Clients most commonly asked questions:
1. How long does an OIC take to get a response? The OIC process can take anywhere from 9 months to a year. However, there have been times when it has taken up to 2 years – if it surpasses 2 years and you never hear back from the IRS it can be considered an accepted offer.
2. I missed the deadline to file a tax petition to respond to my notice of determination is there anything else I can do? You can potentially have two options. If the liability stems from an Audit you can request an audit reconsideration or you can file an Offer in Compromise and select the “doubt as to liability”. For both these methods you need to have new supporting documents to prove that the liability assessment is incorrect.
3. Is there a statute of limitation for IRS liability? Yes, it is 10 years from the date of assessment.
4. Do I have to file a tax return after the IRS has filed a return on my behalf? It depends, it is called an SFR (Substitute for Return) If your liability will decrease it is highly advisable to do so but if your liability will stay the same then it’s best not to since by doing so you can possibly extend the statute of limitation date.
5. Why am I receiving a cancellation notice regarding my installment agreement? There are many reasons why this could happen but the most common reason for that would be that the taxpayer created another new liability. For instance if the taxpayer set up an installment for old balances and they file their current tax year return and created another new liability then the IRS, as well as most State Agencies, will default the installment plan. Most likely, that taxpayer will have to submit new financials with an updated 433A or 433F form.
6. If I haven’t filed for 9 years do I need to file all 9 year returns? On a rare occasions, the IRS may ask you to file all 10 years but for the most part your filing requirement is for the past 6 years. Sidenote: the IRS will normally not have records to the taxpayers wage and income transcripts past the 10 year mark.
7. I have to file old tax returns but I don’t have the paperwork? You can call the IRS and ask for wage and income transcripts or go online to irs.gov
Disclaimer: Tax Alliance Group offer this service to internet users. Although the information on this site is about IRS and State Taxation issues this is for informational use only, it's not legal advice.