Resolving Tax Debts Presented by Eric L Green

Resolving Tax Debts Presented by: Eric L. Green, Esq. Bruce Patz, CPA

Eric Green, Esq. Managing partner in Green & Sklarz LLC, a boutique tax firm with offices in Connecticut and New York. Focus is civil and criminal taxpayer representation before the Department of Justice Tax Division, Internal Revenue Service and state Departments of Revenue Services. Has served as a columnist for CCH’s Journal of Practice & Procedure. Attorney Green is the past Chair of the Executive Committee of the Connecticut Bar Association’s Tax Section. Eric is a Fellow of the American College of Tax Counsel (“ACTC”). Resolving Tax Debts 2

Eric Green, Esq. Eric is the host of the weekly Tax Rep Network Podcast, available in ITunes, Apple Podcasts and Google Podcasts Eric is the founder of Tax Rep Network, an online community designed to help tax professionals build their IRS Representation Practice He is the author of the Accountant’s Guide to IRS Collection and the Accountant’s Guide to Resolving Tax Issues Resolving Tax Debts 3

Bruce Patz, CPA As owner of the Boston branch of Associated Human Capital Management, and after 22 years in the payroll industry, Bruce Patz understands that both customer service excellence and superior problem solving are what really sets Associated HCM apart from its competition. Bruce holds a B. B. A. in Accounting and Business Management from The University of Michigan and earned his CPA certification in 1994. As a CPA, Bruce exudes strength of character, a strong moral compass and as a life- long learner is always seeking to broaden his skills and knowledge. Resolving Tax Debts 4

Summer Speaker Series https: //gs-lawfirm. com/program-associated-hcm-speaker-series/ Watch Videos of the past three: 1. Dealing with Non-Filers 2. Ethical Conundrums in Tax Practice 3. Payroll Tax Train Wreck Register for FREE for the final in the series: Penalties & Penalty Abatement on 8/7/2020 Resolving Tax Debts 5

Why Collection is HOT and Getting Hotter… Resolving Tax Debts 6

Non-Filers More than 7 million (Before COVID-19) Resolving Tax Debts 7

IRS Collection Process • Assessment of the tax • 10 -Year Collection Statute • Billing Notices • Threat to levy and right to a hearing • Appeals (CDP, Equivalent, CAP) • Resolution Resolving Tax Debts 8

Step #1: Tax Compliance • All returns filed that are due as of this date • Current tax period payments being made a) Proper withholding b) Estimated tax payments c) Payroll tax deposits Resolving Tax Debts 9

Inside Secret • What is compliance for tax returns? • Last 6 years – IRM 1. 2. 14. 1. 18 Resolving Tax Debts 10

IRS Collection Process: Assessment • The IRS will assess the tax when the return is received and processed or it creates a “substitute for return” (SFR) for the taxpayer • Pull transcripts to determine the exact date of assessment Resolving Tax Debts 11

IRS Collection Process: 10 -Year Statute • Pursuant to IRC § 6502 the IRS has 10 years to collect a tax debt • The 10 -year statute begins upon the date of assessment, not the date of filing • There a number of actions that will toll, or suspend, the collection statute Resolving Tax Debts 12

IRS Collection Process: 10 -Year Statute • Taxpayer files bankruptcy—IRC § 6503(h) • The time for a bankruptcy plus six months! • Filing of a Collection Due Process hearing request—Regulation § 301. 6330 -1(g) • Filing of an Offer in Compromise—Regulation § 301. 7122 -1(i) • Pending Installment Agreement — IRC § 6331(i)(5) Resolving Tax Debts 13

Transcripts • This is why we pull transcripts • How much time remains will drive the decision on how to resolve the tax debt • Need to review the Transcripts for things the taxpayer has done that may have tolled (extended) the statute Resolving Tax Debts 14

Calculate the CSED Dates Resolving Tax Debts 15

Resolving an Outstanding Debt Installment Agreement Uncollectable Offer-in. Compromise Bankruptcy Resolving Tax Debts 16

Initial Considerations • Statute of Limitations • Compliance • Financial Analysis • • RCP Easier Solution? CNC or Bankruptcy? Resolving Tax Debts 17

Reasonable Collection Potential • Gross monthly income • Allowable expenses • Determine future income • Net equity in assets (QSV) • FI + NE = RCP Resolving Tax Debts 18

Resolving a Federal Tax Debt: Installment Agreements • There are three types of Installment Agreements 1 • Streamlined 2 • Regular 3 • Partial-Pay Resolving Tax Debts 19

Resolving a Federal Tax Debt: CNC What is Currently Not Collectable, or “CNC, ” status? How CNC status is determined? When should you seek CNC status? Time to file an Offer? Resolving Tax Debts 20

