Yearly Archives: 2020

IRS has updated its "IRS Operations During COVID-19: Mission critical" website with updates on how it is functioning during Covid 19 including information about changes to procedures in its Appeals Office and information about its resumed issuance of balance due notices.

The IRS has had to curtail some operations due to COVID-19, but its mission-critical functions, including accepting tax returns and sending refunds, continue. It has set up a website (the "IRS Operations During COVID-19: Mission critical") detailing what functions are and are not currently operating.

Appeals Office changes.  

The IRS removed language from the website that said that in-person Appeals conferences had been suspended “until at least August 31, 2020.” 

The updated website still states that IRS is offering telephone and videoconference Appeals conferences. But it changes IRS’s position on Appeals conferences for cases that haven’t been docketed in the Tax Court. 

Appeals Will No Longer Suspend Cases Due To A Taxpayer's Request For An In-Person Conference. 

“In the interests of providing a timely Appeals conference, Appeals will now begin contacting taxpayers and scheduling a conference, either over the telephone or through WebEx.”  

The website reflects IRS's previously posted information that it resumed sending the 500 series balance due notices to taxpayers in October.

Have an IRS Tax Problem?

 Contact the Tax Lawyers at
Marini & Associates, P.A. 

Read more at: Tax Times blog

The IRS Small Business and Self-Employed business unit released its Fiscal 2021 Focus Guide -- It’s Still the Time -- laying out the compliance and service strategies for the coming year.

OUR CORE MISSION

Help small business and self-employed taxpayers understand and meet their tax obligations, while applying the tax law with integrity and fairness to all.

Our mission promotes voluntary compliance by focusing on renewed presence, ensuring public transparency, taking enforcement action every time it’s appropriate, and informing and empowering taxpayers.

STRENGTHEN COMPLIANCE ACTIVITIES

Take enforcement action every time it is appropriate (consider COVID-19 impact). 

• Take action to mitigate risks of non-compliance and evolving threats. 
• Expand use of all civil penalties including those used infrequently. 
• Use the badges of fraud to identify and develop civil and criminal fraud cases.

LEVERAGE TECHNOLOGY AND DATA ANALYTICS

Use research and data analytics to propose solutions for non-compliance, emerging issues, and better serve and understand the public.

Expand SB/SE digital and virtual service options to improve the taxpayer experience and foster voluntary compliance.

DEVELOP OUR WORKFORCE

Hire a diverse workforce with the skills and abilities necessary to meet our business goals. Supply all employees with the training necessary for a highly skilled workforce reducing the chances of business disruption. Safeguard the health and safety of employees while still delivering mission-critical functions.

Have an IRS Tax Problem?

 Contact the Tax Lawyers at
Marini & Associates, P.A. 

Read more at: Tax Times blog

On April 10, 2019, we posted US Taxpayers Are Receiving Automated Penalty Assessments For Late Filed Form 5471's & 5472's - We Can Help!  where we discussed that we have been receiving a many calls from businesses who have received penalty notices regarding late filed or non-filed Form 5471 & 5472's and that we discussed ways to defend against these automatic assessments and request penalty abatement including the Reasonable Cause Defense and First-Time Offender Abatement (FTA) Defense.

On November 3, 2020 we posted, New $25,000 Penalty for Not Reporting SMLLC with Foreign Owner Now Being Assessed by the IRS, we where we discussed that the IRS has now issued final regulations and they treat a domestic disregarded entity wholly owned by a foreign person as a domestic corporation separate from its owner, but only for the reporting, record maintenance and associated compliance requirements that apply to 25% foreign-owned domestic corporations under Code Sec. 6038A. and that for Tax Years beginning after December 31, 2017, the TCJA Act increased the late filed Form 5472 penalty to $25,000 From $10,000 for Each Return that must be filed.

We have had great success in requesting penalty abatements for these automatic late filed Form 5472 $25,000 penalty assessments!

We Can Help You Eliminate Your
$25,000 Late Filed Form 5472 Penalties
for $5,000 Per Penalty!

Contact the Tax Lawyers at 

Marini & Associates, P.A.

 

for a FREE Tax Consultation

at www.TaxAid.us or www.TaxLaw.ms

or Toll Free at 888-8TaxAid (888 882-9243)

 

 

Read more at: Tax Times blog

The Internal Revenue Service on November 2, 2020 announced in IR-2020-248 a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS.

Taxpayers who owe always had options to seek help through payment plans and other tools from the IRS, but the new IRS Taxpayer Relief Initiative is expanding on those existing tools even more.

The revised COVID-related collection procedures will be helpful to taxpayers, especially those who have a record of filing their returns and paying their taxes on time. Among the highlights of the Taxpayer Relief Initiative:

• Taxpayers who qualify for a short-term payment plan option may now have up to 180 days to resolve their tax liabilities instead of 120 days.
• The IRS is offering flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted Offer in Compromise.
• The IRS will automatically add certain new tax balances to existing Installment Agreements, for individual and out of business taxpayers. This taxpayer-friendly approach will occur instead of defaulting the agreement, which can complicate matters for those trying to pay their taxes.
• To reduce burden, certain qualified individual taxpayers who owe less than $250,000 may set up Installment Agreements without providing a financial statement or substantiation if their monthly payment proposal is sufficient. 
• Some individual taxpayers who only owe for the 2019 tax year and who owe less than $250,000 may qualify to set up an Installment Agreement without a notice of federal tax lien filed by the IRS.
• Additionally, qualified taxpayers with existing Direct Debit Installment Agreements may now be able to use the Online Payment Agreement system to propose lower monthly payment amounts and change their payment due dates.

Installment Agreement options are available for taxpayers who cannot full pay their balance but can pay their balance over time. 

The IRS Expanded Installment Agreement Options To Remove The Requirement For Financial Statements And Substantiation

 In More Circumstances For Balances Owed Up To $250,000 If The Monthly Payment Proposal Is Sufficient.

The IRS also modified Installment Agreement procedures to further limit requirements for Federal Tax Lien determinations for some taxpayers who only owe for tax year 2019.

In addition to payment plans and Installment Agreements, the IRS offers additional tools to assist taxpayers who owe taxes:

• Temporarily Delaying Collection — Taxpayers can contact the IRS to request a temporary delay of the collection process. If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer's financial condition improves.
• Offer in Compromise — Certain taxpayers qualify to settle their tax bill for less than the amount they owe by submitting an Offer in Compromise. 
• Relief from Penalties — The IRS is highlighting reasonable cause assistance available for taxpayers with failure to file, pay and deposit penalties. First-time penalty abatement relief is also available for the first time a taxpayer is subject to one or more of these tax penalties.

"If you're having a tax issue, don't go silent. Please don't ignore the notice arriving in your mailbox," Guillot said. "These problems don't get better with time. We understand tax issues and know that dealing with the IRS can be intimidating," so hiring experience Tax Attorneys prevent you from having deal with the IRS while addressing and resolving your tax problems!

Have IRS Tax Problems?

 Contact the Tax Lawyers at
Marini & Associates, P.A. 

Read more at: Tax Times blog