Tax Resolution Options for Individuals and Businesses

8/17/2019 Tax Resolution Options for Individuals and Businesses

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Tax Resolution Options forIndividuals and Businesses

Pay or Not to Pay. That is the ?


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Topics

Penalty Abatements

Installment Areements

O!er in "ompromise

Ban#ruptcy


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PenaltyAbatements

Types of Penalty Relief

$irst Time Penalty Abatement

Reasonable "ause

Administrative %aiver

&tatutory 'xception

Penalties eliible for penalty relief include( $ailin to )le a tax return

$ailin to pay on time

$ailin to deposit certain taxes as re*uired

Other penalties as applicable.

https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Penalty-Relief-Due-to-First-Time-Penalty-Abatement-or-Other-Administrative-Waiverhttps://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Penalty-Relief-Due-to-Reasonable-Causehttps://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Penalty-Relief-Due-to-First-Time-Penalty-Abatement-or-Other-Administrative-Waiverhttps://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Penalty-Relief-Due-to-Statutory-Exceptionhttps://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Penalty-Relief-Due-to-Statutory-Exceptionhttps://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Penalty-Relief-Due-to-First-Time-Penalty-Abatement-or-Other-Administrative-Waiverhttps://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Penalty-Relief-Due-to-Reasonable-Causehttps://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Penalty-Relief-Due-to-First-Time-Penalty-Abatement-or-Other-Administrative-Waiver


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$irst TimeAbatement

+ou may *ualify for administrative relief from

penalties for failin to )le a tax return, pay oand-or to deposit taxes hen due under the$irst Time Penalty Abatement policy if the foare true(

+ou didn0t previously have to )le a return orno penalties for the 1 tax years prior to the in hich you received a penalty.

+ou )led all currently re*uired returns or )leextension of time to )le.

+ou have paid, or arraned to pay, any tax d

The failure-to-pay penalty ill continue tuntil the tax is paid in full. It may be to youradvantae to ait until you fully pay the taxto re*uestin penalty relief under the &ervictime penalty abatement policy.


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Reasonable"auseAbatement

$ire, casualty, natural disaster or other distu

Inability to obtain records

3eath, serious illness, incapacitation or unaabsence of the taxpayer or a member of thetaxpayer0s immediate family

Other reason hich establishes that you useordinary business care and prudence to mee$ederal tax obliations but ere neverthelesto do so

Note: A lac# of funds, in and of itself, is notreasonable cause for failure to )le or pay on4oever, the reasons for the lac# of funds mreasonable cause criteria for the failure5to5ppenalty.


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Facts

EstablishingReasonable Cause

%hat happened and hen did it happen?

%hat facts and circumstances prevented yo)lin your return or payin your tax durin t

of time you did not )le and-or pay your taxe

4o did the facts and circumstances a!ect ability to )le and-or pay your taxes or perfoother day5to5day responsibilities?

Once the facts and circumstances chaned,actions did you ta#e to )le and-or pay your t

In the case of a "orporation, 'state or Trusta!ected person or a member of that individimmediate family have sole authority to exereturn or ma#e the deposit or payment?


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Administrative %aiver

• This may occur as result offormal overnment directiveprovidin penalty relief

because of a natural disasteor catastrophic event.


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&tatutory'xception

Incorrect Written Adice fro! IR"

If you received incorrect ritten advice from the IR&, yo*ualify for a statutory exception. If you feel you ere apenalty as the result of erroneous ritten advice you re

IR&, the folloin items may be needed hen re*uestinrelief(

+our ritten re*uest for advice.

The erroneous ritten advice you relied on that as fuyou by the IR&.

The report, if any, of tax ad6ustments identifyin the peaddition to tax, and the item7s8 relatin to the erroneou

9enerally, $orm :;1, "laim for Refund and Re*uest for should be )led to re*uest penalty relief based on incoradvice from IR&. 4oever, you can call the toll5free numprovided on the notice you received to determine if thecorrect. If the penalty is correct, e may as# you to maand any supportin documentation.

https://www.irs.gov/uac/Form-843,-Claim-for-Refund-and-Request-for-Abatementhttps://www.irs.gov/uac/Form-843,-Claim-for-Refund-and-Request-for-Abatement


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InstallmentAreements

Guaranteed (IMF

Only)

Streamlined

Streamlined (2)

IBTFExpress

IBTFExpress(2)

