The IRS Collection Division attempts to collect delinquent taxes as inexpensively and rapidly as possible. To accomplish this task the IRS makes extensive use of computers. Only when automated methods have failed to collect a tax is the matter assigned to an individual for collection.
Over the past several years as taxpayers have endured the Great Recession the IRS has escalated the number of federal tax liens filed against delinquent taxpayers. The IRS aggressive use of liens has been criticized by the National Taxpayer Advocate in her annual report to congress and the IRS Advisory Council in its annual report to the Commissioner. IRS recently announced a new, more flexible attitude in policies and programs to help taxpayers pay back taxes and avoid tax liens.
As part of its new oversight program of the nation’s tax return preparation industry, the Internal Revenue Service recently announced it will send letters to approximately 100,000 tax return preparers who prepared returns in 2011 but failed to follow new requirements.
An overemphasis on cycle time creates incentives for IRS employees to take actions quickly, even where doing so produces inaccurate results or delays the final resolution of problems.
The IRS recently announced a new voluntary disclosure for companies with misclassified workers.
Arnstein & Lehr Chicago Partner Robert E. McKenzie was interviewed by First Business News for its April 11 broadcast. During the interview Mr. McKenzie discussed the IRS tax probe of HSBC Bank off-shore accounts in India. According to Mr. McKenzie,…
When a taxpayer requests an installment agreement for larger tax liabilities or proposes an offer in compromise, the IRS applies allowable expense standards. Total allowable expenses include those expenses that meet the necessary expense test. The necessary expense test is defined as expenses that are necessary to provide for a taxpayer’s and his or her family’s health and welfare and/or production of income. The expenses must be reasonable. The total necessary expenses establish the minimum a taxpayer and family needs to live and serve as the basis for granting installment agreements and offers in compromise.
Video of Robert E. McKenzie Bloomberg interview regarding offshore accounts Click here Custom Search
Robert McKenzie was recognized in an article in the April/May 2009 edition of CPA Magazine entitled the “Top 40 Tax Advisors to Know During a Recession.” State society and national association of CPAs and accountants nominated the candidates. Each candidate was then asked to submit words of advice about tax planning during a recession.
Robert McKenzie was recognized in an article in the April/May 2009 edition of CPA Magazine entitled the “Top 40 Tax Advisors to Know During a Recession.” State society and national association of CPAs and accountants nominated the candidates. Each candidate was then asked to submit words of advice about tax planning during a recession. Their advice was included within the article.