Trust Fund Penalty – Who is the responsible person?

The IRS will hold individuals in a company personally liable for trust fund recovery penalties.  The IRS will conduct an investigation to make this determination.  This blog discusses the factors the IRS evaluates during the investigation to determine the individuals considered a “responsible person” for trust fund penalties.
Continue reading…


IRS New "Fresh Start" Program works!

Earlier this year the IRS announced the “Fresh Start” program.  The IRS implemented this program to provide relief to struggling taxpayers.  I discussed the need for program in my blog posting, “IRS Overwhelmed by Offer in Compromise Requests, Changes Made.”  I must admit that I was a little skeptical of this program in the beginning.   But now I am a believer.
Continue reading…


IRS overwhelmed by Offer in Compromise requests, changes made

According to the Treasury Inspector General for Tax Administration (TIGTA) report, the IRS was overwhelmed by Offer in Compromise (OIC) requests.  Due to the backlog of OIC requests, TIGTA recommended changes to the OIC program.  The IRS did implement some of the recommended changes.

Continue reading…


IRS Fiscal year 2011 Data Book

The IRS issued their fiscal year 2011 Data Book.  The 2011 Data Book provides a snap snapshot of agency activities for the year.  For example, the IRS collected $2.4 trillion and processed more than 234 million tax returns.  Below are some interesting statistics related to tax resolution.

82% of annual individual tax returns selected for audit resulted in a change.  On average, the changes made resulted in about $11,000 of additional taxes per return.

71% of annual business tax returns selected for audit resulted in a change.  On average, the changes made resulted in about $850,000 of additional taxes per return.

30% of the annual individual income tax returns selected for audit claimed the Earn Income Tax Credit (EITC).

The IRS Substitute for Return program resulted in $14.4 billion of additional taxes.

The IRS assessed $31 billion in penalties.  The IRS abated $11 billion in penalties.

On average, 34% of individual penalties were abated and 44% of business penalties were abated.

There were 59,000 Offer in Compromises (settlements) filed.  33% of the offers submitted were accepted.

IRS issued 3.7 billion levies.  This is an increase of 4% compared to 2010.

If you need relief from the IRS, ALG Tax Solutions, P.C. can help.  Call us at 855-MI-TaxHelp. (855-648-2943)

IRS Circular 230 Disclosure: To the extent this writing contains advice on a federal tax issue, the advice is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication.