Tax Seminar #3 – December 3 2012
Workbook - Zicklin School of Business
Workbook - Zicklin School of Business
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3. If case is not assigned to the local IRS Appeals Office, consider revising<br />
the request for:<br />
a. a transfer to local IRS Appeals Office case<br />
b. a face-to-face conference.<br />
IV.<br />
Preparing for the CDP Hearing Conference<br />
A. Explore all potential arguments<br />
1. Any issue not raised is waived<br />
a. Limitation: The taxpayer may not raise any issue that was<br />
previously raised and considered at any previous administrative or<br />
judicial proceeding, if the taxpayer meaningfully participated in the<br />
hearing. (i.e., tax court, penalty abatement appeal, etc.)<br />
(1) This does not include a self-assessed tax liability.<br />
2. Review Information about <strong>Tax</strong>payer’s case<br />
a. Request updated IRS transcripts<br />
(1) Practitioner Priority Service<br />
b. Review the IRS’ administrative file pursuant to the Freedom of<br />
Information Act Request.<br />
B. What to do if <strong>Tax</strong>payer Can’t Pay <strong>Tax</strong>es? What are the taxpayer’s collection<br />
alternatives?<br />
1. Currently Not Collectible - For taxpayers where collection of the liability<br />
would create a hardship by leaving them unable to meet necessary living<br />
expenses.<br />
a. The statute of limitations for collection will continue to run.<br />
b. Any significant positive changes in the taxpayer’s financial status<br />
will result in the taxpayer being taken out of currently not<br />
collectible status.<br />
c. Form 433 is required.<br />
d. Delinquent tax returns are not required to be filed. IRM 8.22.2.4.2.<br />
e. Penalties and interest continue to accrue.<br />
2. Installment Agreement<br />
a. Complete IRS Form 9465.<br />
b. Current tax returns must be filed.<br />
c. During the duration of the installment agreement Federal tax<br />
refunds will be offset.<br />
d. Penalties and interest continue to accrue.<br />
e. IRS will charge an installment agreement fee of $105 or $52 for<br />
direct debit.<br />
f. Notice of Federal <strong>Tax</strong> Lien may be filed if the amount is in excess<br />
of $50,000.<br />
g. The first time a taxpayer misses a payment, the IRS can consider it<br />
a default and resume collection activity;<br />
h. Requires the taxpayer to have access to the available funds and a<br />
continuing source of income sufficient to meet the obligation;<br />
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