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The last thing we can do for Denver tax client who is unable to set up a payment plan with the IRS and unable to qualify for an offer in compromise, is to make them uncollectible.

In some ways, having an uncollectible status with the IRS is good because you don't have to pay them any money and they are not trying to collect from you. The bad thing about having an uncollectible status with the IRS is that they've probably already filed a lien on you, you don't know when the next time the IRS will decide if you're still uncollectible, and becoming uncollectible with the IRS is a decision that must come from them, not us here at Bloch Rothman in Denver, Colorado.

Once a Denver taxpayer is labeled as uncollectible, ACS or the collection branch of the IRS, will check things out to determine whether the particular Denver taxpayer is now collectible. Once that has happened, the taxpayer now needs to enter into an installment agreement wiht the IRS or into an offer in compromise to protect him or herself from collection action.

Generally, being uncollectible is a temporary condition. The exception to this is a Denver tax client who has filed all their tax returns, and is able to stay uncollectible during the 10 years for the statute of limitations for the IRS to collect taxes.

Bloch, Rothman and Associates Ltd., your Denver accountant, has helped Denver taxpayers with IRS collection problems for over two decades and we can help you too! Please give us a call for a free Denver tax consultation. (303) 321.7160

This story was told to me by the person who taught my specialty in tax controversy certificate course. He later went on to write the manual for the IRS on how to audit people. He joined the IRS in the 1960s and one of his first jobs was to be part of a sting operation.

If I remember correctly, this took place in the 1960s when the IRS was much different. He told us that he was stationed outside a theater that was showing a championship boxing match on the screen. Sunny Liston may have been one of the fighters. The other fighter was from another country and he had vowed not pay taxes to the Internal Revenue Service. The Internal Revenue Service was not happy with this decision. As soon as the fight began, the Internal Revenue Service took over all the box offices at the theaters and took their share of the revenue first. This took place in multiple places throughout America wherever this boxing match was being shown.

I don't know if the IRS would do that today, but they would secure their stake some other way.

If you're currently dealing with the IRS now, and are ready to fix it, please give us a call for a free Denver tax consultation. At Bloch Rothman & Associates in Denver, Colorado, we are skilled Denver accountants, handling everything from Denver tax preperation to IRS audit assistance. 

Call today: (30) 321.7160

Also known as how to settle with the IRS for pennies on the dollar, The Internal Revenue Service’s Offer in Compromise Program is for taxpayers who have no chance of ever repaying their debt. This sounds like it's a great thing for the taxpayer, and it is. It is an even better deal for the Internal Revenue Service and that's why it is offered.
 
The reason why an offer in compromise is such a great deal for the IRS is that it gets people back into the system, and allows them get current. This is exactly what the IRS wants. When a person owes a considerable amount of money to the IRS with no way to pay it back, he/she is generally someone who has been out of the system for a long time and they owe back taxes for many, many years.
 
The offer in compromise is a program designed for taxpayers who owe tens of thousands of dollars or more to the IRS, and who have little ability to pay these taxes. The process for the offer in compromise takes a minimum of six months and generally takes closer to a year to accomplish. There is an application fee of $150 and the taxpayer must either make monthly payments during the application process, or pay 20% of the amount offer up front.
 
The reason why I think it takes so long to get this process completed is because the IRS intentionally understaffes this department. Even though it is a great program for the IRS to get people in the system, I don't think they always think so, and that is why the staffing levels are so low.
 
Bloch, Rothman and Associates Ltd. in Denver offers experienced Denver tax preparation and has been helping people successfully complete offers in compromise for the last 20 years. We can help you too. Please call us for a free Denver tax consultation today.

There are many reasons why people owe money to the IRS. The main theme in all of them seems to be a change in one's life. That may be going from boyhood to adulthood, a death, a disability, a serious illness, or debt. How you got into it doesn't matter, what does matter is that our experienced Denver tax professionals at Bloch Rothman and Associates can help you get out of it.

We have helped many Denver area residents before you, and we will continue to help people in the future with IRS debt. Over the next series of blogs, I will be talking about the four strategies to help people with IRS collection problems. They are payment plans under $50,000 owed, payment plans over $50,000 owed, offer in compromises, and uncollectible status.

If you are behind with the IRS, do not hestitate to call Bloch Rothman and Associates today - we are professional Denver accountants who are here to help you.

Today I went to the Colorado Department of Revenue to help a client who has received letters stating that they owe money to the state for the past 3 years. I went down there because I thought it would give me some understanding and closure regarding the case. There seemed to be many other invididuals equally confused at the Colorado Department of Revenue.
 
In regards to my client’s case, the state of Colorado claimed that my client only made 3 of the 4 required payments to the state and penalized them for nonpayment, even though my client and I sent the state a copy of their missing payment about a year ago. As it turns out, the state applied my client's estimated payment to 2009, instead of where it belonged in 2010.  The state should have realized this, as the final payment was an odd amount of money identical to the other 3 payments they had accepted for 2010, and was submitted on time. Instead, the state of Colorado sent my client a check back because they did not owe money for 2009, and my client cashed it without letting me know.
 
My trip to the Colorado Department of Revenue was successful because I explained to my client exactly what had happened and what we needed to do to fix it. Many Denver taxpayers receive a letter from the IRS or other taxing authority (the IRS sends out millions every year) and have no idea what it says, except that they owe money. Many of these people pay the money because they don’t know what else to do. 
 
One of the Denver accounting services that Bloch, Rothman and Associates, Ltd. provides to clients is the correct handling of this type of IRS or tax authority correspondence.  Our Denver accountants have been handling these types of letters for decades and can figure out exactly what they mean and what has to be done to lower or eliminate your bill with them.  The IRS reports that about 30% – 40% of these initial letters are wrong, yet many people pay them, simply to keep the authorities away from them.
 
If you receive one of these letters from the IRS or other tax authority, our Denver accountants at Bloch, Rothman and Associates, Ltd. can help you interpet it. Please call us for a free consultation; we will let you know what the letter is about, along with the best and cheapest way to handle it.