Practitioner Secret 1 -year rule & 6 -year rules: IRM 5. 14. 1 (not if a partial pay) Resolving Tax Debts 21

Offer in Compromise Three types of Offers: Doubt as to liability Doubt as to collectability Effective Tax Administration Resolving Tax Debts 22

Offer in Compromise Lump Sum Deferred • Paid in 5 or fewer payments • Paid in more than 5 but less than 24 monthly payments • Payments must be made starting when the OIC is filed Resolving Tax Debts 23

Offer in Compromise $205 application fee 20% deposit with a lump sum offered Monthly payments with deferred offers start when the offer is filed and continue until accepted or rejected Resolving Tax Debts 24

Low-Income Certification (656 Page 2) Resolving Tax Debts 25

Keeping your Tax Dollars Safe Presented By Bruce Patz – Associated Payroll & HCM 617 -435 -2239 bpatz@associatedhcm. com

Payroll Company must do the following: Perform credit check on each new client Do not offer direct deposit to clients that are not credit worthy Ensure fraudulent people/entities are not onboarded as clients Carry proper insurance: crime coverage, cyber security coverage, etc Reconcile tax accounts on a daily basis. Amount of cash in tax account vs liability report from payroll software Segregation of Duties in payment, reconciliation functions with multiple people involved

Possible Signs of an issue with Payroll Company Many unexplained tax notices of non payment Notices with partial payments of liabilities Payroll company not willing to give proof of tax payments Payroll fees that are way too low compared to marketplace/competition

Protect Yourself Against Payroll Company Fraud Get a good referral from accountant Check online for any negative news/press about company Check Monthly/Quarterly independently that payroll company is doing filings and making payments by reviewing Quest, Mass Tax Connect and EFTPS Ensure any letter of non filing and non payment is resolved in a timely manner and there is documentation of resolution

Contact Us Bruce Patz - Owner Associated HCM, Total HR Solutions bpatz@associatedhcm. com 617 -435 -2239 bpatz@associatedhcm. com

CPA Academy Special! Use Discount Code GS 10 and save 10% on any or all of the books! www. TGPublish. com Resolving Tax Debts 31

The Biggest Tax Screw Ups Learn from Cases I Screwed Up, So You Won’t July 13, 2020 | 1 pm – 4 pm Eastern | via Live Webinar Brilliant people watch others make the mistake and avoid it altogether… LET’S BE BRILLIANT! Join us for this very entertaining and enlightening three-hour special workshop where Tax Attorney and National Speaker Eric Green will walk you through the cases he has screwed up the worst in the last 23 years, the lessons you should take from and how to apply those lessons when you have cases in your office. During the program Eric will review the client situation, what he did and review what should have happened. REGISTER TODAY FOR EARLY BIRD $99 Early Bird ends 7/9 Midnight, then $149 CLICK HERE TO REGISTER NOW Or copy and paste this link: https: //taxrepllc. com/program 20200713 -biggest-tax-screw-ups/ Due to the in-depth nature of this workshop, attendance is limited to 100 attendees so all attendee questions can be answered.

How to Win an Innocent Spouse Case: The Workshop July 21, 2020 | 1 pm – 5 pm Eastern | via Live Webinar An In-Depth HOW-TO from Start to Finish! Join Eric Green as he walks you through the innocent spouse case from start to finish. The program will review joint liability, what practitioners should consider BEFORE they file the return, and what to do with the client that now owes a liability they do not believe they should be responsible for. The workshop will also review how to document your client’s case, how to complete Form 8857, and how to prepare and handle the Appeal. REGISTER TODAY FOR EARLY BIRD $199 Early Bird ends 7/16 Midnight, then $299 CLICK HERE TO REGISTER NOW Or copy and paste this link: https: //taxrepllc. com/program 20200721 -innocent-spouse-workshop/ Due to the in-depth nature of this workshop, attendance is limited to 100 attendees so all attendee questions can be answered.

The Ultimate Payroll Tax Resolution Workshop Thursday July 23 rd, 1 pm – 5 pm, 4 ce/cpe hours How to resolve your client’s worst payroll tax case Including case studies with all the forms completed, downloadable letters and checklists to use in your practice Limited to 100 attendees so all questions can be answered Early bird $199 until 7/20, after that $299 Register by 7/20 and get the digital edition of the Accountants Guide to Resolving Payroll Tax Debts FREE! Register Here: https: //taxrepllc. com/program-20200723 -payroll-tax-train-wreck/ Resolving Tax Debts 34

Questions? Also remember…. More than 7 million Eric Green – Green & Sklarz LLC Ph. (203) 285 -8545, Ext 102 egreen@gs-lawfirm. com Bruce IRS announcing a new initiative to go after them – Associated Payroll Patz & HCM 617 -435 -2239 bpatz@associatedhcm. com Resolving Tax Debts 35