E: dpeterson@burkhartpeterson.com / T: (210) 377-3311

Tax Debt Collections Representation

The federal and state taxing authorities sometimes have a limited period of time to collect tax balances owed. If taxes become old enough, they may legally expire. The federal and/or state laws that dictate this are commonly known as “collections statutes of limitations” and the date on which a tax liability is schedule to expire is often referred to as the Collection Statute Expiration Date (CSED). The laws on collections statutes vary between the IRS and the various states.

Because of the existence of a CSED, the IRS and state taxing authorities don't just sit back and wait for you to pay your taxes at your convenience. Instead, they demand timely payment and try to enforce collections against you if payments are not realized quickly. The taxing authorities can use tax levies (garnishments and seizures) and tax liens as tools to help then enforce collections. Typically the taxing authorities will be required to issue advance notices to you advising of their intent to issue levies or file tax liens against you. Receiving these notices can be stressful and intimidating.

Burkhart, Peterson & Company provides extensive representation before the IRS and state taxing authorities to resolve this stress and to make sure that you aren’t being subjected to financial hardships. We can typically stop enforcement threats by negotiating protective holds against to allow time for our clients to get organized, consider all of their available options, and submit affordable proposals to the taxing authorities for resolving the tax debts.

During a typical representation service, we will become familiar with a client’s financial situation and will advise them if legitimate changes to their financial structure may benefit them for pursuing tax resolutions. After implementing any sensible changes, we will make presentations of our clients’ financial circumstances to the taxing authorities and negotiate with the taxing authorities to request approval of taxpayer desired resolutions.

The results of representation services are generally either affordable Installment Agreements (I/As), Partial-Pay Installment Agreements (PP I/As), or securing “Currently Not Collectible” (CNC) status from the taxing authorities for the benefit of our clients. Installment Agreements are reached when a taxpayer can afford to pay off the tax liabilities in full before the collections statutes of expirations are scheduled to expire. Partial-Pay Installment Agreements represent payment schedules that are too low to ever pay off the liabilities owed, but are paid by the taxpayer until the collection statutes expire because it is all the taxpayer can afford to pay. Currently Not Collectable status is granted when the taxing authorities acknowledge that a taxpayer currently has no way to remit payment of back taxes owed.

The IRS and state taxing authorities are typically empowered to re-evaluate a taxpayer’s capability to pay anytime they choose. However, once an arrangement has been reached as a result of representation, the taxing authorities could leave the negotiated agreement in place for up to several years or up through the eventual date of the CSED. A taxpayer can opt to discontinue an approved arrangement at any time. Sometimes this can be in the best interest of a taxpayer that wants to pursue other proactive resolutions such as a Innocent Spouse Relief, an Offer-In-Compromise, Penalty Abatement upon full payment, or Bankruptcy.

If you are being pursued by the federal or state tax authorities and could benefit from professional representation, please contact our office for assistance.

"We hired MULTIPLE tax attorneys and consultants to address our tax problems over the years, but each of them had failed to settle out our tax liabilities for an affordable amount, as promised. When we came to Burkhart, Peterson & Company, we were advised that our federal tax liabilities were scheduled to legally expire within a reasonable amount of time. Burkhart, Peterson & Company represented us before the IRS and then got our tax balances entirely eliminated after the Collection Statute Expiration Date (CSED) had passed. We didn’t have to pay the taxes, penalties, interest, OR any settlement amount!"
Gennady F.
Beverly Hills, CA