Tax Consultant. IRS Levy. IRS Lien. Offer in Compromise. Garnish

Looking back to our $10,000 tax assessment, the interest is 4% or $1.10/day and the penalty is $50/month. If it logically takes the IRS computer time to process and mail out a bill, easily fifty days has passed. Let’s not forget the failure to estimate penalty (call it $820 for this example). The first bill […]

Tax Consultant. IRS Levy. IRS Lien. IRS wage garnishment. OIC

The assessment of tax is part of what we are told is the “assessed balance”. As we know, the IRS charges penalty and interest (P&I). Currently (and reviewed quarterly) the IRS interest rate for underpayments is 4%, compounded upon itself, accrued daily. That is not so bad, I wish that I had credit cards at […]

IRS Assessment IRS Tax Lien, Levy IRS levy. Back Taxes.

This 23c date is the assessment date; the legal date that sets in motion the ten-year Collection Statute Expiration Date (CSED). This also starts the Collection Process. This notion of the assessment starting the CSED clock is important to teach you at this level as it sets the stage for later discussions. Congress did not […]

IRS Settlement. IRS back Taxes. Penalty Abatement

Objective To understand the importance and definition of the Assessment of a tax liability and the statutory periods of collection and expiration. To understand the differences between Assessment, Collection and Refund Statutory Expiration Dates. To understand the relationship of penalties and interest with the assessment periods. To understand the relationship between Liens and Levies in […]

IRS Offer In Compromise. IRS Lien. Tax Lien. IRS Levy.

Of course, there is no fun in only having clients that only have refunds, you would not be here, thirsty for knowledge. Let’s work through what happens when the best laid plans of mice and men do not equal a happy refund taxpayer. You produce a 1040 for a MFJ married couple that results in […]

The Assessment

Let’s start with the fundamental part of our careers, the assessment. The assessment (or “bill”) starts everything in Collections. The assessment has its own life, an entire set of Internal Revenue Code (IRC) and is misunderstood by many people. Your knowledge in the preparation of a tax return, all the CE, all the interactions with […]