The Internal Revenue Service (IRS) will place a taxpayer’s account in a Currently Not Collectible (CNC) status when they have determined that the IRS is presently unable to collect the taxes from the taxpayer by full payment, through an Installment Agreement or by way of an Offer In Compromise. Once the account is placed in a Currently Not Collectible status, the IRS does not pursue collection activity against the taxpayer and the statute of limitations on the tax liabilities will continue to run.
Generally, unless the taxpayer’s financial situation changes, the account will remain in a Currently Not Collectible status until the tax liabilities expire. However, if the taxpayer’s financial situation improves the account will be taken off of Currently Not Collectible status so that the IRS can collect the taxes through full payment or an Installment Agreement.
Depending on the circumstances and the amount of time that the IRS has left to collect the tax debt, the Installment Agreement may pay all or part of the back tax liability. Unfortunately for many taxpayers, they end up with monthly payments greater than they can reasonably afford causing them a financial hardship. In many situations like this, the taxpayers end up defaulting on their Installment Agreement causing the IRS to begin collection activity all over again. Therefore, it is important to have an affordable Installment Agreement established properly the first time.
An IRS Offer in Compromise with the IRS allows taxpayers that cannot afford to full pay their back tax liability the opportunity to settle their tax debt for less money than what they owe. If you qualify, an Offer in Compromise can reduce IRS debt and save you thousands of dollars!
The IRS sets guidelines for accepting an Offer in Compromise. The IRS looks at a taxpayer’s past, current and future financial situation when evaluating whether an Offer in Compromise should be accepted. It is important to know what aspects of a taxpayer’s situation the IRS is looking at when filing an Offer in Compromise. Not everyone qualifies for an IRS Offer in Compromise, as each person’s financial situation is different. Additionally, the length of time varies but the average time it takes is generally is 9 to 12 months.
There is nothing more time-consuming than a “crash course” in tax law when the IRS decides to audit your return. Just the time it takes to gather the documentation supporting every line item on your tax return is substantial, never mind the additional time it will take you to learn about tax laws. And when that audit letter arrives in the mailbox, you WILL spend the additional time because you know that by not complying with the auditor’s every request, you will likely end up with a hefty tax bill complete with interest and fees for tax deficiency. Meanwhile, your business and your personal life will suffer.
An IRS Tax Auditor is trained to pick apart a tax return and scrutinize every line. It’s an auditor’s job to extract every scrap of information that you are legally obliged to provide. Tax Auditors are the experts of the world of tax returns and you are an expert of… well, something else. Would you hire a novice to come in and run your business, to compete against your expert competitors? So why meet the IRS on your own?
Our clients rarely have to do more than forward us an IRS Notification of Audit Letter-should one arrive. As part of our expert tax preparation services, we take on the IRS for you. We handle the paperwork, the questions, the scrutiny, and the intimidation factor while you go on about your business as usual.
If you have received an IRS Audit Letter, go ahead and fill out the form at the bottom of this page. One of our tax specialists will be in touch with a FREE Strategy Session.
John is not only one of the most honest, kind, family orientated and the smartest realistic person I have ever met. He's genuine. He cares and goes above and beyond for his clients. Not only has he kept me incredibly organized with my taxes by sending these beautifully bound 'book-like" copies of my important tax info for every year. -saved me so much anxiety every time I had to provide this info for something. (Loan/mortgage officers love it BTW, I think I've gotten some extra brownie points because it makes me seem so on top of my business!) I could spread my gratitude for him in a novel. He is so amazing; he actually takes the time to send out these incredibly helpful and inspirational newspapers that inform you of various helpful articles in which we are blessed to receive from a Gentleman who writes books on Tax Law. Oh yes, and thank you for supporting and helping us Artists!!! We love you and your family"
I met John Walters through a business associate of ours in 2012. From day 1 I was impressed with not only his knowledge and expertise in tax accounting but also his high level of passion that he has for his profession. There is a sense of genuine care and integrity that is resonated when communicating with him. In addition, the huge $ amounts that he has saved me (as well as my mother whom I referred to him) is an added plus!"
When my tax situation was a complete mess for multiple years, John Walters had the knowledge and perseverance to see it through, unravelling the disaster, causing me to have a great outcome and relief of a huge burden. I highly recommend him for any tax consulting or preparation. He is expedient, reliable, friendly and reasonable."