Frequently Asked Questions

 No.  All business is done through phone, fax, email, and mail with taxpayers across the USA.  If you are close to any of our office locations, feel free to set an in-person appointment. 

 The IRS has been understaffed for over 10 years, yet they are considered the most powerful collection agency in the world. General phone lines will always continue to deter taxpayers from calling. Licensed tax professionals have access to specific IRS phone lines solely dedicated to them and access to a variety of tax software as well, for instant communication. One of the many benefits of hiring a licensed tax professional. 

 Generally, cases in which a tax has been assessed within the applicable statutory period of limitations on assessment, a proceeding in court to collect the tax may be commenced, or a levy to collect the tax may be made, within 10 years after the date of assessment. Obviously, the IRS will do everything in its power to collect the debt before the expiration date. 

Everything dealing with any Fresh Start Initiative is based on qualifications. Income, assets, and all other financials must show your inability to pay back the tax debt. The application process is overwhelming, so it’s best to work with a tax professional to ensure the best outcome.

These programs are highly effective and are life changing when applied to property by tax resolution specialists.

 Yes, but you have to “qualify” for an abatement of such penalties and interest. The IRS offers the First-Time Penalty Abatement policy (See Tax Glossary for eligibility) for taxpayers as well as standard abatements for extenuating circumstances suffered during the tax years in question. A few examples are mental or physical health, natural disasters, and/or loss of a spouse or child. 

 ​If you did not have any prior issues with the IRS (multiple years that you owe), the IRS will normally send 5 letters before a levy is issued in this sequence:  CP14, CP501, CP503, CP504, and LT11/L1058. The last letter (the LT11 or L1058) is the Final Notice of Intent to Levy. 30 days after that notice, the taxpayer can be levied. 

 Once a lien is filed, the taxpayer must pay the balance to remove the lien (I.e. get a lien release).  The taxpayer can appeal a lien filing (up to 30 days after the lien is filed) if the lien will cause them hardship (i.e. lose their job because of the lien).  Taxpayers can request lien withdrawal if they can pay their balance under $25,000 and get into a direct debit installment agreement. After three payments, the IRS will allow the taxpayer to request lien withdrawal. 

 You run the risk of enforced collection – that is, a lien and/or levy.   Also, if you owe (taxes, interest, and penalties) more than $53,000 (adjusted annually each November for inflation), the IRS may send a notice to you and the State Department that you have seriously delinquent tax debt.  The State Department can use this information to restrict, deny, or revoke your passport.  Also, the IRS can send your account for private debt collection. 

​The IRS will send a notice that shows the type and amount of penalties assessed.  However, the taxpayer can also review their account transcript for the year in question.  The account transcript will show the amount of assessed late filing and accuracy penalties.  The account transcript will also show the initial assessed failure to pay penalty.  Taxpayers who have unpaid balances need to contact the IRS directly to get the current accrued amount of the failure to pay penalty.

 ​Interest abatement is rare and difficult to qualify for.  It usually requires that the IRS delayed processing of a request that caused additional interest to be owed.  However, if the taxpayer is successful in abating a penalty, the associated interest on the unpaid penalty is also abated. 

 ​FTA applies to three types of penalties: failure to file, failure to pay, and failure to deposit.  FTA does not apply to accuracy penalties and estimated tax penalties.  FTA applies to most income tax returns (1040, 1120, 1120S, 1065) and employment tax returns (940, 941).  FTA does not apply to event-based returns such as estate and gift tax returns.  FTA also does not apply to late filing of tax-exempt returns (Forms 990 and 990-T). 

 ​10 years from the date of assessment.  If your 2018 return was assessed on June 1, 2019, the statute is June 1, 2029.  There are several actions that can extend the collection statute. These actions extend the statute to collect because the IRS is prohibited from collection enforcement during the time of the action.  For example, if a taxpayer files bankruptcy, an offer in compromise, or has a pending installment agreement, the collection statute is extended during these time period (plus a certain amount of time afterwards) because the IRS cannot enforce collection during these actions. 

​Simple – the IRS writes off the amount of tax owed.  Taxpayers can confirm that old balances are written off by reviewing their IRS account transcript for the year in question.

 ​First, each year is likely to have its own collection statute expiration date (CSED).   If you owe for multiple years, there are likely multiple CSEDs. Also, if you have an additional assessment in a year (I.e. for an audit or underreporter notice), the new assessment will have its own CSED date.  The only way to find out the CSED is to call the IRS and ask. Your online IRS account and IRS transcripts do not provide CSED information. 

Simple, the IRS will assess the additional tax, penalties, and interest and then proceed to enforce payment. Ignoring an audit is never a good idea.