In Welwood v. Comm’r, T.C. Memo. 2019-113, the Tax Court held that a Texas woman did not meet the criteria for equitable relief because she was not able to show sufficient economic hardship and that there was evidence she knew or should have known about the unpaid liabilities. 1 Background2 Criteria for innocent spouse relief … Read more
As Dorian threatens and with the peak of hurricane season just ahead, the Internal Revenue Service posted a reminder to everyone to develop an emergency preparedness plan. Taxpayers, whether individuals, organizations or businesses, should take time now to create or update their emergency plans. Taxpayers can begin getting ready for a disaster with a preparedness … Read more
In Bianca Lavina Gilmore v. Comm’r, T.C. Memo. 2019-97, the Tax Court decided whether the IRS properly levied the Taxpayer’s assets. TLDR: Be sure to make your current year estimated tax payments if you owe back taxes and want the IRS to consider a collections alternative such as an installment agreement. 1 Taxpayer’s unpaid tax … Read more
1 What is bookkeeping?2 Bookkeeping 1013 Bookkeeping might be confusing, but fun What is bookkeeping? Bookkeeping refers to the process of recording monetary transactions. This record-keeping process is usually done by a bookkeeper and the information is then input on a tax return by an accountant. Although online accounting software options now widely available, many … Read more
As of March 2019, U.S. student loan debt amounted to $1.6 trillion in federal and private student loan debt.
On July 11, 2019 the President of the American Federation of Teachers, AFL-CIO filed a lawsuit against the U.S. Department of Education (ED) for gross mismanagement of the Public Service Loan Forgiveness (PSLF) and Temporary Expanded Public Service Loan Forgiveness (EPSLF) programs.
In this article, we’ll explain why getting a home equity to pay back taxes can be a great alternative to an IRS streamlined payment plan.
If there is a federal tax lien on your home, you may have trouble getting a loan.
A common misconception is that federal taxes cannot be discharged through bankruptcy. A Chapter 7 filing can be a very powerful tool in obtaining relief for past due taxes.
A petition filed under Chapter 7 of the Bankruptcy Code is used to discharge debt through liquidation of assets. However, exempt and excluded assets are retained by the debtor. Examples of exempt assets include your homestead up to 1 acre, personal property ($30-60K), life insurance, pensions for state and local employees, tools of trade, earned but unpaid wages, and unpaid commissions up to 75%.
Taxpayers who have no ability to make monthly payments towards their tax debt can request that the IRS place their account in currently not collectible (CNC) status.
While a taxpayer’s account is placed as currently not collectible, the IRS will not levy or attempt to collect the debt. Taxpayers who are are temporarily out of work are good candidates for currently not collectible.
In a recent tax forum, the IRS stated that they are drafting a new Letter 6152 that will be sent to taxpayers who haven’t settled their tax debt. The letter will warn such taxpayers that their passport will be revoked.
The authority to revoke passports for “seriously delinquent tax debt” is provided under Internal Revenue Code § 7345.
This article discusses what an IRS levy is and how to stop an IRS levy.
A federal tax lien encumbers a taxpayer’s property. It is filed with the county clerk and is intended to provide notice to 3rd parties (such as creditors) that the IRS has a secured interest.