Law Office of GERALD W. KELLY, ESQ.
IRS Collection Cases
The Internal Revenue Service (“IRS”) has sweeping administrative powers that it aggressively employs in collecting federal tax obligations. The IRS is able to attach bank accounts, business receivables, wages, and seize property, both real and personal. Therefore, the first priority in these cases must be to remove the threat of enforcement action. If collection activity has already begun, immediate steps must be taken to bring the situation under control.
Next, a comprehensive strategy must be implemented, based on the specific facts and circumstances presented. The successful resolution of cases in this practice area requires a thorough familiarity with current IRS collection procedures and the institutional culture of the agency. There are often multiple avenues, or procedural devices, for seeking relief within the IRS. Selecting the right one is of paramount importance.
I have represented many clients in the following types of cases:
Copyright © 2006-2019, Gerald W. Kelly, Esq.
Being a former Revenue Officer of the IRS Collection Division and having 13 years of experience as an attorney representing taxpayers, I am well versed in the procedures that can be used to effectively resolve challenging collection cases.
An Offer in Compromise (OIC) is a method for settling a balance owed to the Internal Revenue Service for less than the full amount due. Resolving a case for “pennies on the dollar” is no simple matter. The amount of an OIC is based on a taxpayer’s assets and not the amount of tax owed. Therefore, the starting point to determine if an OIC is a viable option is an analysis of current assets and projected future income. Complex formulas are employed by the IRS to determine the amount a taxpayer can pay. A successful OIC requires a thorough familiarity with the IRS's formulas and OIC practice and procedure.
There are important safeguards in place that protect the rights of taxpayers with debts to the IRS. One of the most powerful is the right to request a Collection Due Process (CDP) Hearing prior to the IRS taking enforcement action, which includes bank attachments, wage garnishments, and the physical seizure of property. This hearing must be requested on a timely basis. CDP Hearings, as well as Equivalent Hearings, provide the taxpayer with an excellent forum for resolving their tax issues. Alternatives to enforced collection measures can be proposed, such as an installment agreement or OIC, and others forms of relief can be requested, such as an abatement of penalties or innocent spouse relief. Read our published article: Will the IRS believe that you are an Innocent Spouse?
If a taxpayer can demonstrate "reasonable cause" for the failure to file a tax return or to pay a tax obligation timely, the IRS will abate assessed penalties. The penalties imposed are, in many cases, significant. For example, the filing of a tax return more than five months after the due date results in a late filing penalty of 25% of the tax stated on the return. Businesses that fail to file employment tax returns and make federal tax deposits can face penalties of more than 40% of the initial tax due. It is imperative that the request for abatement of penalties be presented in a timely manner, in the proper format, and to the appropriate office of the IRS.
Additional Forms of Assistance
Other avenues for resolving a balance due account with the IRS include, but are not limited to, currently not collectible status, an installment agreement, and innocent spouse relief. There are also situations where a Federal Tax Lien might be hindering your ability to sell or obtain a loan against real property, or to obtain credit. It is possible to obtain relief in these situations, as well.
Never Ignore a Collection Notice from the IRS.
Offers in Compromise
Due Process Appeals
Innocent Spouse Claims
Estimated (SFR) Tax Assessments
Expired Collection Statutes
Improper Levy/Seizure Action
High Income Non-Filers
Penalty and Interest Abatements
Subordinations/Discharges of Tax Liens
Trust Fund Recovery
IRS tax attorney Gerald W. Kelly is a former IRS Revenue Officer. He resolves civil and criminal tax problems in Maryland, DC, Virginia, and throughout the United States. The tax law firm provides help with IRS Offer in Compromise, IRS tax audit, IRS collection, IRS appeals, IRS litigation, US Tax Court, employment taxes, IRS levy, IRS lien, IRS seizure, IRS criminal investigation, IRS responsible person assessments, IRS trust fund recovery penalty, unpaid business employment taxes, and all other major IRS problems. The law firm is located in Columbia, Maryland (MD).
10320 Little Patuxent Parkway
Columbia, MD 21044
(443) 542-0069, Facsimile