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5 Recent Changes to IRS Collection Procedures

Recently, joint research from the Internal Revenue Service and the Urban-Brookings Institute highlighted the results of many IRS enforcement activities, including the impact of past years’ changes to IRS Collection policy.

It is no secret that the IRS has been kinder and gentler to tax debtors during the past five years.

 
The 2012 Fresh Start Initiative and the relaxing of lien filings and levies during the past five years has relieved burden on taxpayers and the resource-constrained IRS.


However, this more relaxed policy hasn’t resulted in maximizing collection for the U.S. Treasury. The IRS continues to tweak its collection policies and procedures to collect the most tax dollars.

 
During the past five years, new laws and IRS administrative changes to collection policy have been frequent, and can be hard for taxpayers and tax professionals to keep up with. This year has been no exception; in fact, 2017 has seen these six important changes to IRS collection policy.
 
  1. Private Debt Collection Begins
  2. Government revokes passports for taxpayers with seriously delinquent tax debt.
  3. The offer in compromise program gets strict on filing compliance the IRS is traditional out taxpayers some extra time to file all their required returns during the application process for an offer. Those days are over. A recent change requires taxpayers to file all the required returns before applying for this tax that settlement agreement. Taxpayers have been filed and the IRS rejects their offer out right. The IRS gets to keep the down payment which can be as high as 20% of the offer amount.
  4. Standard collection expense limits increased and
  5. The IRS is testing fastener processing for certain high debt installment agreements $100,000. 

Real Tax Problems Require a Real Tax Attorney!

 

 

Contact the Tax Lawyers at 

Marini & Associates, P.A.  

 

 
for a FREE Tax Consultation
Toll Free at 888-8TaxAid (888) 882-9243

 
 
 

Read more at: Tax Times blog

Tax Relief for Victims of Hurricane Irma in Florida is Over!!!

After 4 1/2 months of no activity, the IRS is back in Florida as of February 1, 2018. 
   
After Hurricane Irma in September, a disaster declaration FL-2017-04 was issued in all 67 counties of Florida. The IRS was told to back off all taxpayers until February 1, 2018. 

The good news for delinquent taxpayers is that the IRS has not contacted them or made any demands for payment or financial information. There have been no lien filings or levies of wages and bank accounts.

Well that is Over ... The IRS is Back with a Vengeance!

We have seen that the IRS is now aggressively pursuing these cases that have been on hold since September 2017.

Have an IRS Tax Problem?
 
 
 
 Contact the Tax Lawyers at 

Marini & Associates, P.A.  

 
 
for a FREE Tax Consultation

Toll Free at 888-8TaxAid (888) 882-9243


 

Read more at: Tax Times blog

Treasury Scrapping Nearly 300 Tax Rules & Regulations

According to Law360, the U.S. Department of the Treasury intends to scrap nearly 300 tax rules in keeping with President Donald Trump's executive orders to cut back on regulatory burdens, according to proposed regulations released Tuesday.

Treasury is proposing to remove 298 regulations it says are no longer necessary because they have no current or future applicability and to amend 79 other regulations that reference them.

Removing the rules will "reduce the volume of regulations taxpayers need to review; and increase clarity of the tax law,” Treasury said.

The regulations on the chopping block interpret provisions of the Internal Revenue Code that have either been repealed or significantly revised and do not account for statutory changes, as well as expired temporary regulations, the agency said. 

Need Tax Help?

 
 
We Can Advise on How These Reduced Regulations
Can Benefit You!
 
Contact the Tax Lawyers at 
Marini & Associates, P.A.  
 
 
for a FREE Tax Consultation
Toll Free at 888-8TaxAid (888) 882-9243



Read more at: Tax Times blog

IRS Issues Guidance on Changes in Accounting Periods Related to the Transition Tax

The Treasury Department and the Internal Revenue Service (IRS) issued IR-2018-25 and announced modifications to the procedures for changing the accounting period of foreign corporations owned by U.S. shareholders that are subject to the transition tax under the Tax Cuts and Jobs Act.

On Dec. 29, 2017, the Treasury Department and the IRS provided initial guidance on computing the transition tax in Notice 2018-07.  On Jan. 19, 2018, the Treasury Department and the IRS provided additional guidance in Notice 2018-13.

Today’s revenue procedure (Rev. Proc. 2018-17) prevents changes to the annual accounting periods of certain foreign corporations in 2017 under either the existing automatic or general procedures if such change could result in the avoidance, reduction, or delay of the transition tax. 


The tax laws generally provide that a taxpayer seeking to change its annual accounting period and use a new taxable year needs to get the approval of the IRS.

In general, the newly enacted section 965 of the tax code that was included in the Tax Cuts and Jobs Act imposes a transition tax on untaxed foreign earnings of foreign subsidiaries of U.S. companies by deeming those earnings to be repatriated.

Foreign earnings held in the form of cash and cash equivalents are taxed at a 15.5 percent rate, and the remaining earnings are taxed at an 8 percent rate. The transition tax generally may be paid in installments over an eight-year period.

The new revenue procedure was issued to prevent the avoidance of the purposes of section 965 through changes in the taxable years of certain foreign corporations, such as controlled foreign corporations that are effectively subsidiaries of U.S. corporations.  

Rev. Proc 2018-17 will be published in IRB 2018-09 on Feb. 26, 2018. 

Need International Tax Help?
 
 
We Can Advise on How These Tax Cuts Can Benefit You!
 
Contact the Tax Lawyers at 
Marini & Associates, P.A.  
 
 
for a FREE Tax Consultation
Toll Free at 888-8TaxAid (888) 882-9

 
 
  

Read more at: Tax Times blog