by Tom Regan | Oct 6, 2022 | Collections
The Internal Revenue Service (IRS) and the Minnesota Department of Revenue (MDR) have the authority to settle tax liabilities by accepting less than full payment. The IRS can compromise for a variety of reasons. 1. A Doubt as to Collectability (DATC) offer (IRM...
by Tom Regan | Sep 10, 2022 | Collections
The IRS can accept payments for unpaid taxes, penalties, and interest through an installment agreement for the full amount or, if your financial situation shows you cannot pay the full amount, it can accept monthly payments for the time left on the statute of...
by Tom Regan | Mar 28, 2020 | Collections
The IRS is making efforts to take some pressure off taxpayers during the COVID 19 pandemic. By now, most taxpayers are aware that the filing of their 2019 Form 1040, and the payment of the tax relating to that Form, are not due until July 15, 2020. This was a good...
by Tom Regan | Dec 8, 2016 | Collections
The IRS must give a taxpayer written notice, sent by certified mail, at least 30 days before it takes any collection action like a bank levy or a wage levy. IRC Section 6331(d). In 1998, Congress added the requirement that the IRS advise the taxpayer of his or her...
by Tom Regan | Aug 21, 2016 | Collections
If you want the chance to discharge your individual income taxes in bankruptcy, in Minnesota, file your returns. This is still an option if you live in the Eighth Circuit (this includes Minnesota). It is not an option in some other circuits. More courts are accepting...
by Tom Regan | Feb 9, 2014 | Collections
We often receive telephone calls and e-mails from individuals and businesses who have been contacted by the IRS for a tax obligation owing and they don’t know what to do. There are many options for dealing with these obligations. The correct option depends on...
by Tom Regan | Jan 24, 2013 | Collections
In her annual Report to Congress, Nina Olson , the Taxpayer Advocate, pointed out that the IRS is under-utilizing the Effective Tax Administration (ETA) Offer in Compromise (OIC) program. The IRS accepted an average of only 27 ETA OICs per year. The ETA program is...
by Tom Regan | Oct 29, 2012 | Collections
Yes, under the right circumstances. Income taxes (not trust-fund or withholding taxes) are dischargeable in a Chapter 7 Bankruptcy if certain conditions are met. Has it been more than three years since the original due date, including extensions, for the return? If...
by Tom Regan | Sep 25, 2012 | Collections
Yes. An in-business corporation can compromise its outstanding employment tax obligations with the IRS. In past years, the IRS required that an Offer in Compromise (OIC) from an in-business corporation include not only its ability to pay, but also, the amount the IRS...
by Tom Regan | Nov 15, 2011 | Collections
What does it mean when the IRS says it plans to take enforced collection action? Usually, it means that the IRS intends to issue a levy to a bank or employer. Those are usually the first two targets of a levy because they are easy and they get the taxpayer’s...
