Deininger & Wingfield, P.A. – Little Rock Arkansas law firm IRS and Arkansas state tax help compliance problems litigation

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	Appeals Process used when there is a disagreement between the taxpayer and either the IRS or the Arkansas DF&A with an action taken in the collection or assessment process. Certificate of Indebtedness A judgment filed by the State of Arkansas with the Circuit Clerk in the county where a taxpayer resides for unpaid tax liabilities, which attaches to all property of the taxpayer in that county. Collection Financial Statement for Wage Earners and Self-Employed Individuals (IRS Form 433-A) A financial statement required by the Internal Revenue Service to determine an individual taxpayer’s monthly income and expenses to arrive at a monthly payment amount under an Installment Agreement or acceptable amount of an Offer in Compromise. Collection Information Statement For Businesses (IRS Form 433-B) A financial statement required by the Internal Revenue Service to determine a business taxpayer’s monthly income and expenses in order to arrive at a monthly payment amount under an Installment Agreement or an acceptable amount of an Offer in Compromise. Collection Statute Expiration Date (CSED) The date after which a taxing authority can no longer pursue collection of an unpaid tax liability and/or federal tax lien. Injured Spouse (IRS Form 8379) An administrative method for granting to a spouse who does not have a federal tax liability, his or her share of a joint refund; usually arises when one spouse has an obligation for child support, student loan payments, or separate federal tax obligations. Innocent Spouse (IRS Form 8857) Relief granted by the IRS to the spouse when he or she is not responsible for any part of the tax liability on a joint income tax return; typically arises when an IRS examination has taken place and a deficiency has been assessed. This may be raised as an affirmative defense when contesting a deficiency in Tax Court, and must be raised within a limited time after collection action begins. Installment Agreement (IRS Form 9465) Monthly payment agreement with the Internal Revenue Service for payment of unpaid tax liabilities; the amount is determined by completing a financial statement (IRS Form 433-A for individuals and 433-B for businesses) and submitting proof of income and expenses. This legally stops the levy process. Lien (Notice of Federal Tax Lien) A publicly filed document that the IRS uses to collect unpaid taxes; it is filed in the county where the taxpayer resides and attaches to all property, which has the practical effect of tying up real estate and forcing the taxpayer to deal with the tax lien before the property can be refinanced, sold, or inherited. Levy The primary tool the IRS and DF&A uses to collect unpaid taxes; an action forcing the seizure of the taxpayer’s assets, i.e., the bank remit all or a portion of the funds available in the taxpayer’s accounts, or an employer to remit a portion of the taxpayer’s wages. Offer in Compromise (IRS Form 656) Agreement by the Internal Revenue Service to receive a compromised amount to settle outstanding tax liabilities when there is a doubt as to the existence or amount of a tax liability; when there is a doubt as to whether the total amount due can be collected; or when there is no doubt as to liability or collectibility, but a compromise would promote effective tax administration because collection would create an economic hardship, compelling public policy exists, is justified by equity considerations. Penalty Abatement or Non-Assertion Request A request to reduce or eliminate penalties and related interest on tax liabilities. Power of Attorney (IRS Form 2848) Authorization given by the taxpayer to the attorneys, CPAs, and professionals to represent the taxpayer before the Internal Revenue Service and to allow disclosure by the IRS of the taxpayer’s personal tax information to the attorneys, CPAs, and professionals representing the taxpayer. Refund Claims Claim filed by the taxpayer to obtain a refund or credit for taxes paid; typical forms used are 1040X, 1120X, 1310, 843, 720X or 8849. State Tax Liabilities Any assessment made against a taxpayer by a state taxing authority. Statute of Limitations for Collection The time period for which an assessment of a tax liability is collectible; typically ten (10) years after assessment. Substitute for Return A document filed by a taxing authority when a taxpayer has failed to file a tax return and the taxing authority shows that the taxpayer received income during the period covered by the return. Note: A substitute for return will not qualify for a “filed return” under Bankruptcy Code §507(a)(8)(A)(i). Tax Audits A review of a filed return by a taxing authority, as simple as a matching or computer generated adjustment to a full-blown field audit review, which generally results in an additional assessment of tax being made. Tax Bankruptcy A bankruptcy where all or a large part of the liabilities to be discharged are taxes. Tax Litigation A complaint filed in a court of law for the purpose of settling a dispute over tax liabilities. Tax Planning A plan arrived at by a taxpayer prior to incurring tax liability which takes advantage of federal and state tax laws to minimize tax liabilities that will be incurred by the taxpayer. Writ of Execution A document issued under state law which authorizes the state to seize personal