The IRS Taxpayer Advocate’s office released the Taxpayer Roadmap (TAS_Roadmap) that provides a very visual illustration of the many stages of interactions with the IRS. This roadmap details the process of filing and processing a tax return. The IRS audit process and the Taxpayer’s ability to contest and review IRS audit examinations and changes.
IRS Collections, Liens & Levies
With the passing of the April 15th tax filing deadline, many taxpayers are faced with new tax liabilities and looking for answers on how to address them. Fortunately, there are many different repayment options available for tax liabilities. The qualification requirements for many of these options are largely dependent on the type of taxpayer and the amount of tax owed.
Penalty Assessments Are Increasing
The IRS has rapidly increased audits of tax returns that report micro captive transactions. Specifically, since November 1, 2016, the IRS has deemed the micro captive insurance transactions to be listed transactions. In 2018, the IRS included the micro captive insurance transactions as one of its dirty dozen tax scams.
The IRS updated its Offer in Compromise booklet and released new forms for the Offer in Compromise program. The revised forms can be found at https://www.irs.gov/pub/irs-pdf-f656b.pdf.
In March 2019, the IRS updated the IRS Forms 433-A and B (OIC), the Collection Information Statements for Individuals and Businesses.
One of the most common questions I am asked when I tell people that I am tax attorney is whether the filing of an extension to extend the due date of their income tax return increases the risk that their tax return will be audited. The IRS allows taxpayers to file an extension request by filing an IRS Form 4868 by the April 15th deadline.
The IRS is increasing its focus on prosecuting business owners for delinquent federal employment tax liabilities. Specifically, in March 2017, the Treasury Inspector General for Tax Administration (TIGTA) published a report detailing how employment tax crimes have become a major problem for the IRS. In this report, the TIGTA noted that as of December 2015,