Unlike your garden variety LostHead, who can't figure out why he always loses, LostHead kae doesn't know why he, at least temporarily, won.
On 4/20 he posted:
I've been placed in non-collectable status and the Appeals Officer was the kindest person with a brain I've dealt with in the most corrupted office of our Government, ...
"Currently non-collectable" (CNC) status is the poor man's offer in compromise. Kae convinced Collections or Appeals, with proper documentation, that he is a bloodless turnip, i.e., that his income does not exceed his outgo by enough to make an installment agreement economical. CNC does not toll the statute of limmitations on collections, so if kae's account stays CNC long enough, IRS will have to write it off.
Today, he posted:
I got my "Release of Levy" yesterday. now comes "CLAIM FOR UNAUTHORIZED COLLECTION ACTIONS UNDER IRS 7433 & 26 CFR 301.7433-1"
Having escaped the bear's notice by making himself small and pitiful, kae has decided to poke the bear with a stick.
"Here is a fundamental question to ask yourself- what is the goal of the income tax scam? I think it is a means to extract wealth from the masses and give it to a parasite class." Skankbeat
That's not poking the bear with a stick, that's winding up and kicking him in the butt with a Size 14 steel-toed boot.
"We've been attacked by the intelligent, educated segment of the culture." -- Pastor Ray Mummert, Dover, PA, during an attempt to introduce creationism -- er, "intelligent design", into the Dover Public Schools
Kae obtained CNC status -- winning with an actual, non-frivolous, non-Cracking-the-Code, real-world issue ("ah gots no money, folks") in a dispute with the mean ol', bad ol' gubbermint revenoors, and now he/she doesn't know enough to leave well enough alone.
S-T-U-P-I-D.
STOOOOOOO-PID.
In my practice, I prepare requests for waiver of penalties from time to time. Typically, when I do one of these, I also include a paragraph to the effect that in the event that the Service does not grant the request for waiver, we request in the alternative that the account be put into currently not collectible status.
Usually we win on the waiver request, but recently I had one where the Service denied the request for waiver of a penalty for late filing of a Form 1065 (wrongly, in my view), but granted CNC status. Yep, the CNC status will probably result in the statute of limitations eventually expiring, since the entity (a partnership in a recently closed Chapter 7 bankruptcy) for most intents and purposes no longer exists. Not only is there no blood in the turnip, there is essentially no longer a "turnip". I guess that a general partner might theoretically be on the hook for the penalty if the IRS bothered with that, but that's a long shot. The Service will probably issue a reminder letter (to the "thin air") once a year -- and since the "status" of the no-longer-existing-partnership will not have changed a year from now, or two years from now, or three years from now, etc., the CNC status presumably will remain -- at least until the statute finally expires.
I wonder if the IRS has a computer program for automatically abating old taxes, penalties and interest when the statute expires (??).
"My greatest fear is that the audience will beat me to the punch line." -- David Mamet
5.16.1.1 (04-29-2011)
Currently Not Collectible Policy and Procedure Overview
Policy Statement P-5-71 provides the authority for reporting accounts currently not collectible (CNC). See IRM 1.2.14.1.14, Policy Statements for Collecting Process. Accounts can be removed from active inventory after taking the necessary steps in the collection process.
Accounts may be reported CNC for a variety of reasons using transaction code (TC) 530. It is a requirement that TC 530 be defined by the appropriate closing code (cc). The most commonly used closing codes are displayed in the table below.
Currently Not Collectible Closing Codes
Closing Code Definition
03 inability to locate the taxpayer or assets
04 partial expiration of the assessment prior to issuance
05 complete expiration of the statutory period for collection or suit initiated to reduce tax claim to judgment
06 for use by revenue officers on international casework, where a taxpayer can pay but the service is unable to collect a liability because the taxpayer resides in a foreign country
07 a corporation, exempt organization, or Limited Liability Company (LLC), where the LLC is identified as the liable taxpayer, liquidated in bankruptcy
08 death of an individual with no collection potential from the decedent/decedent estate
09 accounts below tolerance; see IRM 5.16.1.2.5(1) and (2) Tolerance, for additional information
10 corporations, certain limited liability partnerships, exempt organizations, or LLCs, where the LLC is identified as the liable taxpayer, which are inactive and defunct with no assets
12 inability to contact a taxpayer although the address is known and there is no means to enforce collection
13 a corporation, exempt organization, limited partnership, or LLC, where the LLC is identified as the liable taxpayer, remains in business and is current but is unable to pay back taxes
14 when suspending collection of BMF balance due accounts when the key individual is deployed to a combat zone; see IRM 5.1.7.9.1, Business Masterfile (BMF) Accounts of Taxpayers Deployed to a Combat Zone, for additional information
15 obsolete - this was formerly used for corporate income tax liabilities owed by a financial institution certified as insolvent by the Office of the Controller of the Currency or the Office of Thrift Supervision
17 inability to locate the Single Member Owner (SMO) or assets of the SMO who is liable for taxes assessed under an LLC Employer Identification Number (EIN)
18 inability to contact a Single Member Owner (SMO) who is liable for taxes assessed under an LLC EIN when the SMO address is known, and there are no means to enforce collection
19 accounts below tolerance that are assessed under an LLC EIN, but owed by SMO; see 5.16.1.2.5, Tolerance, for additional information
24 - 32 collection of the liability would create a hardship for taxpayers by leaving them unable to meet necessary living expenses
“Where there is an income tax, the just man will pay more and the unjust less on the same amount of income.” — Plato
Famspear wrote:I guess that a general partner might theoretically be on the hook for the penalty if the IRS bothered with that, but that's a long shot.
