Lowrance Law, LLC

IRS Shutdown-What Happens?

October 1, 2013

 The IRS shutdown will impact most taxpayer services. Automated collection activity will continue. You will receive the computer generated letters advising that you owe the IRS tax, penalties and interest. Non-automated collection and other tax processing activities will stop.

All IRS appointments related to examinations (audits), collections, Appeals or Taxpayer Advocate cases are cancelled. IRS personnel will reschedule those meetings at a later date, and who knows when that will be?

IRS will, however, process your tax payments (of course), continue computer operations to prevent data loss and revenue collections, maintain safe working conditions for essential personnel, maintain criminal tax enforcement and undercover operations, and protect all statute of limitations expirations, bankruptcy, liens and seizure cases. However, IRS will stop taxpayer services such as answering taxpayer questions, answering the telephone and providing all customer service functions.

For full report see the Department of Treasury’s complete “shut down” plan at http://1.usa.gov/18JtneJ. Also see the IRS’ detailed report on the shutdown at http://1.usa.gov/GzA1KB. Also, check out Tax Girl’s article at http://onforb.es/15Gp2do.

Good luck and remember to pay all your estimated taxes, respond to computer generated letters (maybe best to do so in writing since no one will answer the telephone).

Bill Lowrance
Lowrance Law LLC


April 15, 2011

The IRS issued a press release advising taxpayers of payment options when you file your income tax return. The release is IR 2011-42. I have placed it in the blog below. The most important thing for you to know is if you owe taxes but you cannot pay the full amount file your tax return and make a payment. Fill out and attach to your return Form 9465 — Installment Agreement Request. The IRS will contact you to work out a payment plan. Read the information below.

Remember, I am a tax attorney having worked in Office of Chief Counsel, IRS. If you have questions or need help with the IRS, just let me know.

Bill Lowrance
Lowrance Law LLC
McLean, VA

IRS reminds taxpayers with a balance due that there are several payment options available [IR 2011-42]: Taxpayers who have a balance due when they file their 2010 federal individual income tax returns have several payment options.

Payments can be made by electronic funds withdrawal, credit or debit card, the Electronic Federal Tax Payment System, or check or money order. According to IRS, some taxpayers who itemize their deductions may be eligible to claim as a miscellaneous itemized deduction the convenience fee charged to pay individual income taxes by credit or debit card.

Along with a check or money order, a taxpayer must include Form 1040-V, Payment Voucher. If a return has already been submitted but additional payment is due, a check or money order should be mailed to IRS with Form 1040-V. “For members of the military and others serving in combat zones, the filing and payment deadline is normally postponed until at least 180 days after the service member leaves the combat zone,” IRS said. “If you are eligible, you get the extra time without having to ask for it,” IRS added.

The agency advises taxpayers with a balance due to pay as much as possible by April 18 to avoid penalties and interest. Those who cannot pay in full have several options to consider. The first is an installment agreement. In most cases, this can be done in several minutes by using the IRS website, the agency said. The second payment option is an Offer in Compromise, which is an agreement between a taxpayer and IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. It is subject to acceptance based on legal requirements. The news release can be viewed on the IRS website.


Got A Letter From The IRS? What To Do?

April 13, 2011

The IRS just sent out IRS Tax Tip 2011-73. The notice gives you the IRS view of what to do if you receive a letter from the IRS. Read this over and do not panic. If you need assistance with the IRS, please contact me at 703 506 1600. I handle audits, examinations and litigation […]

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More Employment Audits–Independent Contractor vs. Employee

May 21, 2009

The IRS is planning more employment tax audits and examinations over the next three years.  A national research project is underway right now and the IRS has announced that it will conduct detailed employment tax examinations of certain taxpayers.  The selection process for taxpayers has begun and the program will last for three years. The […]

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TIGTA Audits IRS 2008 Report To Congress

January 6, 2009

The Treasury Inspector General for Tax Administration (TIGTA) is the only government entity that conducts internal audits the IRS.  Well, now you can read the most recent interesting report that covers their audit April 1, 2008 through September 30, 2008.  The report is TIGTA’s semiannual report to Congress. There are some “blockbuster” (technical tax term) statements and […]

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Small Business Tax Information

October 30, 2008

IRS has a great Small Business web page at IRS Business.  Check out starting, operating or closing a business at Start/Close Business.  Also, check the latest business news that gives small business owners information about the latest mileage rates, worker classification (employee vs. independent contractor) and other announcements See Business News.  Get the IRS information […]

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Withholding Taxes From Your Paycheck

October 29, 2008

Most businesses withhold payroll taxes from employees’ salary checks.  Taxes withheld are income, social security and medicare payments.  Other withholding items are for State taxes, retirement funds and unemployment funds. Right now in the hard economic times, business owners may be tempted to use the money they deduct from their employee’s wages for other expenses.  The only […]

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International Tax Law Foreign Bank Accounts & You

October 20, 2008

  You may not think international tax law applies to you, but it may.  Do you have a bank account outside of the United States?  If so, you are supposed to report it on your tax return.  There is a check box on the tax return to report any foreign bank accounts.  If you do […]

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States To Increase Tax Enforcement Efforts

October 11, 2008

   According to an Associated Press article, many states are increasing tax enforcement and collections efforts as state revenues decline in our present economic condition. States like New York, California, Massachusetts and Illinois are “beefing up” tax enforcement and collections.  You can believe Virginia will, and is, doing the same thing.  Sometime ago Virginia contracted with a collection agency […]

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