We are filing CDP for notice of levy and intent to levy for payroll taxes + civil penalties for corp and individual. We also received letter 3471 (not exactly sure of number) but IRS collection agent said we lost CDP right on it. My questions are:
1) Can we still file CDP for those letters?
2) if we are filing CDP with Offer in Compromise and installment agreement as collection alternatives:
a) can we still request to put case in an noncollectable stage?
b) What are the valid reasons to request CDP hearing?
c) If we are ok to pay unpaid taxes but not Penalties and interest on penalties - is it a valid request on OIC - if most penalties are related to trust fund recoveries?
We are still in 30 days of most notices. Not sure for letter (probably # 3471) that lists most period and the highest liabilities incl penalties received last week can be added in CDP. Do I have to file second CDP for officer of a corp? Client mention about IRS's lien on his property but IRS collection agent does not know anything about it. how can we find out if there is a lien filed? If we close the company and start a new company - can it take care of any liabilities on company side? Company does not have any assets other than small equipments and Plants which they can not sell any way. The only issue is the equity in the house of a taxpayer owned personally. taxpayer is 72 on Social security and $200 a month is already taken by IRS. Q1 - Rephrased: Collection department also sent out letter number 3174 stating some period with liabilities and penalties (along with other notice of intent to levy) which according to them can not be requested CDP. I am not sure if that is right.
I am not really sure I understand the facts well enough to answer your first question, so let me answer your second.
a) You can request uncollecible status at your CDP if you qualify
b) You can request a CDP to enter into payment plan or also to claim hardship
c) Having penalties waived could be difficult in a Trust Penalty case. However, once you are negotiating with the appeals officer, they have lots of flexibility.
My advice is to retain counsel to help you through the process. If the 30 days is quickly approaching, file the request and retain counsel to proceed with the CDP.
Without knowing too many facts about your situation it is tough to address these questions thoroughly, however, I am happy to provide a basic overview of your questions:
1) In most cases you must file your CDP within 30 days of the letter date.
2 (a) and (b) If you feel you are in a noncollectable status, you should indicate this as your reason for requesting CDP. Desiring to enter into an Offer in Compromise, installment agreement or hardship (terminal illness, social security as only income) are some of the valid reasons to request CDP hearing.
2 (c) Based on the information you have provided it sounds like you are potentially noncollectable so negotiating on all outstanding amounts is a possibility. If the IRS determines that you are noncollectable, then you may be in a good position to enter into an Offer in Compromise after the IRS puts you in noncollectable status.
You should consult with a tax law firm that has significant experience in dealing with the IRS, such as our firm, to provide the tax attorney with more specific facts and financial background and the tax attorney will be able to assist you through this process.