In this episode of Tax Problems Explained, Host Leann lyon sits down with Lawrence T. Ullmann, an experienced attorney, CPA, and former IRS agent, to demystify the IRS's tax collection timelines. Lawrence delves into the general rule of a 10-year collection period, explaining what triggers this timeline and how late filings or IRS-prepared substitute returns can alter it. He further explores the complexities of events that can pause or extend the IRS's ability to collect, such as offers in compromise, bankruptcy filings, and collection due process hearings. Lawrence also shares practical examples and insights into how installment agreements affect collection periods, emphasizing the importance of strategic planning and professional guidance. This episode equips listeners with essential knowledge to navigate IRS collection processes effectively, helping them make informed decisions about their tax liabilities.

Key Timestamps:

00:01 – Introduction

00:34 – IRS Collection Timeline Basics

01:22 – What Starts the Collection Clock

02:08 – Differences in Liability Situations

03:08 – Impact of IRS Audits on Timelines

04:00 – IRS Substitute for Return Process

05:01 – Events That Pause IRS Collection

06:13 – Exceptions to the 10-Year Rule

06:36 – Payment Plans and Collection Periods

07:56 – Strategy for Expiring Statutes

08:54 – Case Example: Extended Collection Timeline

10:06 – Misunderstandings About IRS Timelines

11:01 – Strategic Planning for Tax Liability

About the Show:

Tax Problems Explained offers listeners a comprehensive look into the intricacies of the tax system from the perspectives of an attorney, a CPA, and a former IRS agent. Designed for individuals and businesses alike, the show covers a wide range of tax-related topics, providing clarity and actionable insights. With a focus on demystifying complex tax issues, the series aims to empower listeners with the knowledge needed to navigate their tax challenges effectively and confidently.

In this episode of Tax Problems Explained, Lawrence T. Ullmann, a seasoned tax professional with a background as a former IRS agent and private practice expert. They delve into the complexities and consequences of failing to file tax returns for multiple years. Lawrence explains common reasons why individuals fall behind, such as life-changing events, and outlines the IRS's response to non-compliance, including the Substitute for Return program. The discussion highlights the risks of accruing penalties, potential criminal charges, and the challenges of reconstructing financial records. Lawrence also provides guidance on how far back individuals need to file to regain compliance and emphasizes the importance of consulting a tax attorney. This episode is essential for anyone facing unfiled tax issues, offering practical advice to navigate the IRS system effectively.

Key Timestamps:

00:01 – Introduction

00:35 – Common Reasons for Unfiled Returns

02:04 – IRS Perspective on Non-Compliance

03:27 – IRS Substitute for Return Program

04:49 – Risks of Unfiled Returns

06:15 – Quarterly Taxes and Penalties

07:30 – Filing Past Returns: How Far Back?

09:31 – Importance of Consulting a Tax Attorney

10:01 – Process of Filing Past Returns

11:44 – Challenges in Reconstructing Records

12:50 – When to Involve a Tax Attorney

13:56 – Legal Protections and IRS Rules

About the Show:

Tax Problems Explained is a podcast designed for individuals and businesses seeking clarity on complex tax issues. Hosted by experienced professionals, the show provides insights into the workings of the IRS, offering practical advice on resolving tax problems. Each episode breaks down intricate tax topics with a focus on compliance, legal considerations, and strategic planning. Whether you're dealing with unfiled returns, audits, or other tax-related challenges, Tax Problems Explained equips listeners with the knowledge to navigate the tax system confidently.

Key Timestamps: 00:00 – Introduction to the episode on IRS appeals 00:44 – Purpose of the IRS Appeals Office 02:03 – How appeals differ from the examination/audit division 03:10 – When a taxpayer can request an appeal after an audit 04:00 – Factors the appeals office considers 04:50 – Hazards of litigation and how it affects settlements 06:30 – General example of a case moving from audit to appeals 09:10 – When filing an appeal may not be the best strategy 10:30 – How formal the appeals process is and what to expect 11:50 – What makes an appeal more likely to resolve efficiently 12:30 – Closing remarks and contact information

About the Show: *Tax Problems Explained* offers valuable insights into navigating tax issues from the perspectives of an attorney, a CPA, and a former IRS agent, providing expertise in understanding and resolving complex tax problems efficiently.

Key Timestamps: 00:00 – Introduction to the episode on IRS audits 00:50 – What is an IRS audit and why does the IRS conduct them? 02:00 – How the IRS actually selects returns for audit (not random) 02:40 – DIF scores and computer algorithms explained 04:00 – Other ways returns get selected (e.g., from vendor audits) 04:50 – Common patterns and discrepancies that trigger audits 05:50 – How income levels affect audit likelihood 06:40 – Claiming legitimate deductions and avoiding unnecessary fear 08:40 – Impact of filing late, amended returns, or cash-based businesses 10:00 – Role of automated systems and human judgment in audits 11:50 – Real-world audit example (vacation home case) 14:10 – First steps if you receive an audit notice 16:05 – Closing remarks and contact information

About the Show: *Tax Problems Explained* provides expert insights on navigating complex tax issues, offering practical advice and strategies to individuals and businesses facing IRS challenges. Gain valuable knowledge and solutions from professionals in the field.

In this episode of *Tax Problems Explained*, Lawrence Ullmann sheds light on the significance of IRS notices, the varying levels of urgency they carry, and how individuals should respond to them. From deciphering the purpose of IRS communications to navigating complex tax issues, Lawrence offers invaluable insights to help listeners tackle tax challenges effectively.

Key Timestamps:

00:00 – Introduction

01:25 – Purpose of IRS Notices

03:10 – Identifying Urgent Notices

05:45 – Approaching Proposed Return Changes

07:30 – Handling IRS Calculations

09:15 – Consequences of Ignoring Notices

11:40 – Escalation of Unresolved Notices

14:20 – Self-Resolution vs. Involving a Tax Attorney

About the Show:

*Tax Problems Explained* delves into the intricate world of tax issues from the combined perspectives of an attorney, a CPA, and a former IRS agent. With Lawrence Ullmann's extensive experience and insights, the show aims to equip individuals and businesses with the knowledge needed to navigate the complexities of the tax system effectively.

Key Timestamps: 00:00 – Introduction 00:45 – Transition from Chemistry to Accounting 02:30 – Lessons from working inside the IRS 04:15 – Distinction between a revenue agent and appeals officer 06:10 – Balancing work and advanced studies 08:20 – Impact of broader financial background on tax evaluations 10:05 – Transition to private practice 12:30 – Misconceptions about the IRS 14:45 – Wrapping up insights on IRS evaluation

About the Show: *Tax Problems Explained* provides valuable insights from Lawrence Ullmann, blending his experience as an attorney, CPA, and former IRS agent to help individuals and businesses navigate tax challenges effectively.