Our firm is uniquely qualified to assist with your taxation needs. Both Raymond E. Moore and Lee A. Moore are licensed attorneys and Certified Public Accountants (CPAs). Both Lee and Ray have had extensive experience in all areas including income and estate tax return preparation, controversy and collection. The tax preparation area includes individual income, fiduciary and estate tax returns. Tax Controversy includes income and estate Internal Revenue Service (IRS) and state tax audits, IRS appeals and, federal U.S. Tax Court representation and state court tax representation.
Offer In Compromise
This tax relief is available for both federal and Missouri tax debts. It is more commonly used to obtain IRS tax relief.
Both entities allow taxpayers that cannot afford to full pay their back tax liability the opportunity to settle for less than what they owe.
The IRS and Missouri set guidelines for accepting an Offer in Compromise. They look at a taxpayer’s past, current and future financial situation when evaluating whether an Offer in Compromise should be accepted. Not everyone qualifies for an Offer in Compromise, as each person’s financial situation is different. Additionally, the length of time varies but the average generally is at least 12 months.
The Offer in Compromise process involves completing the appropriate forms, having the necessary records on hand, being compliant with the tax laws, and filing the Offer in Compromise for review. Once filed, the investigation begins of the taxpayer’s reasonable collection potential based upon his or her financial situation. Also evaluated is the taxpayer’s history of filing tax returns.
After completing its review, a determination is made either to reject or accept the Offer in Compromise. If the Offer in Compromise is rejected, another form of IRS back tax resolution may be needed, such as an Installment Agreement, Currently Not Collectible status, or Full Pay Service. If the Offer in Compromise is accepted, the offer amount is paid and the back taxes are resolved. In addition, the taxpayer must file future tax returns and make all necessary payments on time and in full.
An Installment Agreement with the IRS allows taxpayers that cannot afford to full pay their back tax liability the option to pay their delinquent taxes through monthly payments. There are guidelines regarding how the IRS determines the payment amount and time frame for the agreement. Additionally, a taxpayer must be compliant with all past tax filings before establishing the agreement.
Once an Installment Agreement has been established the IRS suspends their collection efforts and refrains from issuing wage garnishments, bank levies, sending notices and making harassing phone calls. Consideration for being on an Installment Agreement is that penalties and interest continue to accrue on the unpaid portion of back tax liability throughout the duration of an Installment Agreement. Additionally, the IRS may file a Notice of Federal Tax Lien to protect their interest until the liability is paid in full.
Currently not collectible
The IRS will place a taxpayer’s account on a Currently Not Collectible (CNC) status when they have determined that the IRS is presently unable to collect the taxes from the taxpayer by full payment and/or through an Installment Agreement. Once the account is placed on a CNC status, the IRS does not pursue collection activity against the taxpayer and the statute of limitations on the tax liabilities will continue to run. Generally, unless the taxpayer’s financial situation changes, the account will remain on a CNC status until the tax liabilities expire. Often, the IRS reviews the CNC status on an annual basis after the current year tax returns are filed to see if the taxpayer’s income has substantially changed.
Our firm offers both current year and prior year income tax preparation service. We also offer prior year tax return review services. We highly recommend our clients take advantage of electronic filing of returns and direct deposit of refunds. Unlike traditional tax preparation locations, we are open and available year round.
Tax Controversy (Audits)
Our firm has over 25 years of combined experience is handling federal, state and local tax audits. We believe it is in the client’s best interest to engage professional, competent counsel when confronted with a tax audit. A tax audit may encompass meeting with an auditor or expand as far as U.S. Tax Court. Strategically, it is often advantageous to retain a professional that is licensed to practice before the Tax Court (most tax preparers are neither licensed nor competent to represent a taxpayer in Tax Court).