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for conspiracy to defraud IRS and tax evasion and owes IRS $1M: IRS granted CNC status.
My undergraduate degree is in engineer- ing science from West Point. My son, Scott, has a Bachelor of Science in mathematics from Grand Canyon University, plus a mas- ter’s degree in mathematics from Purdue. My son, Nathan, has a nance degree from Grand Canyon University. us, we apply a combi- nation of a systems engineering and nancial analysis approach to the tax collection resolu- tion challenge. In addition, as in both the mili- tary and western traditions, as tax controversy attorneys we “surreptitiously and under cover of darkness” “ride herd” on IRS collection ef- forts by obtaining their “Taxpayer Account Transcripts” for each year at issue. ese tran- scripts provide, in chronological order: the past, current, and even planned future actions of IRS. At the risk of overstating our e orts, our tax transcript analysis – o en hampered by numerous errors contained within the transcript – is not unlike crypto analysts deci- phering German messages during World War II with the use of a captured U-Boat code de- vice, code-named Enigma by the British.
Sound preposterous? Well, take for example: by IRS lack of oversight our client was saved $1M! No small potatoes. Absent any “tolling” or “suspension” events, such as a CDPH re- quest or a bankruptcy, under §6502 IRS has ten years from the date of assessment to col- lect the tax liability or le a suit to reduce the assessment to judgment. e duration of the IRS lien is subject to the same statute of limi- tations (SOL) rule. Our client, Bob, was as- sessed tax, penalties, and interest many years ago and in recent years IRS levied his $2k SSA retirement check each month. Bob wanted us to take action regarding the levy; but, seeing from the transcripts that IRS recognized the statute was nearing but planned no action, we advised Bob to let sleeping dogs lie; Bob just might dodge a bullet. We cautioned Bob that the Department of Justice (DOJ), Tax Division, can and might bring suit within the ten-year collection deadline. With eager an- ticipation, especially during the last month of the ten-year term, Bob and TMG awaited the result. No suit was led. We then pulled new transcripts, and gladly read: “Write o – $1M.”
Not convinced? In another recent but very di erent type of example our client Jake was saved $1.2M for lack of attention by IRS. Again, the account transcripts provided us with guidance. Jake and his wife Sally separat- ed, and Sally later led for “innocent spouse relief” under §6015, meaning failure of the couple to pay the tax was the sole fault of hus-
band Jake. IRS agreed with Sally; and, as re- ected on her transcript, abated her liability and released the lien against her. But by gross error, IRS also abated the liability and released the lien for Jake. A perfect example of the le hand does not know what the right hand is doing. IRS asleep at the switch? Meanwhile, the ten-year SOL ran. us, even if IRS were to now catch the transcript entry errors, it is too late for IRS to attempt collection.
Finally, a third riding herd example presents a paradox: the lack of IRS oversight, and, as taught at West Point – lack of RTP (read the problem) and ATD (attention to detail) – oc- curred: (1) during a CDPH; (2) with a Settlement O cer at the helm; (3) followed by Tax Court litigation involving IRS counsel; (4) a remand of the case for a second CDPH; (5) which included advice to the Settlement O cer from additional IRS counsel; (6) re- view of the CDPH decision by the Appeals Manager; (7) fol- lowed by a second Tax Court appeal...
“Taxpayers who owe IRS are often able to settle with an OIC for pennies on
the dollar; i.e., less than 10% of the total tax, penalties, and interest debt.”
Our client Bruce, on SSA
retirement, invested wisely
resulting in income of $560k
for 2005. He led his return in
2006 showing $160k owed of
which he failed to pay $70k. As
to the $70k due to IRS, in 2007
Bruce received his “Urgent – -
nal notice before levy and right
to a CDPH” letter but Bruce
failed to request a CDPH. en
in 2008 Bruce’s CPA pointed
out that Bruce incorrectly included some in- come for 2004-06, and so Bruce led amend- ed returns. IRS accepted 2004 and 2006 but by a strange aberration – not uncommon with IRS, as will be seen – IRS denied the 2005 amended return. Bruce timely appealed. And waited. He would wait seven years ...
Read the full story at https://attorneyatlaw- magazine.com/pennies-on-the-dollar.
DONALD W. “MAC” MACPHERSON HAS BEEN IN PRACTICE FOR OVER 40 YEARS. HIS FORMER CLI- ENTS INCLUDE TWO GOVERNORS, THREE STATE SENATORS, CIA OPERATIVES, A HOLLYWOOD STAR, AND A MAJOR U.S. AIRLINE. MAC IS CERTIFIED BY THE ARIZONA STATE BAR AS A SPECIALIST IN BOTH TAX LAW AND CRIMINAL LAW. HE HAS WRITTEN THREE TAX BOOKS AND TRIED 55 CRIMINAL TAX CASES IN FEDERAL COURT IN 25 STATES. SEE WWW. BEAT-IRS.COM.
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