I have had a lot of success in filing an original return
after an SFR assessment. The trick is getting the return to
the right place. The IRS refers to an Original Return filed
after an SFR as a SFR Protest return. You should mail it
to:

Internal Revenue Service
Brookhaven Campus
ASFR Unit - Mail Stop 654
Post Office Box 9013
Holtsville, NY, 11742-9013

For 1998 and later, he can go to the IRS and request a
printout of all the IRP documents (W-2s and 1099s) and
request help in preparing returns. They are not going to do
him any big favors (if he is a schedule C filer) but they
will get his filing status and exemptions right.

After all the returns are filed he can evaluate an Offer in
Compromise or an installment agreement. The IRS will accept
an installment agreement with a 60 month term without
financial information if the tax (exclusive of penalties and
interest) is less than $25,000. All you have to do is call
ACS and request a 60 month.

Cody Mayo
Shreveport, Louisiana.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"TaxMatters" wrote:
- quote -

By the statement above the Last Filed Return is 1040-1998 He
needs to file 1993, 1999 -> 2005 as soon as possible, the
ability to pay for professional services is the limiting
factor on ho FAST he can accomplish this goal.

- quote -

In summary
He can not afford to pay for profesional return prep on
~all~ issues!
He can not afford to pay the actual tax due imediately for
the lien period!
He can not afford to pay the taxes due on subsequent
non-filed years!
He has available cash flow to afford a payment agreement
for the new consumer loan & additional tax debt.

The tax lien will remain in his credit report as long as the
tax year remains unpaid plus up to seven additional years
after the lien is either paid in full or becomes
unenforcable. Sometime in 2007 the collection satute will
expire assuming no extensions have been applied to the
statute.

I would hope his account is now on the radar screen due to
accounts inquiry by you & him, it might be in active
collection processing, ACS or REVENUE OFFICER.

He needs to get down to reality:

1) A potential creditor has made a prudent risk assessment
simply based on the unsatisfied lien, they do not trust his
promise to pay back the proposed loan!

2) His tax compiance problems might be getting worse, if he
choses to resolve this root issue, Proffesional financial
counseling & return preperation is needed!

3) His means to satisfy these obligations should be applied
to the above issue in the following priority, Filing
Compliance, Propose & maintain a reasonable plan to pay the
tax debt, upon full payment of all tax obligations, approach
a commercial creditor for loans to do what ever it is that
he desires.

4) Maintain full tax compliance, and satisfy the debt's
accrued for the rest of his life, like all responsible
citizens the greatest country in the world!

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"TaxMatters" <TaxMattersLLC[at]msn.com> wrote:

- quote -

Note that this does not mean that they will change the
amount on the public notice of lien.

- quote -

Ain't gonna happen without an accepted offer in compromise.
An installment agreement may prevent new liens for the new
old returns, but they won't release the filed one until it's
paid or settled. Client should also be aware that the
satisfied lien will stay on his credit report for some time
after satisfaction.

What's the purpose of the loans? If you can show that
letting the lendor take priority over the tax lien will
enhance the taxpayer's ability to pay the taxes you can
pursue a subordination.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I am new to this group but respect the knowledge that I have
been reading in the posts. I have a new client who never
filed 1993 return. IRS prepared substitute for return in 97
and assessed tax of $7000. Client has not filed any returns
since 1999. Client applied for loan recently and Tax Lien
showed up of $10,000 on credit report showing reported date
of 02/2002. I contacted IRS re status and was advised the
balance is now $20,000. Client wants to file original return
now hoping to lower amount of Lien (he still thinks balance
is $10,000) IRS said may consider accepting original return
if I file it now. They would then adjust the balance
due-updating interest & penalties. IRS is asking me to file
tax returns for client for 2000 & 2001 now as well. The
client wants to clear the lein from his credit so he can get
loans approved. Doesnt have the funds to pay off the lein
but willing to set up payment agreement.

Does anyone have any advice or alternate suggestions. I
don't want to steer the client in the wrong direction.

John Daubman

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >