Charles T. Dillon Maryland Tax Attorney (410) 321-7696
Helpful IRS Forms & Publications
- IRS Audit and Examination Help - An IRS audit is a review/examination of the accounts and financial information of an individual or business to verify information was properly reported according to all applicable federal tax laws and to confirm the reported income tax is accurate. Read more about the IRS tax audit process here.
- IRS Collection Process - If you are are unable to pay what is owed the IRS, you may be eligible for a number of payment solutions, including: an extension of time to pay, an installment agreement (monthly payments), delaying collection, or an offer in compromise.
- Trust Fund Recovery Penalties (TFRP) - Businesses must properly remit all of their federal payroll taxes to the IRS, otherwise Internal Revenue Code Sec. 6672(a) imposes a harsh penalty on any person who is responsible for paying payroll taxes and willfully fails to do so. This is known as the trust fund recovery penalty (TFRP). Also, ANY EMPLOYEE may be subjected to this harsh penalty regime, not only the owners, directors, or officers of a business. The trust fund recovery penalty usually equals the amount of money the employer withheld from employees’ wages (e.g., Social Security, Medicare, and income taxes) that was not paid to the IRS. Read more about IRS Trust Fund Recovery Penalties here.
- IRS Offer in Compromise (OIC) - It is sometimes possible to settle your IRS tax bill for less than the amount owed by submitting an Offer in Compromise (OIC). However, despite what you may have see on TV and heard in radio commercials, the criteria for accepting an offer in compromise are very strict and few offers are actually accepted each year. Read more about IRS Offers in Compromise here.
- IRS Tax Lien - The IRS may file a Notice of Federal Tax Lien against your property to establish priority as a creditor. When an IRS tax lien is filed, it may harm your credit rating and many times adversely affect your ability to work. Therefore, preventing an IRS tax lien from being filed is a necessary priority. After a lien is filed, the IRS generally will not issue a Certificate of Release of Federal Tax Lien until the taxes, penalties, interest and recording fees are paid in full. There are exceptions to this, however, the IRS doesn't like releasing IRS tax liens until they are paid in full. Read more about IRS tax liens here.
- IRS Tax Levy - The Internal Revenue Code (IRC) Sec. 6331 authorizes tax levies to collect delinquent taxes. An IRS tax levy allows for the legal seizure of your property as payment towards your IRS taxes. IRS levy powers are very powerful. It can garnish your wages, take money from your bank or other financial accounts, seize and sell your vehicle(s), real estate and other personal property. Read more about IRS tax levies here.
- Unfiled IRS Tax Returns - If you've not filed your IRS tax returns, the IRS will usually require you to file the last six years’ of unfiled tax returns in order to be considered current and compliant. This six year filing requirement for unfiled IRS tax returns is found in both IRS Policy Statement 5-133 and Internal Revenue Manual 4.12.1.3. Sometimes, the IRS files tax returns for taxpayers who've not filed. This is called an IRS Substitute for Return (SFR) and is authorized by Sec. 6020(b) of the Internal Revenue Code. Most times, an IRS Substitute for Return is inaccurate because it charges you for all income, but excludes your allowable deductions and exemptions. Usually incorrectly estimated IRS tax returns can be corrected by filing an original IRS tax return. Read more about unfiled IRS tax returns here.
- Innocent Spouse Relief - Married taxpayers who file their IRS tax return jointly, are both legally responsible for paying all of the tax, interest, or penalties from their joint IRS tax return even if they later divorce. In some cases, however, a you may get tax relief from a joint IRS tax return if properly requested as innocent spouse relief, separation of liability relief, or equitable relief.
- IRS Appeals - If you don't agree with the results of an IRS audit and other IRS determinations, you may be able appeal your case administratively within the IRS, to the U.S. Tax Court, the U.S. Claims Court or the local U.S. District Court.
- Other IRS Tax Problems
IRS tax problems can be stressful and frustrating - but they don't have to be. Properly resolving IRS tax problems many times requires the tax resolution services of a skilled tax attorney who is familiar with the intricacies of dealing with the IRS and numerous areas of tax law. A few examples of some of the more common IRS tax problems clients hire Maryland tax attorney Charles Dillon for his help are:
Talk first to a tax attorney before confiding in your accountant anything about your IRS tax problems!