Tax Problems Blog

January 23, 2018

Trump picks tax lawyer as next IRS commissioner, sources say

Filed under: IRS levy and wage garnishment, irs commissioner — Administrator @ 9:59 pm

President Donald Trump will nominate tax lawyer Charles “Chuck” Rettig to head the IRS, multiple sources with knowledge of the White House selection process told POLITICO on Tuesday night. … Read more HERE

Rettig, who’s considered a tax controversy specialist, has for more than three decades represented clients before the IRS, Justice Department, state tax authorities and other jurisdictions. He’s with the firm Hochman, Salkin, Rettig, Toscher & Perez PC, in California. Read Here

January 22, 2018

Government Shutdown – January 2018

Filed under: IRS levy and wage garnishment — Tags: — Administrator @ 8:16 am

As of January 22, 2018, there is a “government shutdown”; however, limited staffing by the IRS/ACS is still available on the phone. During a prior shutdown, such was not the case.

January 16, 2018

IRS Urges Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements; People Owing $51,000 or More Covered

Filed under: IRS levy and wage garnishment — Tags: , — Administrator @ 1:21 pm

WASHINGTON ─ The Internal Revenue Service today strongly encouraged taxpayers who are seriously behind on their taxes to pay what they owe or enter into a payment agreement with the IRS to avoid putting their passports in jeopardy.

This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015. The FAST Act requires the IRS to notify the State Department of taxpayers the IRS has certified as owing a seriously delinquent tax debt. See Notice 2018-1. The FAST Act also requires the State Department to deny their passport application or deny renewal of their passport. In some cases, the State Department may revoke their passport.

Taxpayers affected by this law are those with a seriously delinquent tax debt. A taxpayer with a seriously delinquent tax debt is generally someone who owes the IRS more than $51,000 in back taxes, penalties and interest for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired or the IRS has issued a levy.

There are several ways taxpayers can avoid having the IRS notify the State Department of their seriously delinquent tax debt. They include the following:

• Paying the tax debt in full
• Paying the tax debt timely under an approved installment agreement,
• Paying the tax debt timely under an accepted offer in compromise,
• Paying the tax debt timely under the terms of a settlement agreement with the Department of Justice,
• Having requested or have a pending collection due process appeal with a levy, or
• Having collection suspended because a taxpayer has made an innocent spouse election or requested innocent spouse relief.

A passport won’t be at risk under this program for any taxpayer:

• Who is in bankruptcy
• Who is identified by the IRS as a victim of tax-related identity theft
• Whose account the IRS has determined is currently not collectible due to hardship
• Who is located within a federally declared disaster area
• Who has a request pending with the IRS for an installment agreement
• Who has a pending offer in compromise with the IRS
• Who has an IRS accepted adjustment that will satisfy the debt in full…

If you need assistance with your tax problems, please call 1-866-482-9707. The consultation is free.
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September 6, 2017

Federal Payment Levy Program: The New IRS Automated Levies on Military Retirement Payments May Be Harming Veterans Experiencing Economic Hardship.

Federal Payment Levy Program: The New IRS Automated Levies on Military Retirement Payments May Be Harming Veterans Experiencing Economic Hardship.

The Taxpayer Advocate has reported on the above in a two part series.

The Taxpayer Advocate expressed concerned about a recent IRS change in its policy regarding adding military retirement payments as a payment stream to the Federal Payment Levy Program. Under this program, an automated system identifies taxpayers with unpaid tax liabilities who receive certain payments from the federal government. A continuous levy for up to 15% of federal payments due these taxpayers can be made for the unpaid federal liabilities.

This IRS policy change has not been widely publicized.

The Taxpayer Advocate states, in part:

“I am deeply concerned that the IRS has decided to target retired service members, not long after recent military engagements in Iraq and Afghanistan have decreased in intensity. Serving in the United States Armed Forces requires years of tremendous sacrifice, challenging and dangerous assignments, frequent moves across the country, long separations from family, and fairly meager pay. Whether viewed as the sole means of income or a reward from the U.S government for serving 20 years in the Armed Forces, a service member’s retirement pay should not be considered another automatic FPLP funding stream.”

The Taxpayer Advocate advises that the IRS’s data provided as justification for its actions are inaccurate and misleading.

The Taxpayer Advocate concludes in stating:

“…I therefore find it baffling that he IRS refuses to apply the LIF [Low Income Filter] to military retirees who may be experiencing economic hardship.

… I am disappointed the IRS has refused to adopt the recommendation to run all military retirees through the LIF [Low Income Filter] and believe its failure to do so will cause the agency to issue a significant number of levies it will be required by law to release because of the taxpayer’s economic hardship.

… military retirees are an easy target for the IRS because retirement benefits are an easily identifiable levy source. By cherry-picking retired service members’ pensions for automated levies without taking into consideration individual taxpayers’ facts and circumstances, the IRS violates these taxpayers’ right to fair and just tax system, right to be informed, and right to quality service. (See Taxpayer Bill of Rights (TBOR)).”

You can read the Taxpayer Advocate two part series HERE.

September 2, 2017

Sample IRS letter to taxpayer when collection case assigned to private debt collector

Filed under: IRS Levy and Tax News, IRS levy and wage garnishment — Administrator @ 3:15 pm

Sample letter to taxpayer when collection case assigned to a private debt collector at IRS
linK: IRS

August 30, 2017

IRS has changed its WEB design

Filed under: IRS levy and wage garnishment — Administrator @ 9:24 am

IRS released their NEW landing page for

February 5, 2007

Collection Due Process Hearing

Filed under: IRS levy and wage garnishment — Administrator @ 8:25 pm

U.S. 11th Circuit Court of Appeals

Redeker-Barry v. US (01/30/07 – No. 06-13925)
Denial of a Collections Due Process Hearing in connection with a determination of income tax liability is affirmed as the U.S. Tax Court has exclusive jurisdiction over claims relating to income tax liability, and the district court properly determined that it lacked subject-matter jurisdiction over the petition.
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