property of a taxpayer to be applied to the taxpayer’s outstanding state tax liabilities. Appeals Process used when there is a disagreement between the taxpayer and either the IRS or the Arkansas DF&A with an action taken in the collection or assessment process. Certificate of Indebtedness A judgment filed by the State of Arkansas with the Circuit Clerk in the county where a taxpayer resides for unpaid tax liabilities, which attaches to all property of the taxpayer in that county. Collection Financial Statement for Wage Earners and Self-Employed Individuals (IRS Form 433-A) A financial statement required by the Internal Revenue Service to determine an individual taxpayer’s monthly income and expenses to arrive at a monthly payment amount under an Installment Agreement or acceptable amount of an Offer in Compromise. Collection Information Statement For Businesses (IRS Form 433-B) A financial statement required by the Internal Revenue Service to determine a business taxpayer’s monthly income and expenses in order to arrive at a monthly payment amount under an Installment Agreement or an acceptable amount of an Offer in Compromise. Collection Statute Expiration Date (CSED) The date after which a taxing authority can no longer pursue collection of an unpaid tax liability and/or federal tax lien. Injured Spouse (IRS Form 8379) An administrative method for granting to a spouse who does not have a federal tax liability, his or her share of a joint refund; usually arises when one spouse has an obligation for child support, student loan payments, or separate federal tax obligations. Innocent Spouse (IRS Form 8857) Relief granted by the IRS to the spouse when he or she is not responsible for any part of the tax liability on a joint income tax return; typically arises when an IRS examination has taken place and a deficiency has been assessed. This may be raised as an affirmative defense when contesting a deficiency in Tax Court, and must be raised within a limited time after collection action begins. Installment Agreement (IRS Form 9465) Monthly payment agreement with the Internal Revenue Service for payment of unpaid tax liabilities; the amount is determined by completing a financial statement (IRS Form 433-A for individuals and 433-B for businesses) and submitting proof of income and expenses. This legally stops the levy process. Lien (Notice of Federal Tax Lien) A publicly filed document that the IRS uses to collect unpaid taxes; it is filed in the county where the taxpayer resides and attaches to all property, which has the practical effect of tying up real estate and forcing the taxpayer to deal with the tax lien before the property can be refinanced, sold, or inherited. Levy The primary tool the IRS and DF&A uses to collect unpaid taxes; an action forcing the seizure of the taxpayer’s assets, i.e., the bank remit all or a portion of the funds available in the taxpayer’s accounts, or an employer to remit a portion of the taxpayer’s wages. Offer in Compromise (IRS Form 656) Agreement by the Internal Revenue Service to receive a compromised amount to settle outstanding tax liabilities when there is a doubt as to the existence or amount of a tax liability; when there is a doubt as to whether the total amount due can be collected; or when there is no doubt as to liability or collectibility, but a compromise would promote effective tax administration because collection would create an economic hardship, compelling public policy exists, is justified by equity considerations. Penalty Abatement or Non-Assertion Request A request to reduce or eliminate penalties and related interest on tax liabilities. Power of Attorney (IRS Form 2848) Authorization given by the taxpayer to the attorneys, CPAs, and professionals to represent the taxpayer before the Internal Revenue Service and to allow disclosure by the IRS of the taxpayer’s personal tax information to the attorneys, CPAs, and professionals representing the taxpayer. Refund Claims Claim filed by the taxpayer to obtain a refund or credit for taxes paid; typical forms used are 1040X, 1120X, 1310, 843, 720X or 8849. State Tax Liabilities Any assessment made against a taxpayer by a state taxing authority. Statute of Limitations for Collection The time period for which an assessment of a tax liability is collectible; typically ten (10) years after assessment. Substitute for Return A document filed by a taxing authority when a taxpayer has failed to file a tax return and the taxing authority shows that the taxpayer received income during the period covered by the return. Note: A substitute for return will not qualify for a “filed return” under Bankruptcy Code §507(a)(8)(A)(i). Tax Audits A review of a filed return by a taxing authority, as simple as a matching or computer generated adjustment to a full-blown field audit review, which generally results in an additional assessment of tax being made. Tax Bankruptcy A bankruptcy where all or a large part of the liabilities to be discharged are taxes. Tax Litigation A complaint filed in a court of law for the purpose of settling a dispute over tax liabilities. Tax Planning A plan arrived at by a taxpayer prior to incurring tax liability which takes advantage of federal and state tax laws to minimize tax liabilities that will be incurred by the taxpayer. Writ of Execution A document issued under state law which authorizes the state to seize personal property of a taxpayer to be applied to the taxpayer’s outstanding state tax liabilities.