Findings Are As Follows

Per conference call on February 2, 2016, Yukari and Cade were assigned to contact the Internal Revenue Service to find out more information regarding intent to seize notice (attached) that was forwarded from Marc Core, CPA.

Findings are as follows:

On February 3, 2016, Yukari called and spoke to Mrs. Frenkle (ID 1000177771) regarding the notice LT11 (intent to seize your property or rights to property) from IRS. Mrs.Frenkleinformed Yukari that DLAT did not file the federal taxes in a timely manner for the tax years 2005, 2006 and 2012; therefore, owe the IRS total of $16,514.48 in penalties and interest.

TAX YEAR / DUE DATE / EXTENDED DUE DATE / IRS RECEIVED DATE
2005 / March 15, 2006 / November 15, 2006 / October 30, 2007 – 10 months late
2006 / March 15, 2007 / November 15, 2007 / February 27, 2008 – 3 months late
2012 / March 15, 2013 / August 15, 2013 / November 13, 2013 – 3 months late

Mrs. Frenkle went on to state that in 2014, Marc verbally stated to IRS that DLAT will make a full payment within 60 days; however, that did not happen. Therefore, IRS escalated this seize action.

IRS has offered to put DLAT on temporary hold for collections status until February 19, 2016, but if DLAT does not take immediate action, IRS will levy/seize DLATassets including DLAT bank account.

Mrs. Frenkle informed Yukari that the IRS offers a process called offer in compromise. Please read form 656 booklet (attached) for more information (it looks like DLAT needs to file a request and if approved cansettle for less than the total amount).

Yukari and Cade had a conversation withMarc Core (CPA) and Milton (DLAT executive director during above years) and they both thought the taxes were filed within the due dates; however they are unable to provide documents proving that since there was a flood at Milton’s residence and Marc have shredded his copies of the documents.

Update: February 17, 2016

On February 17, 2016, Yukari called and spoke to Mrs. Hamrick (ID 1000730298)

Yukari asked the question “when did IRS first notify DLAT of 2005 and 2006 returns were missing?”

Ms. Hamrick states there’s a note about IRS missing 2005 and 2006 returns but not sure when IRS first contacted DLAT since her computer only goes back to 2007 so she thought account transcripts (internal notes) may help. Yukari ordered account transcripts for 2005, 2006 and 2012 (no charge); should be here in about 5 to 10 business days. If DLAT needs more info than what’s on the account transcript, Mrs. Hamrick suggested DLAT refer to IRS.gov Freedom of Information Act (could be audio, but not for sure. This could help explain the situation to the membership if needed).

Abatement of 2012 penalty

complete form 843 and mail to IRS along with the extension document from Marc
should get a reply from IRS in about 30 – 45 days

DLAT needs to inform IRS of the decision whether – pay in full, payment plan or offer in compromise by February 26, 2016. (IRS has put DLAT on temporary hold for collections status until February 26, 2016)

Pay in full – DLAT will not have received the response regarding abatement of 2012 penalty by February 26, 2016; however, IRS expects the full $16,514.48

Payment plan – IRS prefers DLAT pay within 72 months; however, IRS will set up a payment schedule that DLAT can afford to pay

Update: February 18, 2016

On February 18, 2016, Yukari called and spoke to Ms. Murphy (ID 1001306903)

Yukari asked the question “in the event that 2012 penalties/interests get abated, will DLAT still owe the total amount of $16,514.48?”

Ms. Murphy stated “no, IRS will make adjustments and the balance will reflect the abatement.”

Payment plan

complete form 433D
pay via check – one time set up fee of $120
pay via direct debit from bank account – one time set up fee of $52 (takes about 8 weeks, need to make couple payments by check until set up is complete)
payments can be calculated by dividing $16,514.48 by 72 months = $229.36
payment due date can be set between 1st through the 28th of each month, date convenient for DLAT

Update: February 26, 2016

TAX YEAR / DUE DATE / EXTENDED DUE DATE / IRS RECEIVED DATE / STATUTE EXPIRATION DATE
2005 / March 15, 2006 / November 15, 2006 / October 30, 2007 – 10 months late / 2018
2006 / March 15, 2007 / November 15, 2007 / February 27, 2008 – 3 months late
2012 / March 15, 2013 / August 15, 2013
Found extension document November 15, 2013 / November 13, 2013 – 3 months late

On February 26, 2016, Yukari called and spoke to Ms. Bowman (ID 1000730157)

Yukari requested DLAT be put on payment plan using simple calculation (payments can be calculated by dividing $16,514.48 by 72 months = $229.36) per previous conversation with IRS

Ms. Bowman stated that it appears that IRS didn’t take into consideration of the statue expiration during previous conversation. Penalty for 2005 expires in 2018; therefore, 2005 penalties need to be paid prior to the 2008 expiration period. This increases the payment to $611.00 and not $230. Yukari stated that there’s a huge difference between $611 and $230

Ms. Bowman went on to suggest the following action to be taken by DLAT:

complete form 843 abatement for 2012
mail a payment of $230 monthly until DLAT receives reply of 2012 abatement results
DLAT is on temporary collection hold status until April 29, 2016 as long as DLAT makes a monthly payment of $230
contact IRS upon receipt of 2012 abatement status or April 29, 2016 – whichever is sooner and a new payment plan can be established

