Colorado Springs: My Spouse Has Overdue Tax and/or Owes Back Child Support! What Are My Options?

 

You were expecting a big refund, but instead you get an IRS letter stating that your tax refund is being applied to an outstanding overdue financial debt owed by your spouse.   This debt can be overdue federal or state taxes, past due child support, or one of many reasons your federal and sometimes even your state refund can be kept by the tax agency.  Is the refund completely lost?  Is there any option for the spouse who does not owe the debt created before marriage?

Internal Revenue Code Section 6015 provides provides relief in these circumstances.  The spouse who does not owe the debt is considered an "injured spouse."   A Form 8379 can be filed either separately or with the tax return.  When correctly completed the IRS will calculate what the injured spouse will receive and send their portion of the refund either in a check or through direct deposit.

Marcelino Dodge, Enrolled Agent of Cash Tracks Financial has helped many injured spouses collect their refunds for over 20 years.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs Video: What is Reasonable Cause?

 

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs Video: What Can I Do Get My Penalty Abated on Appeal?

 

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: Important Question: What is Reasonable Cause?

In the Internal Revenue Manual it states that penalties can be abated for reasonable cause?  What is reasonable cause?  Sadly, what a taxpayer thinks is reasonable cause is not considered reasonable cause by the Internal Revenue Service.  Many times when requesting penalty abatement a taxpayer has to go to appeals.

Marcelino Dodge, Enrolled Agent, can help in the request for abatement of penalties.  Many times the penalty is just an honest mistake on the part of the taxpayer.  Other times a detailed explanation may be needed to explain the reasons why the taxpayer qualifies penalty abatement.  Other considerations are 1) Has the taxpayer had this issue before and 2) What is the taxpayer's history of compliance?

There are other factors that can also affect taxpayer's claim of reasonable cause for penalty abatement.  To have the best chance for penalty abatement, maintain a good history of compliance.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com    

Colorado Springs: What Can I Do Get My Penalty Abated on Appeal?

 

A few weeks ago you submitted your request for penalty abatement from the IRS.  After waiting with anticipation for a response, you finally receive a letter from from the IRS, but instead of the anticipated penalty abatement, you are told that you do not qualify for penalty abatement.  Can you you appeal this initial denial?  Yes, you can. What are some of the factors that  can help you to prepare and to win on appeal?

For a successful appeal you MUST have the following factors:

• Good books and records
• Have a good history of compliance
• Have all the information and show attempts to comply
• Hire a competent tax professional, such as an Enrolled Agent or CPA

Marcelino Dodge, Enrolled Agent is such a professional to help you get organized and to negotiate on your behalf with the IRS.  The Appeals Officer will not simply concede.  We will have to build a strong case and make their job easy to do.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs Video: How Do I Deal With the IRS Notices?

 

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs Video: My Request for Penalty Abatement was Denied, What Options Do I Have?

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: My Request for Penalty Abatement was Denied, What Options Do I Have?

 

When a request for abatement of penalties is submitted, many times you will get the response that your explanation does not meet the reasonable cause standard.  If you have received such a denial, do not despair.  There is normally a period of time (30 to 60 days) you have to appeal the initial decision.  This leaves the question: How can I win on appeal?

To start you need to hire competent tax professional such as Marcelino Dodge, EA to  represent.   With a proper review of your facts and circumstances, we can determine if you qualify for First Time Abatement or if a more detailed appeal is needed.  On a more detailed appeal we will need all the information and documentation as to why you feel the penalties should be abate.  A clear, concise letter of explanation can then be prepared and submitted with the documentation establishing your case to the IRS appeals office for review.  The strong case we present the easier we make it for the IRS to approve the penalty abatement.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs Video: I Filed Late and Have a Penalty, How Can I Get the Pen...

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: I Filed Late and Have a Penalty, How Can I Get the Penalty Abated?

 

For years you have made estimated tax payments, filed your tax return, and paid your taxes on time.  But, as happens to so many people you have an unexpected event that contributes to you missing the April 15 filing deadline and missed making your tax payment on time.  You also failed to file an extension.  Whether you file and pay in one month or 6 months, you are likely to be assessed under Internal Revenue Code section 6651 a Failure to File Penalty and Failure to Pay Penalty.

In general to have penalties abated the IRS requires you provide an explanation of reasonable cause.  What "reasonable cause" is can be challenging to prove to the IRS.  For this discussion though the reasonable cause argument will not be needed.  How can you get penalty relief?  The Internal Revenue Manuel (IRM) has an administrative relief provision if you meet qualifying criteria.  This relief is know as First Time Abatement.

Marcelino Dodge, EA helps taxpayers to first see if they qualify and if so, then to take advantage of this administrative relief.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com