Accounting News and Notes

Atlanta CPA on Helping Atlanta Business Owners With Their IRS Representation Issues and Offer in Compromise 

One of the most difficult parts of the IRS Representation process is ensuring that all parties involved are openly and frequently communicating to ensure that no enforced collections efforts such as a garnishment or levy occurs when an Offer in Compromise is being considered or a Form Installment Agreement signed and agreed to. Below is a sample letter one might send to affect and encourage open consistent communication while requesting that no enforced collection efforts be implemented:

 Internal Revenue Service

Atlanta GA 39901 

I am writing regarding the above referenced taxpayers and their open liabilities due. 

Since January 15, 2010 I have been forwarding correspondence approximately every thirty days to assist the taxpayers to voluntarily set up a formal Installment Plan. I have enclosed copies of only the original letters for your review. On this date a Formal Application was completed and forwarded to process the Installment Agreement. Although taxpayers were not able to get confirmation and acceptance of their Installment Agreement Request, they have voluntarily been paying $400 per month against their outstanding balance. I have attached a recap of the checks that the client has been paying. 

On January 10, 2010 a formal garnishment was filed against the taxpayers, which will preclude their ability to meet their ongoing financial obligations. As the taxpayers have for months been diligently been working to get on a formal Installment Agreement and have voluntarily paying as they were, a garnishment appears to be against the best interests of all parties involved.  

Please review and advise ASAP as the continued garnishment in this situation will cause undue financial hardship, especially while considering the taxpayer was already making voluntary monthly payments. 

Sincerely, John C. Dillard, CPA, PC, Partner in Charge

Contact HIS CPA PC (A Christian CPA Firm) today.

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html  There you will also discover a wide host of resources for Atlanta Entrepreneurs.

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!    

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.

Award Winning Roswell, Alpharetta area CPA Provides Sample Installment Agreement Request to Georgia

Georgia, like the IRS, allows both corporate and personal/individual taxpayers, who cannot pay their taxes in full, to set up an installment agreement to pay the taxes over time. Though this is a good plan for many, it is often the most expensive as during the time period, when the payments are being made, both penalties and interest continue to accrue adding even more monies to be due and payable that would otherwise be due.

Often paying the taxes and interest in full while asking for penalty abatement or an Offer in Compromise are frequently good options to consider and evaluate when dealing with Tax Representation Issues and Tax Advocacy. Frequently these options are the best when dealing with a wage garnishment, levy, lien, back taxes or the filing of old past due tax returns. Cover Letters should tell a story leading to the taxing authorities leaning toward agreeing with the particular position you have claimed. If there are any substantive other tax for financial issues that would be important it would be prudent to cover them in the Cover Letter. If you were to submit an individual request to Georgia, for example, here is a Sample Installment Agreement Cover Letter you might use.

Georgia Department of Revenue

Installment Payment Unit

1800 Century Blvd., Ste. 18225

Atlanta, GA 30345 

Enclosures: Power of Attorney and GA Form 9465: Installment Payment Plan Application and IRS letter regarding their Federal Offer in Compromise

Dear Sir or Madam

I am following up on the taxpayers open monies due the state of Georgia and to set up an Installment Agreement thereon. I have also enclosed for your review a copy of the last piece of correspondence regarding their IRS Offer in Compromise. As you can see from the correspondence the taxpayer has no substantive assets, cash flow or funds of any type. This is the most they are able to commit to at this time. Accordingly, please cease all collection efforts while this Installment Agreement is being processed.

I have enclosed GA Form 9465: Installment Payment Plan Application for the above referenced taxpayer listing the most that they would be able to commit to on an monthly basis. The taxpayers are desirous to settling all of their tax debts and this will be a positive step in that direction.

Please accept this Installment Plan as submitted.

Please do not hesitate to contact me if you have any questions or need any additional information.

Sincerely,

John C. Dillard, CPA, PC

Partner in Charge

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ 

Helping Clients with Corporate & Personal Income Taxes, Incorporation Advice, Tax Planning, Virtual CFO, Financing, Business Plans, Back Taxes, Offer in Compromise, Tax Advocacy, Business Acquisitions & Sales, Business Plans, and IRS Representation.

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond