(and some thoughts on Private Collection of Tax Debts) The news media has been reporting this story for over a year now. Foreigners scamming people into paying the stupid tax. But watch what happens when the tables are turned. And stick around after the break to hear about how congress is floating a proposal that…
It wasn’t long ago that Tax professionals in various blogs and internet communities (as well as, presumably in the “real world”) started warning others that the IRS was skipping preliminary notices of deficiency and going straight to final notices of deficiency.
This tactic, likely done for the sake of efficiency and expediency from the IRS’s perspective (or at least that is probably what the IRS would say) will certainly lead to more taxpayers being hit with assessments from the result of a CP2000 or other audit before they know what hit them, and perhaps missing the chance to appeal.
Now the collections arm of the IRS – the “Automated Collection System” (better described as the “tax machine,” if you ask me) is making a similar play, by sending out a notice that looks just like the first Notice of Intent to Levy (which DOES NOT indicate an immediate risk of loss to the taxpayer and after which they cannot file for a hearing), but isn’t. It operates EXACTLY a Final Notice of Intent to Levy (cp1058) but isn’t.
THANKS IRS, really. Well played.
Taxpayers should keep in mind that if they get a letter with notice number LT11 or CP1058, they have a limited time to act before their bank accounts, wages, and other property are exposed to levy and forcible collection by the IRS.
“How can this happen?” Ms. Hinders said in a recent interview. “Who takes your money before they prove that you’ve done anything wrong with it?” The federal government does. Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required Many people know that you can’t deposit more than $10,000.00 in your bank account without the…
BY: THOMAS S. GROTH, ESQ (@tsgESQ) With her piece at the Washington Post this week, Michelle Singletary tries to tell us that “Tax-relief ‘rescues’ are really a ruse.” She doesn’t even feel the need to qualify the statement. Is she on the IRS payroll? I understand the urge to go after the entire industry, even…
BY: THOMAS S. GROTH, ESQ (@tsgESQ) Have you gotten one of these recently? Over the past several years, with the help of automated systems, the IRS has been filing an increasing number of tax liens. But, according to the National Taxpayer Advocate, though IRS tax lien filings have increased – IRS collections remain flat:…
If you haven’t been living under a rock for the last decade, you’ve seen the ads. It is such a cliche in the “tax resolution” industry. “Tax Resolution” firm websites will commonly invoke the term “pennies on the dollar” to warn you of the firms you should steer clear of. Sure, pretty much all of…
#IRS Smartphone app lets you check on a refund, request a #tax return or transcript, watch IRS videos & more http://t.co/HjPJMYaXOw — IRS (@IRSnews) September 29, 2013
How much of the workflow of revenue officers at the IRS is dictated by computers? It isn’t that surprising that most of the mail the IRS sends out is generated by computers. What’s surprising is that computers basically run the show on all levels of the IRS. In this blog entry, I discuss the grip…