IRS Temporarily Halting Passport Revocations for Some Taxpayers

NSTPInternal Revenue Service (IRS), Overdue Tax Bill

IRS to Temporarily Halt Passport Revocations for Some Taxpayers

IRS Temporarily Halting Passport Revocations for Some Taxpayers Memorandum for Taxpayer Advocate Service Employees NTA Blog In a memorandum to Tax Advocate Service (TAS) employees, the TAS has stated that the IRS will temporarily decertify taxpayers with open TAS cases. Decertification means that taxpayers with seriously delinquent tax debts will, temporarily, not be at risk of having their passports revoked by the State Department merely because of those seriously delinquent tax debts. Background. Code Sec. 7345 authorizes (but does not require) the IRS to certify a taxpayer's seriously delinquent tax debt to the State Department for the purposes of passport denial, limitation, or revocation. A seriously delinquent tax debt is an assessed individual tax liability exceeding $50,000 (adjusted for inflation) for which either a notice of federal tax lien has been filed or a levy has been made. IRS must also send a decertification to the Department of State where the certification was in error or where there is no longer a seriously delinquent tax debt. (Code Sec. 7345(b)) The Internal Revenue Manual provides details as to how the IRS certifies and decertifies a taxpayer. (IRM 13.1.24) A decertification protects the taxpayer's passport from being denied, limited, or revoked. The … Read More

INSTALLMENT AGREEMENT COSTS/FEES AND THE ONLINE PAYMENT AGREEMENT

NSTPInternal Revenue Service (IRS), online payment agreement, Overdue Tax Bill

If you have an overdue tax bill, an IRS installment agreement may be an option. An installment agreement is a payment plan that allows you to pay over time. However, these payment plans are not free. Paying your taxes late means penalties, interest and fees. Understanding these penalties, interest and fees will help keep your overdue tax bill to a minimum. The first thing to know is that the penalties and interest continue to grow until you pay off your tax debt. They can quickly grow to be much more than the one-time set-up fees the IRS charges, the IRS calls these user fees. The biggest penalty is for filing a balance due return late. There is another penalty for paying late. And on top of that, there’s interest. All these costs get bigger the longer you delay. So file on time even if you owe. Pay as much as you can before your return is due. And if you still owe, set up an IRS payment plan as soon as possible and pay off the balance as fast as you can. If you can afford a payment plan of 120-days or less, that’s your best option. You’ll keep your penalty and … Read More

STREAMLINED PROCESSING OF INSTALLMENT AGREEMENTS

NSTPInstallment Agreements, online payment agreement

The IRS is testing expanded criteria for streamlined processing of taxpayer requests for installment agreements. The test is scheduled to run through September 30, 2017. During this test, more taxpayers will qualify to have their installment agreement request processed in a streamlined manner. Based on test results, the expanded criteria for streamlined processing of installment agreement requests may be made permanent. During the test period, expanded criteria for streamlined processing will be applied to installment agreement requests submitted to SB/SE Campus Collection Operations, this includes the Automated Collection System (ACS). Expanded criteria will not be applied to installment agreement requests submitted to W&I Accounts Management, SB/SE Field Collection or through the Online Payment Agreement application. The program will streamline payment plan set-up for more taxpayers, by: Increasing the dollar threshold for expedited processing from $50,000 to $100,000, if taxpayers agree to pay by direct debit from a financial account or payroll deduction. Increasing payment terms from 72 months to 84 months (subject to collection statute limitation). Removing the requirement to submit financial condition documentation that’s normally required for all installment agreements on balances of more than $50,000. However, an important distinction of the test program is that the IRS will … Read More