Dec 19, 2007

Your tax debt- Part 10 – Currently Not Collectible- “CNC”- Only the Financial Review?

Will the IRS only do a financial review to put you in a CNC (i.e. only a Form 433A/F and documentation review??)

In short, it depends on the amount of tax that you owe. If your balance is above an undefined amount (defined in the unpublished IRS Law Enforcement Manual or “LEM”), outside investigation is warranted. If you owe above $100,000 it is commonly known that a full financial investigation will occur. What is that financial investigation??

According to the IRS Internal Revenue Manual, the investigative procedures are as follows:

For domestic accounts with an aggregate unpaid balance at certain
Amounts (in the LEM), research of the following resources is required:
o telephone directories
o postal tracers
o IRP (i.e. Forms W-2 and 1099, etc. filed under the liable parties SSN or EIN)
o DMV listings
o employment commissions
o real and personal property records
o local licensing authorities when a taxpayer has a business that requires a license
o on-line services that help in locating taxpayers, such as Accurint
o RTVUE (which is the IRS computer data on your filed tax return) if the due date of the last filed return was within the past two years. Use RTVUE to determine if a copy of the return should be secured to further develop leads to locate the taxpayer, assets or levy sources

For international accounts, the same sources will be checked whenever available
for the country in question.

It is recommended that you consult a competent tax professional for representation in this investigation. Find a professional that can discuss all options and what will happen to you in the IRS investigation into paying your tax debt.

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