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Archive for IRS

The Benefits Of Currently Not Collectible Status

Venar Ayar

Currently Not Collectible (CNC) is a temporary agreement from the IRS to stop attempting to collect your past due taxes. It can provide financial and mental relief from the constant pressure of owing the IRS money.

CNC status isn’t the right choice for every situation, but it does offer the following benefits:

No IRS Levies

IRS levies are one of the biggest concerns for people who owe back taxes. The IRS has the ability to seize many types of assets and income, including:

  • A portion of your wages from every paycheck.
  • The full amount of any bonuses or commissions you receive.
  • A portion of certain Social Security benefits payments.
  • The money in your bank account.
  • The money in your retirement account.
  • Your business assets.

As long as your account remains in CNC status, the IRS won’t issue any of these levies.   However, they may keep your tax refunds and apply them to your outstanding balance.

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Can The IRS Take Your Passport?

Venar Ayar, Tax Lawyer

The IRS can’t seize your passport, but they can let the State Department know if you have seriously delinquent tax debt. Once this happens, the State Department can deny your passport renewal or revoke your current passport.

Before this happens, you’ll have several opportunities to resolve your tax problems and keep your right to carry a valid passport.

IRS Collections And Notices

Your tax debt can’t be certified to the State Department until it is “seriously delinquent”, which requires an outstanding balance of over $52,000. Before you reach this amount of tax debt, the IRS will likely send you several bills and notices asking you to submit payment.

You may also receive a notice informing you that the IRS is filing a tax lien in the public records or issuing a levy against your bank account, wages, or other assets. At this point, you should know the IRS means business and contact a tax attorney for assistance.

If you still don’t work out a deal with the IRS and your balance exceeds $52,000, the IRS then has the ability to certify your tax debt to the U.S. State Department.

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IRS Formally Announces It Will No Longer Challenge Foreign Tax Credits On Two French Social Services Contributions

French Flag 2

The U.S. Internal Revenue Service said on Wednesday that it “will not challenge” the claiming of foreign tax credits against certain controversial payments that potentially thousands of American expatriates resident in France have been paying for years, and noted that taxpayers who wish to file a claim for refund of U.S. tax with respect to a foreign tax credit have 10 years after the “due date for filing the return” in question in which to do so.

The IRS statment, which was only two paragraphs long, came less than two weeks after the tax authority admitted in a U.S. Tax Court that it had wrongly collected millions of dollars of tax from France-resident American citizens in connection with their payment of the French “Contribution Sociale Generalisee” (CSG) and “Contribution au Remboursement de la Dette Sociate” (CRDS) taxes.

As reported, that statement was seen as capping a years-long legal saga, and was expected to potentially launch millions of dollars worth of tax refund claims by U.S. expats who have lived in, and been filing tax returns from, France.

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IRS Large Examination Audits – Best Practices Working With Remote IRS Employees

IRS- Large Examination Audits - Best Practices Working With Remote IRS Employees

Executive Summary

Expanding the use of “remote work” for IRS examinations and projects offers many benefits to both the IRS and taxpayers.  The IRS has for many years used remote work concepts for deploying its international and engineering specialists on large examinations as an adjunct to a larger onsite examination.  In 2006, the IRS expanded the use of remote/offsite examinations as an alternative to the full scope examination for a limited number of pre-identified significant issues.  Targeted use of remote work concepts helps to better deploy IRS resources, especially for special projects requiring the use of limited resources. Read more

Appealing The Findings Of Your IRS Examiner: Should You Appeal?

Venar Ayar-Appealing The Findings Of Your IRS Examiner

All you need to know about appealing your IRS findings

The Internal Revenue Service better known as the IRS is the governmental agency that ensures that you “give Caesar what belongs to Caesar”. In other words, it conducts the fundamental function of tax collection on a nationwide scale. And so given the importance of the functions performed by such an agency it is typical that such an organization would keep records, records that may in the future be used for reference when the need arises. Read more

IRS To Highlight Tax Reform Changes Affecting Small Businesses

IRS to highlight tax reform changes affecting small businesses

Small business owners, self-employed should plan now for new changes

With just a few months left in tax year 2018, the Internal Revenue Service today urges small business owners to learn about how the new tax law changes may affect them.

