible person. This should be easy to prove but lack of defending oneself [...]
Yes, The taxpayer may enter into CNC status for liability stemming from a trust fund penalty assessed.
The answer to this question depends on the circumstances. Assuming the business is no longer in operation, you should wait until the Trust Fund Recovery Penalty (“TFRP”) has been assessed to the “Responsible Person/s” in the form of Civil Penalty and negotiate either an installment agreement or Offer in Compromise based not upon what is [...]
The answer is no. The Trust Fund Recovery Penalty (“TFRP”) will be assessed as a Civil Penalty prior to the IRS commencing any collection activity against the responsible person(s). The Client would request CNC status during the collection process and not before. If your client is determined to qualify, they will be placed into CNC [...]
Yes, the IRS accepts Offers in Compromise stemming from payroll tax liability. Yes they use the same criteria assuming the offer is based upon doubt as to collectability. The likelihood of an offer being accepted is not determined by the source of the liability unless issues such as fraud are involved.
The answer is yes assuming the business is still in operation. You would negotiate an installment agreement on behalf of the business entity and ask for the individuals to be excluded under IRS IRM “Status 63″. If the business entity is no longer operating your client would be best served waiting for the personal assessments [...]
The company (if it is still operating) is responsible. Beyond that it depends on who was considered a “Responsible Person” via a 4180 interview. If the IRS knew that the president (who since left) made the decision not to pay the tax, he or should would likely be held responsible. In addition, unless they were [...]
The 10-year statute of limitations on collection applies to an individual’s Civil Penalty stemming from the Trust Fund Recovery Penalty (“TFRP”) in the same manner as it does for income taxes. Keep in mind that the IRS can “passively” collect beyond the statute if they filed a perfected tax lien.
Status 63 refers to requesting that the IRS not collect the Trust Fund (Civil Penalty) portion of payroll tax liability from the “Responsible Persons” when they have entered into an installment agreement with the Company. This is applicable for payroll taxes but I would not hesitate to ask for it in other cases (such as [...]
