Berkshire Tax Resolution would like you to know that there are several ways to handle Backtaxes owed to the IRS. Berkshire Tax Resolution urges you not to fall into the trap of deciding to pursue the IRS without professional representation; the IRS is highly trained to obtain as much information from you as possible for the sole purpose of collections. Many taxpayers attempt to contact the IRS to simply negotiate a payment plan, which proves difficult. When you begin speaking to the IRS agents, they will start asking you probing questions regarding your income, place of employment, financial institution information, types of vehicles you own, the amount of your rent/mortgage payments, etc. Berkshire Tax Resolution would like to point out that this information is extremely beneficial to the IRS because it helps determine how to quickly levy, seize or place liens on your various assets. For example, the IRS agent may wish to have you commit to a payment that you are unable to afford.   

The IRS manual clearly states that if a taxpayer agrees to a higher amount that he/she is required to pay under the National Standards, the IRS is not required to inform the taxpayer of their rights or any alternative programs that might be beneficial to them. Berkshire Tax Resolution understands that this may sound unbelievable; however, it is true. The National Standards were put into effect by congress in 1998 to protect taxpayers from the heavy hands of the IRS, clarifies Berkshire Tax Resolution. The rules and regulations state that a taxpayer who enters into a payment plan with the IRS is allotted a certain allowance for food, clothing, housing, transportation and medical expenses. Berkshire Tax Resolution would like to shed light on the fact that this is a very complicated issue and involves a mathematical formula that was enacted by congress in order to determine how much the taxpayer pays.
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Being declared non-collectible is a procedure that is being used more and more against the IRS. Berkshire Tax Resolution has been using this method for many years, especially in this economy. To determine if an individual is considered non-collectible, once again this refers back to the National Standards, explains Berkshire Tax Resolution. If the taxpayer has no disposable income, Berkshire Tax Resolution explains that the IRS must declare that individual as non-collectible, which means the IRS will stop any further collections from the taxpayer for approximately 1-2 years. Berkshire Tax Resolution would like you to know that the IRS will review the taxpayer’s tax returns to determine if the income has increased. After that 1-2 year span, if the income of the taxpayer has increased, the IRS will then review the case to determine if they are able to begin collections once again, clarifies Berkshire Tax Resolution. Being declared non-collectible allows taxpayers the ability to get back on their feet.

Berkshire Tax Resolution defines a Payment Plan as an agreed settlement between the taxpayer and the IRS. The amount paid to the IRS by the taxpayer in the terms of the payment plan is greatly affected by the National standards, which determines what amount the taxpayer's allowances for food, housing, clothing, medical & transportation expenses. Berkshire Tax Resolution goes on to explain that this also involves a complicated mathematical formula that has to be calculated. In most cases, the national standards do not have to be used for the first year. The actual expense of the taxpayer can be used and then they allow the taxpayer one year to come into compliance with the national standards. Berkshire Tax Resolution reminds readers that this is not something that the IRS will inform you of or assist you with. This is the reason why it is essential that you obtain professional assistance with this matter.  

Requesting an Abatement of Penalties is a method used to reduce the amount of monies owed to the IRS. In most cases, 30-40% of the taxes owed to the IRS consist of penalties along with the compounded interest of the penalties, explains Berkshire Tax Resolution. To have this eliminated or greatly reduced gives the taxpayer the ability to negotiate a much better settlement with the IRS.
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Berkshire Tax Resolution would like you to be aware of the fact that there are two main forms of appealing IRS collections: a CDP appeal and a CAP appeal. A CDP appeal must be filed within 30 days of a final notice of intent to levy. Berkshire Tax Resolution explains that this allows a senior technical advisor within the IRS to review the case. This means it is being taken from the collection division of the IRS who are far more aggressive concerning these matters. In most instances, you will receive much better results filing a CDP appeal. If perhaps you have failed to file in a timely manner, you always have the right to file a CAP appeal, which is very rarely used in the IRS. Most IRS agents do not know what a CAP appeal actually is. Berkshire Tax Resolution’s company utilizes this tactic against the IRS a great deal. If the IRS has not actually filed a wage garnishment or levy against the taxpayer, Berkshire Tax Resolution immediately files a CAP appeal. This takes the case out of the hands of the collection division immediately and puts it into a technical advisor's hands. This is very important, because a technical advisor is somebody who has been with the IRS for multiple years and will approach things in a more professional manner and truly follow the guidelines required. A CAP appeal also puts the brakes on an agent filing wage garnishments and levies against an individual’s social security income and payroll monies that are unable to provide for themselves. The crucial part of filing any of these appeals is that the taxpayer must be in full compliance with the IRS, meaning all tax returns are filed. Any tax returns that are not filed must be filed.