Home Tax Find out how to Efficiently Negotiate Efficient Tax Administration Circumstances

Find out how to Efficiently Negotiate Efficient Tax Administration Circumstances

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Find out how to Efficiently Negotiate Efficient Tax Administration Circumstances

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effective tax administration definition

What’s Efficient Tax Administration?

Efficient tax administration (ETA) instances are one space the place tax professionals actually get to place their negotiation expertise to work. This kind of Supply in Compromise comes into play when a consumer doesn’t dispute the quantity of tax owed, and even has the cash to pay, however has a rare purpose for not paying.

With a view to get your efficient tax administration case accepted, you will have to persuade the IRS that accepting the supply will in the end be extra useful than gathering the tax.

The IRS splits potential ETA presents into two totally different situational classes—financial hardship, and public coverage or fairness grounds. That will help you perceive acceptable ETA presents that will match into every of those classes, we’re going to take a look at potential situations offered immediately by the IRS.

Financial Hardship

Financial hardship is a consideration for shoppers who’ve the power to pay their tax debt in full, however doing so would place them in extreme financial hardship.

Instance:

fixed income taxpayer

—IRM 5.8.11.2.1

Public Coverage or Fairness Grounds

Public coverage and fairness presents are for conditions when “assortment in full would undermine public confidence that the tax legal guidelines are being administered in a good and equitable method.” Efficient tax administration presents ought to mirror the state of affairs specified by the supply and can’t be $0.

 Instance:

PSP

—IRM 5.8.11.2.2

Now that you just perceive ETA, you are effectively in your option to being an Supply in Compromise knowledgeable.

 



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