Tuesday, September 9, 2008

Your Real Options….

In previous blogs, I have mentioned that a U.S. taxpayer has 21 resolution options within the IRS tax law. The 21 resolutions can be broken down into 5 major categories (I will cover the different categories in further detail in future blogs). Most of the time, these resolutions can be combined to resolve your tax debt. Therefore, you will want to consult a professional when evaluating all of these options. Some of these areas are extremely technical, and the IRM (Internal Revenue Manuel) is extremely strict on the rules and regulations for many of these options. Below you will find the 21 resolutions listed under each specific category. Again, we will touch on these more in depth within upcoming blogs.

Tax Abatement Programs
1. Offer-in-Compromise: Doubt as to Liability
2. Offer-in-Compromise: Doubt as to Collectability
3. Offer-in Compromise: Effective Tax Administration
4. The Partial Pay Installment Agreement (this was an “OIC” in the past)
5. Innocent or Injured Spouse Relief
6. Amended Tax Returns to Reduce Liability
7. Audit Response/Taxpayer Advocate Response
8. Civil Trust Fund Penalty Negotiation
9. Collection Appeals Program
10. Collection Due Process Appea
l11. Audit Reconsideration

Affordable Payment Plans
12. 60 Month Payment Terms
13. Ability to pay Payment Terms
14. Use of Net Realizable Equity to pay-down liability- lien subordination, etc.

Deferral programs
15. Currently Not Collectible Status (CNC-Status 53)
16. Negotiated 30 to 120 day extension to Full Pay
17. Negotiated 12 month payment plan for the lifestyle adjustment, conditional IAs.

Penalty Abatement programs
18. Penalty Abatement request for reasonable cause
19. Penalty Abatement request for IRS error

Tax Expiration Programs
20. Statute of Limitations
21. Defunct Business