If your Offer in Compromise has been approved, you need to make sure the IRS does not revoke your Offer. At all costs, make sure that you:
•File your taxes on-time for the next five years.
•If you cannot file by April 15th, request an automatic extension. Definitely file your taxes by the extension deadline.
•Pay your taxes on-time. If you owe, your taxes must be paid in full by April 15th. Make estimated payments or extension payments to make sure you don't have a balance due.
If the IRS revokes your Offer in Compromise, they will reinstate the full amount of your tax liability, add on penalties and interest, and begin aggressive collection efforts.
Showing posts with label bressman law. Show all posts
Showing posts with label bressman law. Show all posts
Wednesday, August 4, 2010
Tuesday, August 3, 2010
Three Types of Offer In Compromises
The IRS may accept an offer in compromise based on three grounds:
1. Doubt as to Collectibility - Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
Example: A taxpayer owes $20,000 for unpaid tax liabilities and agrees that the tax she owes is correct. The taxpayer’s monthly income does not meet her necessary living expenses. She does not own any real property and does not have the ability to fully pay the liability now or through monthly installment payments.
2. Doubt as to Liability - A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include: (1) the examiner made a mistake interpreting the law, (2) the examiner failed to consider the taxpayer’s evidence or (3) the taxpayer has new evidence.
Example: The taxpayer was vice president of a corporation from 2004-2005. In 2006, the corporation accrued unpaid payroll taxes and the taxpayer was assessed a trust fund recovery penalty as a responsible party of the corporation. The taxpayer was no longer a corporate officer and had resigned from the corporation on 12/31/2005. Since the taxpayer had resigned prior to the payroll taxes accruing and was not contacted prior to the assessment, there is legitimate doubt that the assessed tax liability is correct.
3. Effective Tax Administration - There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
Example: Mr. & Mrs. Taxpayer have assets sufficient to satisfy the tax liability and provide full time care and assistance to a dependent child, who has a serious long-term illness. It is expected that Mr. and Mrs. Taxpayer will need to use the equity in assets to provide for adequate basic living expenses and medical care for the child. There is no doubt that the tax is correct.
1. Doubt as to Collectibility - Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
Example: A taxpayer owes $20,000 for unpaid tax liabilities and agrees that the tax she owes is correct. The taxpayer’s monthly income does not meet her necessary living expenses. She does not own any real property and does not have the ability to fully pay the liability now or through monthly installment payments.
2. Doubt as to Liability - A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include: (1) the examiner made a mistake interpreting the law, (2) the examiner failed to consider the taxpayer’s evidence or (3) the taxpayer has new evidence.
Example: The taxpayer was vice president of a corporation from 2004-2005. In 2006, the corporation accrued unpaid payroll taxes and the taxpayer was assessed a trust fund recovery penalty as a responsible party of the corporation. The taxpayer was no longer a corporate officer and had resigned from the corporation on 12/31/2005. Since the taxpayer had resigned prior to the payroll taxes accruing and was not contacted prior to the assessment, there is legitimate doubt that the assessed tax liability is correct.
3. Effective Tax Administration - There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
Example: Mr. & Mrs. Taxpayer have assets sufficient to satisfy the tax liability and provide full time care and assistance to a dependent child, who has a serious long-term illness. It is expected that Mr. and Mrs. Taxpayer will need to use the equity in assets to provide for adequate basic living expenses and medical care for the child. There is no doubt that the tax is correct.
Monday, June 21, 2010
TRAUMATIC BRAIN INJURY
When a physical force damages the brain, it's known as a traumatic brain injury.
In the United States, it’s estimated that 1.5 million people will sustain a Traumatic Brain Injury each year.
Traumatic brain injury is caused by a sudden blow to the head; either the head strikes an object, or an object strikes the head. And what it does is, it causes the brain to actually shift within the skull. And that shifting motion causes injury to the brain, either by bruising or by tearing small blood vessels.
Both open and closed head injuries can cause severe brain damage, resulting in the need for immediate medical attention.
To learn more visit www.bressmanlaw.com
In the United States, it’s estimated that 1.5 million people will sustain a Traumatic Brain Injury each year.
Traumatic brain injury is caused by a sudden blow to the head; either the head strikes an object, or an object strikes the head. And what it does is, it causes the brain to actually shift within the skull. And that shifting motion causes injury to the brain, either by bruising or by tearing small blood vessels.
Both open and closed head injuries can cause severe brain damage, resulting in the need for immediate medical attention.
To learn more visit www.bressmanlaw.com
Wednesday, June 16, 2010
Material on Brain Injury Too Hard to Understand?
Nearly all of the survivors of a traumatic head injury and their families with whom I have worked have had one complaint: There is nothing written that explains head injury in clear, easy to understand language. Most say the available material is too medical or too difficult to read. visit www.bressmanlaw.com for more information.
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