Collection due process and collection alternatives
100
3 tax crimes
What is tax evasion, tax fraud, and failure to file
100
IRS's formal recording of a tax liability
What is assessment
100
Burden of proof IRS must use to prove fraud
What is clear and convincing evidence
100
Nickname of the Federal Tax Lien
What is the secret lien
100
a proposal for acceptance under the following conditions:
- taxpayer owes less than $10,000
- taxpayer has demonstrated inability to pay at the time
- taxpayer has been in compile for previous 5 years
-taxpayer agrees to remain in compliance
What is a Guaranteed Installment Agreement
200
Required element of tax evasion, failure to file, and tax fraud
What is acted willfully
200
Assessment used to assess tax liabilities reported on tax returns or to assess additional amounts resulting from clerical errors
What is summary assessment
200
failure to file penalty
What is the penalty that starts at 5% of the tax liability and increases by 5% per month up to 25%
200
Amount of time IRS has to collect taxes
What is ten years
200
opportunity for administrative review of the Services collection actions by the Appeals Office but is different than a regular hearing because the Appeals Office will record the outcome differently
What is collection due process equivalent hearing
300
Code that permits IRS to charge individuals for evading taxes
What is Section 7201
300
Assessment used to assess tax liabilities when the taxpayer owes more tax than what was paid
What is deficiency assessment
300
2 reasonable cause exceptions where there is no penalty for the violation
What is ordinary care and business prudence AND taxpayer made reasonable efforts to comply
300
Amount of time IRS has to issue a notice and demand after assessment
What is sixty days
300
case in which IRS does not have to send notice of intent to levy
What is a jeopardy case
400
$25k for individuals and $100k for corporations and up to one year imprisonment
What is the maximum penalty for an individual and corporation for failing to file
400
Assessment IRS uses to without going through deficiency procedures
What is penalty assessment
400
Penalty for civil fraud on underpayment of taxes
What is a 75% penalty
400
period of time where the IRS can hold a sale after notice
What is the sale requirement that you cannot hold the sale within 10 days of notice and not after 40 days.
400
6 types of collection alternatives
What is offer in compromise, installment agreement, taxpayer assistance order, audit reconsideration, Chapter 11 bankruptcy, and reclassification as currently not collectible
500
4 elements required of voluntary disclosure policy
What is timely, complete, truthful, cooperation
500
Amount of time IRS generally has to assess a tax
What is three years
500
8 Badges of fraud
What is any 8 of the following:
1. understating income
2. maintaining inadequate records
3. giving implausible or inconsistent explanations of behavior
4. concealing income or assets
5. failing to cooperate with tax authorities
6. engaging in illegal activities
7. providing incomplete or misleading information to tax preparer
8. lack of credibility of the taxpayers testimony
9. filing false documents, including tax returns
10. failing to file tax returns
11. dealing in cash
500
Other option of the IRS to collect taxes
What is judicial collection procedures
500
3 ways the collection process concludes
What is the collection of the liability in full, an agreement to accept partial payment, and expiration of collection statute