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Furthermore you may have already extended the statute of limitations on the collection period without even knowing it. If you had entered into an installment agreement with the IRS, then this installment agreement stops the clock from running. If you default on your installment agreement then the clock starts running again.
This check list will help you weed out the tax relief scammers, as well as the merely inept attorneys and CPAs out there who will leave you with their high fees, your original tax debt, plus additional penalties and charges.
In fact, don't bring to an audit any documents that do not pertain to the year under audit, or were not specifically requested by the audit notice.
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One of the best ways to settle IRS taxes for less than you owe is with an offer in compromise. While many people have their sights set on an offer in compromise, not everybody has the ability to use this to their advantage.
Reasonable cause for late filing includes:- The death or serious illness of the taxpayer or an immediate family member of the taxpayer,the unavoidable absence of the tax payer on the filing date; or the construction of the taxpayer's business or personal residence.
Some taxpayers may be exempt from the fee depending on their income or whether or not the offer is based strictly on doubt as to tax liability. Taxpayers who claim the poverty guideline exception are required to certify that they are eligible by filing Form 656-A, Income Certification for Offer in Compromise Application Fee.
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