The Tax Cuts and Jobs Act, passed in December 2017, made tax law changes that will affect virtually every business and individual in 2018 and the years ahead. Among other things, the new law may change their tax rates and impact the quarterly estimated tax payments they are required to make during the year. Read more

The IRS Refuses To Provide Mandatory Employee Training On Taxpayer Rights

Nina Olson The IRS Refuses To Provide Mandatory Employee Training

For many years, I urged the IRS to adopt a Taxpayer Bill of Rights (TBOR) and for Congress to add the list of fundamental taxpayer rights to the Internal Revenue Code (IRC). In addition to its legal significance, a thematic, principle-based list of core taxpayer rights is an important source of foundational principles to guide IRS employees in their dealings with taxpayers, and provide information to taxpayers to assist them in their dealings with the IRS. A TBOR also serves as an organizing principle for tax administrators in establishing agency goals and performance measures. A TBOR also helps the IRS to restore trust in the tax system and ensure taxpayers know their rights and are able to avail themselves of those rights. Read more

For Many Business Taxpayers, Time Is Running Out To Elect Out Of New 100-Percent Depreciation Deduction For 2017

IRS Time Is Running Out To Elect Out Of New 100 Depreciation Deduction

The Internal Revenue Service today reminds business taxpayers who placed qualifying property in service during 2017 but choose not to claim the new 100-percent depreciation deduction, that they have a limited time to file the required election with the IRS.

In general, individuals and calendar-year corporations must file the election with the IRS by Oct. 15, 2018. The new 100-percent deduction allows businesses to write off most depreciable business assets in the year they are placed in service. Read more

The IRS’s Level Of Service Measure Fails To Adequately Show The Experience Of Taxpayers Seeking Assistance Over The Phone – Part 2

Nina Olson Measuring the Taxpayer Experience

In last week’s blog, I discussed how the Level of Service (LOS) measure used by the IRS paints a misleading picture of the taxpayer experience because it does not fully reflect taxpayers’ ability to speak with a telephone assistor and get the answer they need. The high LOS reported by the IRS masks its weaknesses in providing a high-quality customer experience, and reliance on this measure causes these weaknesses to go unaddressed. Similarly, the IRS reports an impressive overall toll-free customer satisfaction rating of 90 percent for fiscal year 2017; however, the response rate for the survey that is the basis for this measure has been low in previous years, and the measure only accounts for those callers that were able to speak with a telephone assistor. In this week’s blog, we will take a closer look to see how this rating stacks up against external evaluations and to understand the drivers of a successful taxpayer experience communicating with the IRS, regardless of the channel chosen or utilized. We will also examine how the IRS compares to other federal agencies and private sector companies, and identify practices the agency can adopt to prioritize the taxpayer experience. Read more

IRS Issues Guidance On Tax Cuts And Jobs Act Changes On Business Expense Deductions For Meals, Entertainment

IRS Issues Guidance On Tax Cuts And Jobs Act Changes

The Internal Revenue Service issued guidance today on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act (TCJA).

The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. Read more

The IRS’s Level of Service Measure Fails to Adequately Show the Experience of Taxpayers Seeking Assistance Over the Phone

Nina Olson, taxpayer, taxpayer advocate service, customer service

In a series of blogs I published earlier this year, Telephone Service in an Omnichannel Environment – The IRS Must Make Communicating with the IRS Over the Phone Easier for Taxpayers and Telephone Service in an Omnichannel Environment – The IRS Must Ensure Taxpayers Are Getting the Assistance They Need Over the Telephone, I explained why telephone communication is still an important way for taxpayers to get assistance from the IRS, even as the IRS expands its online self-help service options. In these blogs, I discussed how the IRS is failing to develop its telephone service as a vital part of an omnichannel communication environment, and thus failing to recognize the needs and preferences of taxpayers. In my 2017 Annual Report to Congress, I identified the limitations of the IRS’s telephone service as one of the Most Serious Problems encountered by taxpayers, and highlighted my concern that the IRS’s operational measures are overly focused on efficiency rather than the taxpayer experience. In this blog, I will further detail my concerns about the IRS’s reliance on the Accounts Management (AM) Customer Service Representative (CSR) Level of Service (LOS) as the benchmark measure to evaluate its phone service, as it can mask the struggles faced by taxpayers seeking assistance.   Read more

Your FATCA Registration Must Always Be Updated

IRS, FATCA, IRS News, FATCA Registration

Your FATCA registration must always be updated with the current name and email address of your responsible officer and point of contact(s) as soon as there is a change.

When you complete a FATCA registration, you are asked to include the name and contact information of (1) a Responsible Officer (“RO”) and (2) a Point of Contact (“POC”).  Specifically, among other information, you must provide their mailing and email addresses as well as their telephone numbers.  Read more