One-Year-Rule

[taxea]

Snag...mahalo nui from Wahiawa. I appreciate your references and will research this through the author.

EDIT: I checked Moore's site and he has an interesting and useful article on voluntary payments to the IRS. Boy..the things they don't tell you....According to Moore these payments can be designated strictly to the principle portion of the outstanding tax liability.

1. write the following on the front and back of the check "SSN, type of return-year of return, principle
portion only.
2. send the check to LOCAL tax office (personally I would instruct the client to take the check to the office and get a receipt)
3. keep good records of each payment (copy of front and back of check with receipt attached)
4. get an accounting from IRS every 6 months to insure that they have properly posted the check

This changes my whole procedure for installment agreements.taxea

[Lion]

Article

I joined not long ago and was finally getting around to reading their journal that came recently. You're right; it's a great article. I didn't know about the rule. Thanks for pointing that article out to me. I might not have read it thoroughly since I'm not doing any representation right now, but it's a short and to-the-point article that I'm glad I read thoroughly. Now, I have a new piece of info stored in my brain to pull out and use at the appropriate time. That's why I joined multiple organizations (NATP, NAEA, and NY/CT-ATP) to broaden my horizons in a way that can make me more valuable to my clients. Thanx.

[Snaggletooth]

Reference

Good evening to Wahiawa -

I was really impressed by the article, and not sure what kind of factors are involved with me attempting to reproduce a printed article without NATP sanctions.

However, the author is Terrence J. Moore, a tax lawyer practicing in Southern California.
He might respond if you contact him. He has a website and an e-mail address, and readers of the article are invited to use it. I guarantee if you are helping someone arrange for an installment agreement, this article will be extremely valuable.

Website:

http://www.moorelawonline.com

e-mail address:

tjlmaw@pacbell.net

Best wishes - Snag

[taxea]

One-Year-Rule

Hey, Snaggletooth...how about sharing this item with us. I checked the site but as I am not a member I couldn't find the article.taxea

[Snaggletooth]

NATP has a very enlightening article on how to invoke the "One Year Rule" on installment sales for cash-strapped clients. I didn't even know it exists (and the writer emphasizes that it is not well-known at all).

Good and helpful. All of us wind up with 433A and 433B clients from time and time.