Getting to know the IRS payment plans

Here is my Accounting Today article on the simple IRS payment plans – the 36-month plan (guaranteed installment agreement), 72-month plan (streamlined installment agreement), and the 84-month payment plan (84-month pilot program for those who owe between $50,000-$100,000).

The eternal question: What are a taxpayer’s chances of an IRS audit?

My Accounting Today article on the chances of an IRS audit. There are certain types of taxpayers and taxpayer profiles that stand a higher chance. Here is the data.

Jim’s articles

Jim is regularly published in various tax industry publications and news articles.  Most of the articles from Jim are listed below.

Browse published articles by IRS problem topic:

 

Why Wesley Snipes’ offer in compromise went sour

My Accounting Today article on the continuing trials and tribulations of Wesley Snipes and the IRS.    Wesley Snipes and his counsel missed a very important element of the offer in compromise program:  the dissipated asset rule.    The moral of the story:  you can shed your assets and then try to not put them in the offer amount as part of an OIC.    OIC offer amounts is your “reasonable collection potential” – the formula is your net equity in assets (including any assets dissipated three years prior to the OIC application) plus amount that would be paid if you were to have an installment agreement with the IRS.  As you can expect, the OIC went south after the IRS asked about the dissipated assets.

The Fundamentals of the IRS OIC Program

If you are considering an IRS offer in compromise, here are 14 basic principles you need to know.  My Accounting Today article highlights many of the details and answers the important question:  do you qualify for an OIC?

Take a closer look at these four clients before filing their returns

Four taxpayer profiles that are prime targets for IRS audits.  Here is where some prevention and extra due diligence may go along way if the return ever comes under audit.  My AICPA CPA Insider article analyzes the IRS interest in the four taxpayer profiles and the extra due diligence you can perform before filing to prevent an IRS audit problem.

IRS expands eligibility for worker reclassification program

Worker status determinations – that is, whether a worker is an employee or independent contractor – is an issue in every IRS business audit.  The costs of getting worker reclassification can be great. There are several IRS amnesty programs that businesses should consider.  My AICPA CPA Insider article highlights these programs and alternatives.

Six myths that lead to worker misclassification

Worker status issues – that is, whether a worker is an employee or an independent contractor – can have detrimental tax effects if you get the classification wrong.  My AICPA CPA Insider article gives you six myths that are often relied on to claim that a worker is incorrectly classified as an independent contractor.

 

How the IRS uses information statements for compliance

The IRS gets almost 3 billion information statements (Forms W-2/1099, etc.) a year and uses them for compliance.  Here my AICPA CPA Insider article on the IRS information statement matching programs and how they work.

IRS offers collection alternatives for your financially distressed clients

If you owe taxes and cannot pay, here are the four alternatives with the IRS and how they work.  My AICPA CPA Insider article is a overview of the options and what is often utilized by taxpayers and their tax pros.