IRS Collection and Examination Issues

The IRS has a new option regarding an online payment agreement.

The online payment agreement program is currently available to tax professionals; however, eventually the online payment aggrement will be available to all taxpayers via the IRS website,

The online payment plan applies to cases up to $25,000 for individual tax obligations expected to be paid within five (5) years.

There is a $43.00 fee to set up the payment plan and there is an online payment calculator to help determine acceptable payment agreements based on income and expenses.

Changes have been made to the Offer in Compromise program.  In order to request an offer in compromise a 20% deposit is required with the offer.

Be careful with the IRS collections as the IRS has recently started using private collection agencies.  When a private agency is used to collect IRS liabilities, the taxpayer has the same rights aforded the taxpayer by the IRS.

Sole Proprietors/Self-employed businesses are expected to be audited more than they have been in the past.  The IRS has determined that sole-proprietorships have relatively low reporting rates.  There is more information available at pag=571

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