Update: March 3, 2016

TAX YEAR / DUE DATE / EXTENDED DUE DATE / IRS RECEIVED DATE / STATUTE EXP DATE / ADDITIONAL INFORMATION
2005 / Mar 15, 2006 / Nov 15, 2006 / Oct 30, 2007
10 months late / 2018 / Received transcript
2006 / Mar 15, 2007 / Nov 15, 2007 / Feb 27, 2008
3 months late / Received transcript
2012 / Mar 15, 2013 / Aug 15, 2013 / Nov 13, 2013
3 months late / Found extension document, mailed abatement request to IRS

Action items (√ = task completed)

complete form 843 abatement for 2012 √
mail a payment of $230 monthly until DLAT receives reply of 2012 abatement results √
DLAT is on temporary collection hold status until April 29, 2016 as long as DLAT makes a monthly payment of $230
contact IRS upon receipt of 2012 abatement status or April 29, 2016 – whichever is sooner and a new payment plan can be established

DLAT received the transcripts for 2005, 2006 and 2016 on March 2, 2016 (see attached). Some of the information is self-explanatory; however, some are not and are highlighted.

Tax year 2005

DATE OF EVENTS / DESCRIPTION OF EVENTS
May 23, 2007 / IRS contacted DLAT that tax return not filed
Oct 30, 2007 / IRS received tax return
Jan 7, 2008 / IRS issues delinquency penalty
Mar 31, 2008 / Blocked from automated levy program
Mar 13, 2010 / IRS deems DLAT not collectable
Oct 15, 2012 / IRS considers collectable
Nov 12, 2012 / Blocked from automated levy program
Jan 23, 2014 / Appointed representative = Cade/Yukari think power of attorney assigned to Marc Core CPA
Aug 11, 2014 / Blocked from automated levy program
Jan 6, 2016 / IRS sends notice of intent to levy
Jan 22, 2016 / IRS received signed notice of intent to levy = Cade/Yukari think IRS mailed the intent to levy using UPSP certified mail and Marc Core CPA signed that he received the notice

Tax year 2006

DATE OF EVENTS / DESCRIPTION OF EVENTS
Apr 28, 2008 / IRS issues delinquency penalty
Jul 21, 2008 / Blocked from automated levy program
Mar 13, 2010 / IRS deems DLAT not collectable
Oct 15, 2012 / IRS considers collectable
Jan 23, 2014 / Appointed representative = Cade/Yukari think power of attorney assigned to Marc Core CPA
Aug 11, 2014 / Blocked from automated levy program
Jan 6, 2016 / IRS sends notice of intent to levy
Jan 22, 2016 / IRS received signed notice of intent to levy = Cade/Yukari think IRS mailed the intent to levy using UPSP certified mail and Marc Core CPA signed that he received the notice

Tax year 2012

DATE OF EVENTS / DESCRIPTION OF EVENTS
Dec 9, 2013 / IRS issues delinquency penalty
Jan 23, 2014 / Appointed representative = Cade/Yukari think power of attorney assigned to Marc Core CPA
Aug 11, 2014 / Blocked from automated levy program
Jan 6, 2016 / IRS sends notice of intent to levy
Jan 22, 2016 / IRS received signed notice of intent to levy = Cade/Yukari think IRS mailed the intent to levy using UPSP certified mail and Marc Core CPA signed that he received the notice

Discussion points:

Could it be possible that Marc suggested DLAT change bank accounts during 2008, 2012 and 2014?

Is that why IRS states blocked from automated levy program?

Cade/Yukari found bank statements from the following banks:

Bank of the West (3 accounts) from January 2009 through April 2014

North Dallas Bank and Trust (3 accounts) 2012, 2013, 2014 (account closed by Cade/Gary Box, November 2014)

DLAT continue to make payments of $230 per month

Marc stated that there’s an automatic 10 year expiration

IRS stated that penalties for 2005 expire in 2018

When will penalties for 2006 expire? Maybe 2018?

If IRS abates 2012 penalties = deduction of $1920.74 from total

Update: April 29, 2016

On or around April 8, 2016, DLAT received notice from IRS stating that they are still researching the abatement request (attached).

On April 29, 2016, Yukari called IRS and spoke to Mrs. Herbert who informed Yukari that DLAT is not on an official payment plan since IRS still is researching the abatement request. However, Mrs. Herbert has put DLAT on protection status until we receive the abatement request and can be put on an official payment plan. Until then, Mrs. Herbert went on to suggest the following action to be taken by DLAT:

Continue to make voluntarily payment of $230 monthly until DLAT receives reply for 2012 abatement results
Contact IRS on June 20, 2016

DLAT payment history

Date / Check number / Amount
February 26, 2016 / 1015 / $230
March 29, 2016 / 1016 / $230
April 29, 2016 / 1014 / $230

Update: April 6, 2017

DLAT volunteer payment history

Date / Check number / Amount
February 26, 2016 / 1015 / $230
March 29, 2016 / 1016 / $230
April 29, 2016 / 1014 / $230
May 26, 2016 / 1023 / $230
June 26, 2016 / 1024 / $230
July 12, 2016 / 1027 / $230
August 19, 2016 / 1026 / $230
September 16, 2016 / 1025 / $230

On October 4, 2016 – received letter from IRS “Notice of Federal Tax Lien Filing”

Amount of lien are as follows:

Tax period 2005 = $5830

Tax period 2006 = $3920

On October 12, 2016 – received letter from IRS regarding approval to pay taxes in installments with first payment of $230 due on November 15, 2016 with future payments of $203 on the 15th of each following month until the full amount is paid.

DLAT payment history

Date / Check number / Amount
October 14, 2016 / 1028 / $230
November 2, 2016 / 1030 / $203
December 9, 2016 / 1033 / $203
January 12, 2017 / 1035 / $203
February 10, 2017 / 1038 / $203
March / $203