Frustrated with the IRS? Try the Taxpayer Advocate Service

Anyone who’s interacted with the IRS lately knows how poorly things are going with the agency—taxpayers can’t seem to get a human being on the other side of the phone. Some of these frustrating delays are due to forces outside the agency’s control, like the pandemic and a shrinking budget, but that doesn’t make taxpayers’ situations any more palatable. Inattention from the IRS can be more than just frustrating for Read More

You CAN Record Your Interview with the IRS. Should You?

Even though meetings with your IRS auditor or revenue office are not criminal interrogations, it can certainly feel that way. As a result, many taxpayers consider recording any meetings they have with IRS representatives.  The Internal Revenue Code allows taxpayers to record in-person interviews if they meet certain conditions prior to the meeting. These conditions include:  Requesting, in writing, to record Read More

Struggling with Tax Debts Because of COVID-19?

We recently published a blog detailing the immense difficulty taxpayers have had in reaching an actual human being at the IRS. Years of budget cuts caught up with the federal agency as the pandemic produced a backlog of returns and requests.  The IRS provided a number of relief options in the early part of 2020, including moving the reporting deadline from April 15 to July 15. Most of those relief options expired, Read More

The 500 Series Notices From the IRS Are Back in Mailboxes

The dreaded 500 series the IRS mails out to taxpayers with outstanding balances is back after a COVID-related hiatus. Taxpayers whose IRS debts fall under the purview of the agency’s Automated Collection Service will typically receive three CP500 letters before the IRS gets aggressive.  The first letter in the series, CP501, is a completely benign letter. The CP501 lets taxpayers know they have unpaid federal Read More

Worried About the Collection Statute Expiration Date Coming Up?

Plenty of U.S. taxpayers are unaware that it is possible to run out the clock on the IRS. In most cases where a taxpayer has an unpaid debt to the IRS, the slate will be wiped clean in 10 years. The date after which the IRS will no longer be able to collect a tax debt is the Collection Statute Expiration Date (CSED) for that liability.  The clock starts ticking on the CSED when an action has been taken to assess Read More

Where is my Revenue Officer?

Anyone who has tried calling the IRS recently probably did not reach a human being. This ongoing problem worsened not long after the U.S. declared the COVID-19 pandemic a national emergency in March 2020. Even though it is business as usual in many parts of the country, IRS employees are working through a sizable backlog of paperwork and requests.  These frustrations are quite salient for taxpayers whose IRS Read More

How To Reduce Your Monthly Payments to the IRS

Do you owe the IRS, and want to pay the debt in monthly payments? If you can fully pay the amount owed in six years (and up to ten years in some situations) it may be a straightforward process. But what if you cannot afford to pay that much? If these situations the IRS may approve a Partial Payment Installment Agreement. The IRS will look at your income and your monthly living expenses to determine your ability to Read More

5 Recordkeeping Tips for Freelancers and Side Hustlers

We’re all living in the gig economy, which has its advantages and disadvantages. It’s easier than ever to start a reliable stream of income to complement your bi-monthly paycheck. Maybe you already dove headfirst into your sole proprietorship.  Regardless, the IRS wants to know certain details about your freelance income. It mainly wants to know who paid you—and how much. Unlike a W-2 job, there is no one else to Read More

IRS Using Unique Tool to Catch Alleged Crypto Cheats

All signs are pointing to a more aggressive posture by the IRS when it comes to investigating and prosecuting those who aren’t reporting their cryptocurrency transactions in accordance with federal rules. Kraken, the world’s fourth-largest crypto exchange, has been forced to turn over information on U.S. citizens involved in transactions totaling at least $20,000 from 2016-2020. The legal tool used by the IRS to Read More

CP2000: Notice of Unreported Income

Anything you get in the mail from the IRS besides a tax refund probably isn’t a letter you want to receive. One such letter is the Notice of Unreported Income, known to many as “CP2000.” The purpose of this notice is to inform you of the IRS’ assessment that you did not accurately report all of your income for the previous tax year. It is NOT a bill nor is it an ironclad assessment of tax obligations—including Read More