Previous Posts
   

 
TIGTA Audit Reveals A Few of the Deficiencies in IRS Procedures

  Sponsor
   


 
Blog Archives
   
 

 
Tax Blogs
 

A Taxing Matter
Colorado Estate Planning Attorney
Don't Mess With Taxes
Taxable Talk
Tax Prof Blog
Tax Update
Mauled Again
Talking Taxes


  Our Services
    Tax Advice & Tax Opinions
    Current Tax Returns
    False or Fraudulent Tax Returns
    Unfiled Tax Returns
    State and IRS Tax Audits
    IRS Collections & Negotiations
    Payroll & Employment Tax
    Tax Preparer or CPA Malpractice
 
Common IRS Tax Remedies
    Tax Payment Agreements
    IRS Offer in Compromise
    Abatement of Tax Penalty/Interest
    Innocent Spouse Tax Relief
    IRS Tax Collection Rights
    Bankruptcy Tax
    IRS Private Letter Rulings
    IRS Information or FOIA Request
    IRS Tax Litigation
  Frequently Asked Questions
    Cost & Size of Your Tax Case
    Attorney Disclosure of Client Information
  How to choose a tax attorney
  Why you should hire a tax attorney
 
IRS Abuse & the Ten Deadly Sins
  Contact Us
 
Contact A Tax Lawyer Today!
 
Financial Blogs
 

Mechanics of Money - Bankruptcy
Mechanics of Money - Estate Plan
Mechanics of Money - Finance
Mechanics of Money - Glossary
Mechanics of Money - Insurance
Mechanics of Money - Investments
Mechanics of Money - Retirement
Mechanics of Money - Tax
Clarity Wealth Matters


 
Other Blogs
 

Legal Marketing Blog

 
Advertising
 
 
 
 
 
 
 
 
 
 
 
     

New! Enter your email address to
subscribe to Everything Tax Law!

Do-It-Yourself Will & Estate Planning
RSS/Atom Feed
Bookmark US
Buy Legal Forms

 

TIGTA Audit Reveals A Few of the Deficiencies in IRS Procedures

In the Revenue Restructuring Act of 1998, Congress provided that taxpayers were to be provided a hearing before the IRS filed a lien or levy on taxpayer property. If filed timely, this involves a collection due process (CDP) hearing; if not filed timely, this involves an equivalency hearing. Typically both hearings are held before the IRS Office of Appeals. After seven years, the IRS Office of Appeals has not yet been able to produce a workable system for processing or managing the collection due process and equivalency hearings.

Earlier this month the Treasury Inspector General for Tax Administration (TIGTA) released its annual audit (available here) of the IRS collection due process and equivalency hearing procedures. This audit, which the Office of Appeals agreed with, revealed that:

  • Files could not be located,
  • Files did not contain enough documentation,
  • Files did not document the Appeals prior involvement in the case,
  • Determination letters did not contain explanations of decisions,
  • Determination letters did not communicate results of hearings to taxpayers, and
  • Files did not contain documentation showing that the CDP request was timely.
TIGTA made a number of recommendations in the audit report, all of which are steps in the right direction. However, the audit report missed one major issue: how cases get to the IRS Appeals Office. The audit report should have recommended that taxpayers submit all CDP requests to one Office or to the IRS Service Center that serves the particular taxpayer (i.e., where the taxpayer mails his or her tax returns). As things currently stand, taxpayers are to submit CDP requests to the IRS Officer that they are working with. There are a number of problems with this arrangement.

First, the taxpayer may be working with more than one office. For example, the taxpayer may be actively working with the local field office and the automated collection system office. Second, many IRS employees do not know that they should forward the CDP request to the IRS Office of Appeals and others do not even know what a CDP hearing is. I still run into situations where I have to specifically ask that the CDP request be forwarded to the Appeals Office. Recently I even had one IRS Officer tell me that he does and would not forward the request, that the CDP hearing request has nothing to do with his office, and that he was not sure what it was. In that case I had to forward the CDP hearing request to the appropriate Appeals Office myself. I knew to do this, but I would guess that many taxpayers do not.

Second, recipients of CDP requests often do not understand how to or fail to enter the appropriate code into the IRS computer system to reflect that the CDP request was received. This has the effect of keeping the case in collections status, which can result in the IRS illegally pursuing collections activities (such as levying on taxpayers assets).