IBTF Ro

Amount$10,000or less

$25,000or less

$25,001 -$50,000

$10,000or less

$10,001 -$25,000

Any Amount

A

Type oTax

IMFIncome

Tax Only

IMF, BMFIncome ,

OOB

BMF

IMF, OOBSole

Pror!etor

BMFTrustFun"

BMFTrustFun"

BMFTrustFun"

IMIn

PaymentTerms

Full ay!n # years!nclu"!naccruals

%reatero& 'BA"!(!"e")y *2 or&ull ay

)y +S

%reatero& 'BA"!(!"e")y *2 or&ull ay

)y +S

Full Pay!n 2.

mont/s!nclu"!naccruals

Full Pay!n 2.

mont/s!nclu"!naccruals

Full Pay)y +S

F)y

Installment A!reement Ta"le


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Table"ontinued

#ISRe$uired

o o o o o es

%ien&etermin

ationRe$uired

o o o o o es

TFRP&etermin

ationA o o

o, )utrotect

AS

o, )utrotect

ASes

a

&&IARe$uired

o o es o es o


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Table"ontinued

Extend#olle'tion

Statuteo o o o o o o

Must ieAssets

o o o o o es e

Mana!erial Appro*al

o o o es es es e

Reeren'eI3M

51.5#I3M

51.52I3M

51.52I3M

51.5.I3M

51.5.I3M

51.*I3

51.

+ser Feesor all IAs,Ori!ination -.2/

&ire't&e"it -02

%oIn'ome

-1Reinstatement -0/


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O!ers in"ompromise

$orm :


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O!er in"ompromise "ontinued

Other Items of Importance(

Read the instructions

All tax returns must be )led. $or ae earne

sure you chane your tax ithholdins so yoe in the future.

D$or &elf 'mployed, 'stimated Tax Paymentspaid for the current year. Otherise, the o!erreturned.

"ollection &tatute is extended for the time a

bein considered to the time the o!er is clo< months.

Once an o!er in compromise is accepted, yoremain current ith all )lin and payin re*for the next = years after acceptance. Otherliabilities are reinstated.

If an O!er is re6ected, you have appeal riht


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Ban#ruptcy

Not all debts are dischareable in Ban#ruptc

Types of Ban#ruptcy(

8 "hapter E Asset

8 "hapter E No Asset

18 "hapter 5ReoraniFation

;8 "hapter 15%ae 'arners

Payroll Tax 3ebts and 'xcise Tax 3ebts cannoremoved by ban#ruptcy. Also, $raud based taother debts.

D"onsult a Ban#ruptcy Attorney to verify if an

debts are dischareable ith a Ban#ruptcy.


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Ban#ruptcy"ontinued

"hapter E Ban#ruptcy is also #non as Gli*uidation,H ban#ruptcy, or Gcomplete ban#ruptcy,H is the most c)led form of ban#ruptcy amon individuals. "hapter Ban#ruptcy essentially allos the debtor to ma#e a fr

Businesses that ish to li*uidate their assets and disbusiness may also )le under "hapter E Ban#ruptcy.

Chapter $$Reorgani%ation

"hapter Ban#ruptcy primarily applies to commercenterprises that ish to continue business operationsrepayin creditors throuh a court5approved reoran

Chapter $&5 is desined for an individual ho has a source of income, a desire to pay his or her debts, bu

is unable to do so. "hapter 1 Ban#ruptcy may be pr"hapter E Ban#ruptcy because "hapter 1 Ban#ruptcallos the debtor to #eep a valuable asset, such as hon house. Jnder "hapter 1 Ban#ruptcy the debtorarrane and propose a plan to the "ourt. The plan illuthe debtor ill repay creditors over time, beteen thyears. The "ourt must then approve this plan.


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"onclusion

We 'ent oer IR" Resolution (ptions fo)usinesses and Indiiduals:

Penalty Abate!ents( To types and reas

re*uests. Types of Install!ent Agree!ents andconditions

(*ers in Co!pro!ise section and co!

)an+ruptcy options and see+ing )an+Attorney

,uestions:

Contact infor!ation: artha .e la chaus

Telephone Nu!ber: &/&-&00-//10

Website: '''2adocateta3group2co!

E!ail: atggroup$4yahoo2co!
http://www.advocatetaxgroup.com/http://www.advocatetaxgroup.com/

Documents

Tax Resolution Options for Individuals and Businesses