For individuals and businesses facing tax challenges in Diamond Bar, CA, understanding the intricacies of estimated tax payments is crucial, especially when considering an Offer-In-Compromise (OIC). At Christopher G Carmona CPA, APC, we specialize in IRS problem solutions and tax debt relief. In this blog, we'll dive into the calculation of estimated tax payments and how they play a role in the OIC process.

Public accountants help with tax levy preparation and filing. They also assist with asset protection, estate planning, bookkeeping and accounting. They provide information about tax laws and regulations along with helping with asset protection and estate planning.

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The Revenue Officer will often seek interviews with those individuals it believes are responsible for the unpaid payroll taxes. The reason is that it helps the IRS determine if there were other individuals who should be considered as responsible parties and pursued for the Trust Fund assessments. The Revenue Officer will conduct the interview utilizing its Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Taxes.  There are issues with the IRS Form 4180. This Form used to be eight pages long in 2003. It is now three pages long. In an…

A fraudulent conveyance is where the tax debtor transfers assets to a third-party with the object or the result of placing the property beyond the reach of the creditor or hindering the creditor’s ability to collect a valid debt. A fraudulent transfer also occurs when property is transferred without fair consideration.  Taxpayers who attempt to frustrate collection by transferring away assets that the IRS lien has attached to are usually subject to this claim of fraud, and these liens would be filed against the recipient of the assets. Christopher G. Carmona CPA,CFE Orange County, USA 

Just because someone had signature authority does not mean they ever used that authority or had any knowledge of the tax problems. A critical piece of information to support a client’s defense that they did not sign payroll checks or even other checks would be copies of the cancelled checks. Like the bank signature card, a copy of these checks may be in the administrative file you obtain through the FOIA request. If they are not, the client may need to obtain copies from the bank. You need to review cancelled checks to determine that the client: A. did not sign…

The PDC (Private Debt Collection) can contact the taxpayer and attempt to get either full-paid or get the taxpayer into a payment arrangement. The PDC can not take any enforcement action, meaning they have no right to levy the taxpayer.  The PDC also has no authority to compromise a debt or abate tax penalties. For those taxpayers who claim to be in uncollectible status, the PDC would send their case back to the IRS to be worked. It is possible for taxpayers who prefer to work with the IRS to request in writing that their account be sent back to the…

If an employer owes money to the IRS and can pay that liability back in full in short order, then the IRS will resolve the case that way. If, however, the employer will be unable to repay the liability back quickly then the IRS will begin trying to determine which owners and/or employees were responsible for the company’s failure to pay over the payroll taxes.  Once the IRS determines who it believes is responsible for the company’s failure to collect and remit the payroll taxes, it will begin the procedures to assess those individuals for the unpaid trust fund portion of…

A streamlined installment agreement is very similar to the automatic installment agreement. If a taxpayer meets the following criteria, they can simply make a phonecall to the IRS and arrange an installment agreement: • The taxpayer owes less than $50,000 • The taxpayer has not had a back-tax debt or an installment agreement in the last 5 years • The taxpayer agrees to full pay the liability within 72 months or before the Collection Statute Expiration Date (“CSED”), whichever occurs first. Just like an automatic agreement, with a streamlined agreement the taxpayer does not have to provide any financial information. The taxpayer can…

Taxpayers and practitioners who wish to seek TAS’s help can do so by filing a Form 911, Request for Taxpayer Advocate Service Assistance. The form is completed and faxed to the taxpayer’s local TAS office. A complete listing of these offices is available on the TAS website. After filing the Form 911 with the local TAS office, the practitioner will receive a phone call from a TAS representative within 48 hours to discuss the taxpayer’s situation.  TAS (Taxpayer Advocate Service) can be extremely helpful in helping clear up system and procedural issues within the IRS, as well as, with advice for the practitioner…

The tax in question must have been assessed more than 240 days prior to the bankruptcy (plus any period of time during which an offer incompromise was pending, plus 30 days). An amended return, an examination of a return, or an audit may trigger a new or second assessment showing an increase in the tax claim.  If any of these events occur, the subsequent audit assessment triggers a new 240-day period applicable to the increase in the tax assessment. The original portion of the tax, if dischargeable prior to the audit, would still be dischargeable.

A late-filed tax return must have actually been filed more than two years before the bankruptcy petition date. In order for a document to be considered a ‘return,’ under either the bankruptcy or the tax laws, it must purport to be a return; be executed under penalty of per jury; contain sufficient data to allow calculation of tax; and represent an honest and reasonable attempt to satisfy the requirements of the tax laws. Therefore, although a substitute for return SFR (Subsitute For Return) generally doesn’t count as a return, if the debtor signs the SFR (Subsitute For Return) it may constitute…

If the taxpayers have a CDP (Collection Due Process) hearing, they are able to raise the underlying liability; however, they must do it at the first opportunity. What this means is that the taxpayer must raise the issue of the liability when they are allowed their first CDP (Collection Due Process) hearing, whether that notice is for the threat to levy or the filing of the NFTL (Notice of Federal Tax Liens). The taxpayers can raise the issue when they file the Form 12153 by checking “Other” at the bottom of Box 8 and writing in the explanation that they don’t believe…