Third, some IRS offices/employees are just too busy (or slow) to be able to process CDP hearing requests in a timely manner. Again, this can result in the IRS illegally levying on taxpayers assets long after the CDP hearing request was submitted.

A great number of CDP hearing requests get lost in this process. This highlights another procedural flaw: a flaw in TIGTAs annual audit process. Cases that are lost before they are processed would not even be included in the audit. The audit revealed that the cases that were processed were poorly handled, so just imagine how many requests did not even make it to the point of being processed....

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home

 
www.irstaxtrouble.com
© 2007 - All Rights Reserved _
 

Colorado: Arvada Aspen Aurora Avon Bayfield Basalt Berthoud Black Hawk Boulder Breckenridge Brighton Broomfield Brush Burlington Castle Rock Cedaredge Centennial Cherry Hills Village Colorado Springs Commerce City Cortez Craig Creede Cripple Creek Delta Denver Dillon Durango Eagle Eaton Edgewater Englewood Erie Estes Park Evans Federal Heights Firestone Frederick Fort Collins Fort Lupton Fort Morgan Fountain Frisco Fruita Georgetown Glendale Glenwood Springs Golden Grand Junction Greeley Greenwood Village Gunnison Gypsum Idaho Springs Ignacio Johnstown La Junta Lafayette Lakewood Lamar Larkspur Limon Littleton Lone Tree Longmont Louisville Loveland Lyons Minturn Montrose Monument Morrison Nederland New Castle Northglenn Olathe Pagosa Springs Palmer Lake Parker Pueblo Rifle Sheridan Silt Silverthorne Silverton Town of Snowmass Village South Fork Steamboat Springs Sterling Stratton Superior Telluride Timnath Thornton Trinidad Vail Westminster Wheat Ridge Windsor Winter Park Woodland Park

