Tax Court Says Spouse Was Not So Innocent

tax relief help, tax debt relief, tax relief, student loan consolidation, Covid-19 tax relief

In Constance H. Briley v. Commissioner of Internal Revenue, docket number 7782-17 (T.C. Memo. 2019-55), the Tax Court denied innocent spouse relief to a Virginia woman, who the court said had reason to know of an error on her joint tax returns.

Findings of Fact

Constance H. Briley married Mr. Briley in 1988. They were married during the years involved; and although they separated in 2013, they remained married as of the date of trial.

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Former IRS Employee is Convicted of Tax Evasion

tax evasion

On May 14, 2019, a federal jury in Las Vegas, Nevada, convicted Craig P. Orrock, a former attorney and former Internal Revenue Service (IRS) employee, of tax evasion and obstructing the internal revenue laws.

According to court documents and evidence presented at trial, starting in the early 1990s, Orrock, evaded the payment of his federal income taxes and obstructed IRS efforts to collect those taxes. Specifically, it was alleged that Orrock claimed false theft loss deductions, filed false amended tax returns, and filed a false offer in compromise with the IRS.

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Innocent spouse relief: Are you responsible for your spouse’s tax mistakes?

IRS Penalties, innocent spouse relief, seriously delinquent tax debt

When married taxpayers sign a joint return, they are jointly and severally liable for the taxes owed on the return.

Oftentimes a spouse will fail to report income or claim improper deductions or credits, without the other spouse knowing. In such cases, it might be grossly unfair to hold the innocent spouse liable for the other spouse’s mistakes.

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Where’s my IRS Refund?!

Offer in compromise, IRS refund, pay federal estimated taxes online, Cloverdell ESA vs. 529 Plan, farm deductions hobby loss

It’s that time of the year. We’ve just finished sending in our tax returns and doing our happy refund dances.

We sit patiently for that crisp, green refund check – thinking of all the things we can do with it. A week becomes two, and then a month.

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IRS Payment Plan

IRS Penalties, innocent spouse relief, seriously delinquent tax debt

The most common way to resolve tax debt issues by entering into a payment plan with the IRS. There are several types of payment plans. 1 Do you qualify for a payment plan?2 Guaranteed and Streamlined Installment Agreements3 Non-streamlined and partial payment installment agreements4 How does the IRS complete a financial analysis?4.1 You should always … Read more

How to Settle IRS Debt

Offer in compromise, IRS refund, pay federal estimated taxes online, Cloverdell ESA vs. 529 Plan, farm deductions hobby loss

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less than the full amount owed. Here is an overview of the process. 1 Step 1: Determine if you are Current on your Tax Obligations2 Step 2: Obtain a copy of your … Read more

The Five Biggest Mistakes Made When Filing an Offer-in-Compromise!

tax relief help, tax debt relief, tax relief, student loan consolidation, Covid-19 tax relief

The Internal Revenue Service’s (“IRS”) Offer-in-Compromise program continues to be one of the most popular programs with both practitioners and taxpayers when they are considering a way to resolve their back tax issue.  Yet, only 42% of Offers filed by taxpayers are ultimately accepted.  Why are less than half of the Offers filed being accepted? Read more about common offer in compromise mistakes.

Mistake #1: Not Checking the Statute of Limitations

There is a ten-year collection statute.  What this means is the IRS has ten years from the date it assesses the tax liability to collect that tax.  Easy enough.  However, taxpayers often do things that may toll or freeze the statute, preventing it from running.  These actions include anything that prevents the IRS from taking collection action, including:

  • Filing an Offer-in-Compromise
  • Filing bankruptcy
  • Filing a request for an installment agreement (payment plan)

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Former IRS Revenue Officer Sentenced for Tax Evasion

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Former IRS Revenue Officer Sentenced for Tax Evasion

In an ironic twist, a former IRS revenue officer was recently sentenced to prison for tax evasion and impeding the due administration of internal revenue laws.

From 1989 to 2014, Mr. Henti Lucian Baird operated a tax preparation and consulting businesses under d/b/a “HL Baird’s Tax Consultants.” Previously Baird had worked as an IRS revenue officer for 12 years. Although he filed his tax returns every year,  he failed to pay his taxes since 1998 and used his knowledge and experience as a revenue officer to evade paying taxes.

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IRS Tax Liens

IRS tax lien, bankruptcy and taxes, home equity loan back taxes

Anyone who has been in trouble with IRS tax debt probably has some experience with a federal tax lien. Learn about what an IRS tax lien is, how it’s filed, and what you can do to get it released. 1 How a Federal Tax Lien is Created2 Filing of a Federal Tax Lien3 Relief from a Federal … Read more

Guide to IRS Penalties

IRS Penalties, innocent spouse relief, seriously delinquent tax debt

Guide to IRS Penalties

There are many different types of penalties that the IRS can impose on individual and business taxpayers. Here are some of the more common IRS penalties.

Failure to File and Failure to Pay Penalty

Legal Authority

Legal authority for the IRS to assess penalties for failure to file and/or pay are provided by:

  1. IRC 6651 – provides for additions to tax for failure to file returns required to be filed to report tax, and for failure to pay tax required to be reported on those returns
  2. IRC 6698 provides for a penalty for failure to file a complete partnership return as required under IRC 6031.
  3. IRC 6699 provides for a penalty for failure to file a S-corporation return as required by IRC 6037.
  4. The penalty for failure to make required payments under IRC 7519(f)(4)(A).

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