Taxpayer Assistance Orders in San Jose, CA

The focus of my practice is in working with taxpayers to give them confidence in the resolution of tax and financial issues that is causing unnecessary anxiety and stress. We can relieve you of stress by providing representation before the IRS in the area of collection of tax debt, and finding the best option to satisfy the debt; including installment agreements and offers in compromise.

The taxpayer has rights to have their tax liability handled and treated in a fair manner that does not cause a significant hardship. The Taxpayer Advocate can assist in matters where the taxpayer is suffering from hardship or is about to suffer hardship if forced to abide by an IRS decision or action. Every state, the District of Columbia, and Puerto Rico has at least one Taxpayer Advocate to assist in these types of cases.

In order for a taxpayer to have a Taxpayer Assistance Order (TAO) issued, the taxpayer must first meet the requirements for the significant hardship test. A significant hardship is defined as "serious privation caused or about to be caused to the taxpayer as the result of the particular manner in which the revenue laws are being administered by the Internal Revenue Service.

According to IRC Sec. 7811 (a)(2), the definition of significant hardship includes cases where:

• there is an immediate threat of adverse action;
• there has been a delay of more than 30 days in resolving the taxpayer's account problems;
• the taxpayer will pay significant costs (including professional fees) if relief is not granted; or
• the taxpayer will suffer irreparable injury, or a long-term adverse impact, if relief is not granted.

If the taxpayer qualifies for significant hardship, then a TAO can be issued requiring;

• the IRS to take or refrain from taking any action permitted by law and needed to relieve the taxpayer's significant hardship, and
• the action be taken by a certain time.

The TAO can do the following:

Require the IRS to release levied property, to the extent it can do so by law. With the 21-day freeze put on bank levies, the taxpayer will have sufficient time to use a Taxpayer Assistance Order to recover the money that was levied.

• Require the Collection Division to review certain issues or information, such as financial information supporting a request for an installment agreement.
• Require the case to be reconsidered by the Examination Division.
• Require action be taken on an amended return letter, letter request, or response to a notice.
• Expedite the consideration of a claim, request for determination, or other information under consideration of another function. An example would be, the TAO can require the Appeals Office to expedite consideration of a non-docketed case, or require the Examination Division to review a request for transfer of the case to another office.

If you have an questions in regards to the Taxpayer Assistance Order, feel free to contact me at (408) 627-8079 or email me at dan.ohara@oharataxes.com

Dan Ohara

Ohara Tax Service

1569 Willowgate Dr.

San Jose, CA 95118