Texas: Abbott Abilene Addison Alamo Alamo Heights Albany Alice Allen Alpine Alvarado Alvin Amarillo Ames Anahuac Anderson Mill Andrews Angleton Antuckett Appleby Aransas Pass Archer City Argyle Arlington Athens Atlanta AustinAustonio Austwell Avery Azle Bailey's Prairie Baird Balch Springs Ballinger Barrett Bartonville Bastrop Bay City Baytown Beach City Beaumont Bedford Bee Cave Beeville Bellaire Bellmead Bellville Belton Benbrook Big Lake Big Sandy Big Spring Blue Ridge Boerne Bogata Bolivar Peninsula Bonham Booker Borger Brazos Bend Brazoria Brazos Country Breckenridge Bremond Brenham Bridge City Bridgeport Brookshire Brookside Village rownsville Brownwood Bruceville-Eddy Bryan Buda Buffalo Bulverde Burkburnett Burleson Burnet Caldwell Calvert Camden Cameron Camp Wood Canadian Canton Canyon Carrollton Carthage Castroville Cedar Hill Cedar Park Centerville Chappell Hill Chester Chillicothe Christoval Cibolo Cisco Cistern Clear Lake Cleburne Cleveland Clifton Clute Clyde Cockrell Hill Coldspring College Station Colleyville Columbus Comanche Combine Comfort Commerce Conroe Converse Coolidge Coppell Copperas Cove Copper Canyon Corinth Corpus Christi Corral City Corrigan Corsicana Cove Crane Cresson Crockett Crosby Cross Plains Crowell Crowley Crystal Beach Cuero Cumings Cuney Cut and Shoot Daingerfield Daisetta Dalhart Dallas Danbury Dayton Dayton Lakes De Leon Decatur DeCordova Deer Park Dell City Del Rio Denison Denton Denver City DeSoto Detroit Devers Diboll Dickinson Dime Box Donna Dripping Springs Dublin Dumas Duncanville Eagle Pass Early Eastland Eden Edinburg El Campo El Paso Eldorado Electra Elgin Elysian Fields Emory Ennis Eola Euless Egypt Fairfield Farmers Branch Farmersville Farwell Flatonia Flower Mound Forney Fort Davis Fort Stockton Fort Worth Franklin Fredericksburg Freeport Friendswood Frisco Fritch Fulshear Gainesville Galveston Garden Ridge Garland Gatesville Georgetown Giddings Gilmer Glenn Heights Glen Rose Goliad Gonzales Gordon Graham Granbury Grand Prairie Grape Creek Grapeland Grapevine Groveton Gruene Gun Barrel City Hale Center Hallettsville Hallsville Haltom City Hamilton Hardin Harker Heights Harleton Harlingen Harriett Haskell Hearne Hemphill Hempstead Hewitt Hico Hidalgo Hideaway Highland Village Highlands Hill Country Village Hillsboro Hilshire Village Hondo Houston Humble Huntington Huntsville Hurst Hutto Idalou Impact Independence Indian Lake Industry Ingleside on the Bay Ingleside Ingram Iowa Park Iraan Iredell Irving Italy Itasca Jacksboro Jacksonville Jamaica Beach Jasper Jefferson Jewett Johnson City Junction Karnack Katy Keller Kemah Kenefick Kennedale Kerens Kerrville Kilgore Killeen Kingsville Kingwood Kirbyville Kosse Kountze Krugerville Krum Kurten Kyle La Marque La Porte Lacy-Lakeview LaGrange Lake Brownwood Lake Dallas Lake Jackson Lakeway Lampasas Lamesa Lancaster Laredo League City Leander Leon Valley Leonard Levelland Lewisville Lindale Littlefield Live Oak Livingston Lockhart Lolita Longview Lorenzo Los Fresnos Los Ybanez Lubbock Lucas Luckenbach Lueders Lufkin Lumberton Maban Malakoff Manchaca Mansfield Marble Falls Marlin Marshall Mason Mathis McAllen McGregor McKinney McLeod Menard Merkel Mesquite Mexia Midland Midlothian Midway Miles Millersview Millican Mineola Mission Missouri City Mobile City Monahans Mont Belvieu Moody Moore Station Morgan's Point Moulton Mount Pleasant Murphy Nacogdoches Nassau Bay Neiderwald Nesbitt New Boston New Braunfels Newton Neylandville North Cleveland North Richland Hills North Zulch Oak Leaf Oak Point Odessa Old River-Winfree Onalaska Orange Overton Paint Rock Palestine Pampa Pana Maria Pantego Paris Parker Pasadena Pearland Pecos Perryton Pflugerville Pharr Pineland Pittsburg Plainview Plano Plum Grove Ponder Port Aransas Port Arthur Port Lavaca Portland Post Post Oak Bend City Prairie Hill (Washinton County) Presidio Prosper Quanah Queen City Quinlan Quitaque Quitman Ranger Ravenna Red Oak Refugio Reno Richardson Richland Riesel Rising Star River Oaks Roanoke Robinson Rockwall Rosenberg Rosser Round Rock Round Top Rowena Rowlett Rusk Sachse Sadler Saginaw Salado San Angelo San Antonio San Benito San Marcos San Saba Sanctuary Sanderson Sanger Santa Anna Santa Fe Savoy Schertz Scottsville Scurry Seabrook Seagoville Sealy Seguin Seminole Seymour Shallowater Shamrock Shavano Park Shenandoah Sheldon Sherman Shiner Shoreacres Silsbee Slaton Smithville Snyder Somerville Sonora Sour Lake South Padre Island Southlake Southmayd Spearman Spring Valley Springtown Spur Stafford Stephenville Stowell Sugar Land Sunnyvale Sweeny Sweetwater Tahoka Taylor Teague Temple Tenaha Terrell Texarkana Texas City The Colony The Woodlands Tiki Island Timpson Tioga Toco Tom Bean Tomball Trophy Club Troup Turkey Tyler Uncertain Universal City University Park Utopia Van Alstyne Vanderbilt Van Horn Venus Vernon Victoria Vidor Volente Waco Waskom Watauga Waxahachie Weatherford Webberville Webster Weslaco West Columbia West Lake Hills West Orange West University Place Westlake Wheeler White Oak White Settlement Whitehouse Wichita Falls Willow Park Wimberley Windrest Winnie Winters Wixon Valley Wolfe City Woodlake Woodlawn Woodville Woodway Wortham Wylie Yoakum Zapata Zavalla

. . .