CP92 Notice Received and in Collection


#1

Hello,

I am new in tax resolution and need help please.
New client and never work with him before.

Client received notice CP92 - state refund was taken for 2007 tax due.

1-client filed taxes every year and have received refunds for the past several years.
2-lived at the same address for 20 years but claimed never received any of the notices.
3-Spoke to IRS agent and was told “last statement was mailed in 2010”.
4-owes $7400
5-collection payment due on 8/2/17
6-single
7-self-employed as a taxi driver
8-made $29,000 last year (salary around same amount every year)
9-all tax returned have been filed yearly.
10-state: NY

Help.
What should I do? File an appeal? Offer in compromise? Installment agreement?

Any help would be greatly appreciated.

Have a great day.
Mary


#2

Good Morning Mary,

Establish a Plan of Action:

You enquired as to how to address this issue. Has your client advised how he would like to resolve? Is he willing to enter into an IA or does he want to fight tooth and nail to avoid these actions?

The first step would be to “stop the bleeding” (appeal or pending IA) and keep collection actions at bay, as you develop a “permanent” plan to resolve (potential OIC or Currently Not Collectible-if appropriate).

In addition, you should pull the transcripts to check the CSED…determine how much time is left for collection of the balance owed on the 2007 tax return. If short, you may want to seek a CNC to run out the clock.

You also need to “trust but verify” that your new client is in filing compliance and does not have additional years owed. In many cases, clients tend to “forget” about issues that are outside the immediate threat or action.

Hope this helps in getting you going in the right direction,
Jeff