Tax Basics: Clients Struggling with Debt
Date: Wednesday, September 9, 2026
Instructor: Susan Harper
| Begin Time: |
9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
|
NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Rising household debt and unpaid tax liabilities continue to create significant financial stress for individuals and businesses, leaving many taxpayers unsure where to turn for relief. When tax debt is added to broader financial hardship, the consequences can escalate quickly—resulting in penalties, enforced collections, and long‑term financial damage. This course provides tax professionals with practical guidance for helping clients who are struggling with tax debt and related financial obligations.
Led by Susan Harper, Certified Fraud Examiner and retired IRS Internal Revenue Agent, this course walks participants through the initial steps practitioners should take when clients face tax debt, including timely communication with the IRS. Attendees will explore IRS collection alternatives such as installment agreements, offers in compromise, currently not collectible status, and bankruptcy considerations. The program also addresses penalty relief options, including reasonable cause and first‑time abatement, and examines why clients often struggle with debt. Reporting and tax implications related to the acquisition or abandonment of secured property (Form 1099‑A) and cancellation of debt income (Form 1099‑C) are discussed, equipping participants with tools to guide clients toward sustainable solutions.
Who Should Attend
This course is designed for professionals who assist clients facing financial hardship, tax debt, or debt restructuring issues.
Topics Covered
- Initial steps when clients face tax debt
- IRS collection alternatives and resolution programs
- Reasonable cause and first‑time abatement penalty relief
- Why clients struggle with tax and general debt
- Practical approaches to helping clients manage debt
- Acquisition or abandonment of secured property (Form 1099‑A)
- Cancellation of debt income and reporting (Form 1099‑C)
- Real‑world examples and practitioner considerations
Learning Objectives
- Communicate effectively with the IRS to address client tax debt situations.
- Identify the initial steps to take when a client is struggling with tax debt.
- Evaluate IRS programs available to resolve outstanding tax liabilities.
- Apply reasonable cause and first‑time abatement criteria to reduce or remove penalties.
- Analyze common reasons clients struggle with tax and non‑tax debt.
- Implement strategies to help clients manage and stabilize debt.
- Apply reporting rules for acquisition or abandonment of secured property using Form 1099‑A.
- Assess the tax consequences of cancellation of debt income reported on Form 1099‑C.
Level
Intermediate
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Some familiarity with debt instruments, IRS programs, 1099-A and 1099-C
Advance Preparation
None
