Forbes Blog: IRS Relaxes Offer In Compromise Rules

IRS Relaxes Offer In Compromise Rules

Offers in Compromise

In 2011 the IRS issued a new offer in compromise form. Taxpayers proposing compromises based upon doubt as to collectibility of effective tax administration must submit revised Form 656. Taxpayers proposing an offer based upon doubt as to liability must now submit Form 656-L and a narrative setting forth defenses to the liability. To comply with the new downpayment requirements taxpayers must submit Form 656-PPV with the required [...]

2014 IRS Representation Update



By: Robert E. McKenzie



IRS Workforce

1.10    Because of Congressional cuts in IRS budgets its workforce continued to shrink until 2008. In 2009 and 2010 the IRS had its budgets grow and its workforce grew. In 2011 the IRS budget was frozen and its workforce shrank. In [...]

7 Million Taxpayers Fail To File Their Income Taxes

7 Million Taxpayers Fail To File Their Income Taxes

Offer In Compromises Made Easier

Offer In Compromises Made Easier


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Nominee Liens And Alter Ego Liens

Nominee Liens & Alter Ego Liens

By Robert E. McKenzie ©2012



Depriving Taxpayers of Administrative
Due Process of Law

practitioners have observed the aggressive approach that the IRS has recently
taken to collect taxes from alleged nominees and alter egos of delinquent
taxpayers. This summary collection approach deprives the alleged nominees of
administrative due process of law. In most [...]

IRS Collection Standards for Living Expenses

Below are links to the latest revisions of the national standards used in collection financial analysis. The charts show the itemized monthly national standards and the total money national standards as revised in March 2010. The new standards are effective for financial analysis conducted after publication.

Allowable Expenses for Food, Clothing and Other Personal Expenses

Out of [...]

Reducing IRS Penalties

Procedural Requirements for Imposition of Penalties and Additions to Tax
The Internal Revenue Service Restructuring Act required that each notice imposing a penalty include the name of the penalty, the Code section imposing the penalty, and a computation of the penalty. The Act also requires the specific approval of IRS management to assess all non computer generated penalties unless excepted. This provision does not apply to failure to file penalties, failure to pay penalties, or to penalties for failure to pay estimated tax. [...]

5-27-12 Forbes Blog: New IRS Offer In Compromise Policies

Over the years the IRS offer in compromise program has been the subject of a great deal of criticism by Congress, the National Taxpayer Advocate and taxpayer representatives. The new initiative represents the most dramatic liberalization of IRS settlement policies ever announced. It represents a welcome change from an agency which has always placed substantial roadblocks to those seeking to compromise their tax [...]

Robert E. McKenzie Quoted in Accounting Today on the Bankruptcy of Widely Adverised Tax Resolution Firms

“There are still lots of tax resolution services out there, but the three that filed for bankruptcy—TaxMasters, Roni Deutch and JK Harris—were the ones that engaged in heavy duty advertising on a national scale,” said Bob McKenzie, a tax partner at Arnstein & Lehr. [...]