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Category Archives: criminal tax law

IRS Revises Form 656-Booklet on “Offer in Compromise”

The 2020 revision of the Form 656-Booklet, Offer in Compromise (OIC) is now available for download on IRS.gov.

The booklet contains current forms and instructions for submitting an OIC, including the $205 OIC application fee.


Using previous versions of the booklet may result in delayed processing of OIC applications.

Use the OIC Pre-Qualifier Tool to confirm your client is eligible and to calculate a preliminary offer amount. 

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Read more at: Tax Times blog

IRS Allows Unrepresented Taxpayers To Settle Their Tax Cases Virtually And Reach Finality

The Internal Revenue Service Office of Chief Counsel announced in IR-2020-87 the Settlement Days program will continue remotely enabling unrepresented taxpayers to work towards resolving their pending United States Tax Court case despite "stay-at-home" orders in many jurisdictions.  The first two events are for docketed cases with place of trial in Detroit or Atlanta.  Future events may be scheduled in other cities throughout the United States.

Virtual Settlement Days is a coordinated effort to resolve Tax Court cases by giving taxpayers not represented by counsel the opportunity to receive free tax advice and possible representation from Low Income Taxpayer Clinics (LITCs) or other pro bono organizations. Taxpayers can discuss their Tax Court case and federal tax issues with members of the IRS Office of Chief Counsel, Appeals and Collections.

The program is geared to help unrepresented taxpayers receive free assistance in discussing a potential fair settlement of their tax disputes in an informal setting without the need for further litigation or a trial in Tax Court. The vast majority of taxpayers participating in previous Settlement Days programs have resolved their cases; most of those who ended up with a liability have been able to enter into an installment payment arrangement.

The Tax Court canceled scheduled trial sessions in a series of Orders issued on March 11, 13 and 23, 2020.  The Tax Court Orders state that it is expected that parties will continue to work together to exchange information and address pending issues. The Settlement Days events accomplish the Tax Court’s goals by allowing the parties to work towards settling case on a remote basis. 

Chief Counsel has scheduled Virtual Settlement Days events for May 2020 for cases docketed on the Detroit and Atlanta Tax Court trial sessions. Chief Counsel has invited more than 100 unrepresented taxpayers to meet with Chief Counsel attorneys or paralegals via WebEx for the two events. The taxpayers will be able to speak with LITC representatives prior to the WebEx meetings. If the taxpayer desires, the LITC representatives will later join the WebEx meetings.

The Detroit Office of Chief Counsel will host its event on Saturday, May 9, in conjunction with the University of Michigan Law School LITC for the Detroit trial session cases. The IRS has invited over 100 Tax Court petitioners.  The cases being selected are from recently canceled Tax Court calendars, as well as other docketed cases not yet set for trial. The event may be extended, if needed, to meet taxpayer’s needs. 

The Atlanta Office of Chief Counsel will host the second event on Thursday, May 21, in conjunction with the North Georgia Low Income Taxpayer Clinic for the cancelled Atlanta trial session cases and other docketed cases. The event may extend over several days to accommodate the schedules of the participants. The IRS will focus on inviting unrepresented taxpayers whose cases sessions have been delayed due to Tax Court cancellations.

While docket taxpayers with cases currently under consideration by the IRS Independent Office of Appeals have not been sent invitations to the Detroit and Atlanta events, the IRS encourages those petitioners to contact the Appeals Officer assigned to their case to discuss resolution. Appeals continues to work cases, including use of virtual conferences. For unrepresented taxpayers who are working with an Appeals Officer and receive an invitation to the event, the IRS will work with them at the event to resolve all their issues.

In addition, IRS Chief Counsel recently prepared a Virtual Settlement Days Best Practice Guide for external use that will be released in advance of the Virtual Settlement Days events. Chief Counsel anticipates that Virtual Settlement Days will be a mainstay of its Settlement Day efforts even after this crisis is over. Chief Counsel released an initial Settlement Days Best Practices Guide in January 2020, which outlined a remote model for the program.

Do You Have a Tax Problem and
Need Experience Representation?
 
 
Contact the Tax Lawyers at 
Marini & Associates, P.A.   
for a FREE Tax Consultation contact us at:
Toll Free at 888-8TaxAid (888) 882-9243
 
 
 

Read more at: Tax Times blog

Extension of Deadline for Tax Court Filings

IRS has added a new FAQ to its set of FAQs on the extension of filing and payment deadlines; the new FAQ is on the subject of the extended deadline for filings in the United States Tax Court.

The Tax Court building has been closed, because of COVID-19, since the middle of March. In Notice 2020-23, IRS extended most due dates for items falling due between April 1, 2020 and July 14, 2020 to July 15, 2020. That extension of time included filings with the United States Tax Court.
In a 2016 Tax Court case involving a time period when the Tax Court was closed during a snowstorm, the Tax Court concluded that because it had no rule regarding days when its clerk's office was closed, it could borrow from the Federal Rules of Civil Procedure and treat filings received on the next day after closure as timely. (Guralnik, (2016) 146 TC 230).
IRS adds FAQ on the extension of Tax Court filing deadline.  IRS has now added the following FAQ: 
 

A. Yes, a taxpayer will get the benefit of both periods.  For example, if the last day for filing a petition fell on March 19, 2020, the date that the Tax Court closed, the taxpayer will get the benefit of Guralnik from March 19, 2020 and the benefit of this notice from April 1, 2020 until July 15, 2020.  If the court were to reopen before the expiration of the notice postponement period, the taxpayer will get the benefit of the postponement until July 15, 2020.  If the court reopens after the notice postponement period (that is, after July 15, 2020), the due date for the taxpayer’s petition is extended to the Tax Court’s reopening date under Guralnik and the relief under Notice 2020-23 does not apply.
Need to File a Petition in Tax Court?
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Marini & Associates, P.A.   
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IRS Post Expanding Operations During Phased- In Reopening

On April 29, 2020 we posted Their Back! - That is Right the IRS Has Begun to Recall Employees, where we discussed that the Internal Revenue Service is recalling about 46,000 of its employees furloughed by the government shutdown, nearly 60 percent of its workforce, to handle tax returns and pay out refunds. The employees won't be paid during the shutdown. 
On the IRS website IRS Statement: Update on IRS operations, updated as of April 29, 2020, the IRS now states that:

As local health advisories around the country are lifted in the coming weeks and months and operations continue to increase, the IRS will continue to implement, follow and where possible exceed specific federal and local safety guidelines and measures.

As operations expand, IRS employees will continue their dedication to serving the American people.

We are grateful for the many IRS employees who have worked during the pandemic and to those who have already voluntarily returned to the workplace.

IRS employees can expect:

  • Fully supplied, sanitized and operational facilities
  • Social distancing and minimal in-person interactions
  • Phased-in reopenings
  • As part of initial operations, employees will begin to:
    • process mail,
    • tax returns and
    • paper correspondence;
    • online and phone assistance;
    • processing requests for transcripts and similar information;
    • processing requests for release of liens and levies; and 
    • correspondence and similar examinations.

We appreciate the patience and understanding of taxpayers and tax professionals as we continue to expand the scope of our operations.

 

Have an IRS Tax Problem?


 
Contact the Tax Lawyers at 
Marini & Associates, P.A.   
for a FREE Tax Consultation contact us at:
Toll Free at 888-8TaxAid (888) 882-924
 
 
 
 

 
 
 

 

Read more at: Tax Times blog

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