Tax Justice Warriors

2020 became the year for virtual tax conferences due to the COVID-19 pandemic. The ABA Section of Taxation had their May Meeting and Fall Meeting held virtually. There are other conferences being held virtually as well. The Kansas tax training I attend each year is doing a mix of virtual and in-person. What is the best approach? I talk through some of the pros and cons of doing virtual tax conferences.

3 November updates covered in this episode - Economic Impact Payments, Tax Court case management system, and certain IRS notices resume.

• Economic Impact Payments (EIPs) –

Nov. 10 is "National EIP Registration Day," part of a final push to encourage everyone who doesn't normally file a tax return to register to receive an Economic Impact Payment. "National EIP Registration Day" will take place just a few days ahead of the extended Nov. 21 registration deadline. This special event will feature support from IRS partner groups inside and outside of the tax community, including those that work with low-income and underserved communities.

Why does this matter if you could potentially get your EIP on the 2020 tax return?  Because the EIP will look like the refundable credits and could be absorbed by tax liability.  For those who need their EIP, that is another barrier to receiving this much-needed money from the IRS.

• Tax Court case management system

In late 2020, the Tax Court will be launching DAWSON, the Court’s new case management system.  The Court expects DAWSON to be active by December 28, 2020.To facilitate the transition to DAWSON, beginning at 5:00 PM Eastern Time on November 20, 2020, the current e-filing system will become inaccessible and all electronic files will become read-only. 

For those of you needing to file electronically with the Tax Court, it will be unavailable after November 20 until it becomes available again in December!

• Certain IRS notices resume

The IRS will resume issuing the 500 series balance due notices to taxpayers later this month. These notices were paused on May 9 due to COVID-19.

Although the IRS continued to issue most agency notices, the 500 series were suspended temporarily because of a backlog of mail at the IRS due to COVID-19. The IRS says their mail backlog is now “caught up enough” to account for the timely mailed payments. In late October or early November some taxpayers will begin seeing the updated 500 series notices with current issuance and payment dates.

The 500 series includes three different types of notices alerting taxpayers of varying stages of nonpayment — the CP501, the CP503 and the CP504.

The CP501 notice alerts individual taxpayers that they still have a balance due and provides their options.

The CP503 alerts taxpayers that the IRS hasn't heard from them and they may be subject to a lien if they don't pay.

The CP504 alerts taxpayers that they must pay their balances immediately or possibly face a levy of their state income tax refunds.

With the pandemic, the U.S. Tax Court is working on cases virtually.  That means there are different procedures for the calendar call docket and trials with the Tax Court.  The week of October 5, 2020, was the scheduled week for Tax Court cases in Kansas City.  I provide details for the 6 cases called that day, how they were dealt with procedurally, and give insights into dealing with this new virtual world of Tax Court.

What is involved in practice before the U.S. Tax Court?  There are specific procedures for both attorneys and non-attorneys to be admitted to the Tax Court.  This episode provides information about what is involved for non-attorneys to pass the examination in order to practice before the U.S. Tax Court.  This episode also looks at the required forms and fees for admittance.  Beyond that, non-attorneys have a large commitment of time, travel, and study in order to pass the exam.  Did you know that the passage rate is between 5 and 19%?  There are study groups that may help with your passage rate, but it could get expensive!

Last year, the Taxpayer Advocate Service released the Taxpayer Roadmap.  I am doing a 6-part review of the various stages of the United States federal tax system as shown on the Taxpayer Roadmap. 

To find out more about the roadmap, use this link:  https://taxpayeradvocate.irs.gov/roadmap

Part 5 of the 6-part series is a look at IRS Appeals.  Appeals is often the department a taxpayer is working with when there is a dispute about the tax assessment and it is necessary to negotiate for a resolution regarding the result.  Appeals may start to be involved when a taxpayer files a protest letter with the IRS.  Appeals may also start to be involved after the taxpayer files a petition with Tax Court.  Overall, it is best to gather all supporting documents to make the case, but be organized in making the case with Appeals in order to come to the best settlement.

Last year, the Taxpayer Advocate Service released the Taxpayer Roadmap.  I am doing a 6-part review of the various stages of the United States federal tax system as shown on the Taxpayer Roadmap. 

To find out more about the roadmap, use this link:  https://taxpayeradvocate.irs.gov/roadmap

Part 4 of the 6-part series is a look at IRS Collections.  Collections takes over when a taxpayer does not pay an amount owed to the IRS.  This episode will discuss the process of actions taken by IRS Collections such as notices sent, the selection of cases worked and the seizure of assets leading to lien or levy enforcement.  There are also alternatives available such as levy or lien relief, installment agreement, currently not collectible, bankruptcy, disagreeing with the assessment, Offer in Compromise or payment in full.

Last year, the Taxpayer Advocate Service released the Taxpayer Roadmap.  I am doing a 6-part review of the various stages of the United States federal tax system as shown on the Taxpayer Roadmap. 

To find out more about the roadmap, use this link:  https://taxpayeradvocate.irs.gov/roadmap

Part 3 of the 6-part series is a look at IRS Examination.  The department really digs into the differences between what the taxpayer submitted on the tax return and what the IRS believes should be on the tax return.  Is the taxpayer disputing what the IRS assessed?  Several examinations result through the assessment and screening process.  Overall, there are three types of exams that we all think of as audits:  correspondence (letters), office (taxpayer going into IRS office), or field exams (the IRS visits the taxpayer’s residence or business).

Last year, the Taxpayer Advocate Service released the Taxpayer Roadmap.  I am doing a 6-part review of the various stages of the United States federal tax system as shown on the Taxpayer Roadmap. 

To find out more about the roadmap, use this link:  https://taxpayeradvocate.irs.gov/roadmap

Part 2 of the 6-part series is a look at tax return processing.  The department looks at returns to see if there is a refund claim or a balance due.  The IRS checks the return to be sure there is no identity theft or other fraud.  Next, the IRS checks the return for math errors and accurate reporting of financial information.  If there is an issue found, does the taxpayer agree or want to dispute the issue?  These and other topics such as tax return processing in the COVID pandemic era are discussed.

Last year, the Taxpayer Advocate Service released the Taxpayer Roadmap.  I am doing a 6-part review of the various stages of the United States federal tax system as shown on the Taxpayer Roadmap. 

To find out more about the roadmap, use this link:  https://taxpayeradvocate.irs.gov/roadmap

I begin the 6-part series with a look at tax preparation.  This episode looks at the various parts of tax preparation such as gathering documents, going to a tax preparer, free filing options, going to VITA or AARP Tax-Aide, filing an extension, and more.