I represent tax payers in the greater St. Louis area and state of Missouri. Recently statistics released by the IRS indicates that enforcement is on the rise. Levies of bank acccounts and other assets increased over 7% from the prior year. Now you have been contacted by the IRS and they want to be paid. What are your options to deal with this?
The Internal Revenue Manual (IRM5.16.1) allows the IRS to declare an account currently not collectable. What exactly does that mean?
This occurs after the IRS has reviewed a tax payers financial statement and determines that he or she in unable to pay any tax liablitiy at this time. Tax payers are required to fill out a collection financial information statement(Form 433 A or B) depending on if it is an individual or business. In the past the IRS occasionally declared accounts uncollectable while continuing to levy a tax payers wages.
Under the Internal Revenue Code IRC 6343 this prevents this from happening. Once the IRS has determined that the account is uncollectable it must stop taking a tax payers wages. In the past it was common for the IRS to sieze assets without determining the ability to pay.
Even the most powerful collection agency in the world sometimes can't collect all of it's account's receivables. The IRS is now resorting to retaining private collection agencies to collect currently not collectable accounts.
Being placed in currently not collectable is a temporary solution to a permenant problem. Every 18- 24 months accounts are flagged for review and a tax payer can be put back to an active collection status.
Options like an Offer in Compromise or other payment arrangements should be considered if at all possible. When tax returns are filed and refunds are due the IRS will intercept them and offset your balance due as well as the state you reside in. Expect liens to be filed against all assets and property to protect the IRS's position.
If you or someone else you know are having IRS tax issues feel free to contact me @ 636-397-2759, 888-490-9744 or on my cell @636-866-4554 or by email at steveshapiroea@gmail.com
Arch Tax Solutions
Steve Shapiro, EA
620 S. Benton St.
St. Charles, MO 63301
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