Not only theoretically, but actually. The IRS can and has collected the failure to file penalty for the 1065 form. The penalty in this case is assessed for the number of general partners in the entity times the number of months the return was late (maximum of five months) times whatever the current base penalty dollar amount (I remember it as being $25 but it could have been raised). On the other hand, the IRS had a policy of abating the penalty if each of the general partners could show that they had filed their 1040 forms timely for that year, in essence demonstrating that they had reported their income from the partnership accurately, albeit on another form. The whole purpose of this exercise was to hopefully ensure that the partnership would report timely and accurately as opposed to just collecting extra penalties.
Famspear wrote:I wonder if the IRS has a computer program for automatically abating old taxes, penalties and interest when the statute expires (??).
There is programming for the master file that will abate all of the assessments relating to the statute date that expired. Sometimes other status or input codes on the tax period might prevent this from happening systemically, and will require human intervention to complete the process.
"I could be dead wrong on this" - Irwin Schiff
"Do you realize I may even be delusional with respect to my income tax beliefs? " - Irwin Schiff
The Observer wrote:....The penalty in this case is assessed for the number of general partners in the entity times the number of months the return was late (maximum of five months) times whatever the current base penalty dollar amount (I remember it as being $25 but it could have been raised).....
Yes, it's now at $195 per partner (and it's based on the total number of partners, not just general partners) per month, up to a maximum of twelve months.
Same for failure to timely file a Form 1120S for an S corporation ($195 per shareholder per month, up to 12 months).
"My greatest fear is that the audience will beat me to the punch line." -- David Mamet
Kae is basking in the glow of his(?) magnificent victory;
I'm in the process of creating my road map to this Victory. I'm still recovering from the numbing effects of the vicious corrupt attack..
Yup, the "I'm dirt poor, with nothing that can be seized to cover my debt" is a brilliant tactic. Don't think I've seen that one in CtC, though. Is Kae speaking heresy?
My case was proving to them I'm broke. I've lost everything, and they put me in an uncollectable status, so my 1st victory is good, but a 2nd Victory is necessary and it won't be until I also win in the "Claim for Unauthorized Lien" i.e. $50,000 for anxiety, mental distress, frustration, and headaches, which almost drove me to the point of nervous breakdown.. trust me, it was awful.
That's right, an overblown sense of entitlement is just what you need now.
Thank you! I've researched many of the ones you mention. I was able to afford Patriot Network. They saved me by assisting in the correct procedures.. my concern is knowing the truth is great, but Pete is sitting in jail. I know enough not to even step foot in corruption court, alone. We can beat them by staying within the "administrative" arena. I think PN [PH?] knows the how to win in court, we don't, simple observation...
Yeah. Petey sure knows how to win in court. He's got those meanies juuuuust where he wants them.
Survivor of the Dark Agenda Whistleblower Award, August 2012.
Has he even considered the irony of the fact that if he got a $50k award from the IRS then he would no longer be CNC, and they could levy the award?
I know, I know, but why not believe 6 impossible things?
Supreme Commander of The Imperial Illuminati Air Force
Your concern is duly noted, filed, folded, stamped, sealed with wax and affixed with a thumbprint in red ink, forgotten, recalled, considered, reconsidered, appealed, denied and quietly ignored.
I think this guy comes under the too dumb to walk and chew gum clause.
The fact that you sincerely and wholeheartedly believe that the “Law of Gravity” is unconstitutional and a violation of your sovereign rights, does not absolve you of adherence to it.
Gregg wrote:Has he even considered the irony of the fact that if he got a $50k award from the IRS then he would no longer be CNC, and they could levy the award?
I know, I know, but why not believe 6 impossible things?
It wouldn't even be a levy -- just a simple offset. He wouldn't even get a chance to smell the money.
Gregg wrote:Has he even considered the irony of the fact that if he got a $50k award from the IRS then he would no longer be CNC, and they could levy the award?
I know, I know, but why not believe 6 impossible things?
It wouldn't even be a levy -- just a simple offset. He wouldn't even get a chance to smell the money.
As long as he gets a letter telling him about his latest fail, I'd be good with it.
Supreme Commander of The Imperial Illuminati Air Force
Your concern is duly noted, filed, folded, stamped, sealed with wax and affixed with a thumbprint in red ink, forgotten, recalled, considered, reconsidered, appealed, denied and quietly ignored.
