Skip to main content

Posts

Keys to a Successful Offer in Compromise | Nicholas Hartney, EA | Genesis Tax Consultants, LLC ©

Keys to Unlock a Successful Offer in Compromise ©by Nicholas Hartney, EA © of Genesis Tax Consultants, LLC©*Updated Article 2018 Here
Contact me: Nicholas Hartney Licensed to Represent Taxpayers Before the IRS 
The Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s liability for some amount which is less than the full amount due. The IRS has the authority to settle or compromise federal tax liabilities by accepting less than full payment under certain circumstances.


The taxpayer makes an Offer in Compromise on Form 656. If the IRS accepts the Offer in Compromise, then a contract is formed in which the IRS agrees to cancel the tax debt in return for the payment of the agreed sum. The IRS has a whole set of rules, policies and procedures which govern when it will accept an offer.


Unfortunately, you just don’t offer to pay them 10, 25, or 50 cents on the dollar. They look at your offer, compare it to their guidelines and then either accept it, rej…
Recent posts

High IRS Tax Debt Will Lead to Revocation of Passports for U.S. Citizens

High IRS Tax Debt to Lead to Revocation of Passports for U.S. Citizens

Jan. 16, 2018 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. Please review the Services I can help you with to avoid the revocation of your passport:
Settlement of Tax Debt with an IRS Offer in Compromise INSTALLMENT AGREEMENTCURRENTLY NOT COLLECTIBLEIRS PENALTY ABATEMENTPREVIOUS YEARS UNFILED RETURNS 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 D…

Do I Need to Hire a Tax Attorney, CPA, or Enrolled Agent?

Do You Need to Hire a Tax Attorney or Other Tax Professional?

The truth is not every legal matter requires the use of an attorney and likewise nor does all tax matters. Owing less than $10,000 because you claimed 10 dependents on your W-4 or did not make estimated tax payments on your self-employment are two examples. However, in many other situations involving large amounts of tax owed, or non-filed tax returns, you may not wish to chance the perils of going it alone without the advice of an experienced tax professional who can help you out. In fact, while good  professional representation may not be cheap, it can help get you out of a number of sticky situations - such as the abatement of penalties on a large tax bill, arguing for legitimate tax deductions on previous disallowed items, overturning the assessment of the trust fund recovery penalty, or even the settlement of taxes for less than the full amount owed - not to mention the potential alternatives for not using an attorney …

Choose a Tax Preparer Wisely

Tax Debt? Don't Feel Bad, Even Celebrities Fall Behind With Their Tax Ob...

How to Remove a Tax Lien from your Credit Reports

The three national credit reporting agencies, respectively Equifax, Experian, and TransUnion collects tax lien information from the county courts and are updated by the Internal Revenue Service as well. Usually, no action is required by the taxpayer as the status of the lien is updated to show that it is released, typically prior to 30 days after the debt has been satisfied (either through the statute expiring, payment of the liability, compromise of the liability to satisfaction, etc.)  However, if you need the update to be added immediately, or it has been over 30 days and not yet showing as released, you can send the tax lien release information yourself directly to the aforementioned national credit reporting agencies. The first step is to get a copy of your personal credit to verify whether or not the status of the lien has been updated. If it has not, you can dispute the status stating that it should indicate the lien was released. You can do all of this easily and quickly onli…

Top 10 Tips to Know if You Get a Letter from the IRS

Top 10 Tips to Know if You Get a Letter from the IRS
The IRS mails millions of notices and letters to taxpayers each year. There are a variety of reasons why we might send you a notice. Here are the top 10 tips to know in case you get one.

1.    Don’t panic. You often can take care of a notice simply by responding to it.

2.    An IRS notice typically will be about your federal tax return or tax account. It will be about a specific issue, such as changes to your account. It may ask you for more information. It could also explain that you owe tax and that you need to pay the amount that is due.

3.    Each notice has specific instructions, so read it carefully. It will tell you what you need to do.

4.    You may get a notice that states the IRS has made a change or correction to your tax return. If you do, review the information and compare it with your original return.

5.    If you agree with the notice, you usually don’t need to reply unless it gives you other instructions or you need to mak…

Tips for Filing an Amended Return

Tips for Filing an Amended Return
Have you found that you made an error on your federal tax return? If so, you may need to file an amended return. Here are ten tips that can help you file.

1.    Tax form to amend your return.  Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct your tax return. You must file a paper Form 1040X; it can’t be e-filed. You can get the form on IRS.gov/forms at any time. See the Form 1040X instructions for the address where you should mail your form.

2.    Amend to correct errors.  You should file an amended tax return to correct errors or make changes to your original tax return. For example, you should amend to change your filing status, or to correct your income, deductions or credits.

3.    Don’t amend for math errors, missing forms.  You normally don’t need to file an amended return to correct math errors. The IRS will automatically correct those for you. Also, do not file an amended return if you forgot to attach tax forms, such as a…