IRS Suspends Some Tax Due and Unfiled Return Notices Due to Backlog

IRS notice of deficiency, audit reconsideration

Have you received a letter from the IRS stating that you owe taxes even though you paid it? Or that you have an unfiled return even though you’ve filed it? You’re not alone. The IRS says it is aware of the problem and is assisting taxpayers by suspending certain automated notices. The IRS is entering … Read more

What happens if you don’t pay your taxes?

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

It’s hard to think of anything more stressful than dealing with IRS collections. If a taxpayer is unable to pay or make arrangements, what follows is a series of enforcement actions by the computerized notice system, automated collections system, and sometimes an IRS Revenue Officer knocking at their door. Computerized notices and automated collections system … Read more

IRS Announces The People First Initiative for COVID-19 Hardships

Internal Revenue Service Phone Number, IRS Audit, People First Initiative

The IRS recently announced The People First Initiative to provide compliance relief to taxpayers experiencing COVID-19 related hardships. It released a FAQ to address how taxpayers undergoing audits or have collections and other issues can proceed. Here’s how it impacts you. If you owe back taxes IRS is not forgiving tax debts and balances will continue … Read more

IRS Improperly Issued Levies on Hundreds of Taxpayers, says TIGTA

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

The Treasury Inspector General for Tax Administration (TIGTA) in its recent report found that the IRS may have improperly issued levies on hundreds of taxpayers, What TIGTA investigated The IRS must notify taxpayers and their authorized representatives of the right to a CDP hearing prior to issuing levies and to suspend levy action during the … Read more

Tax Court Denies Innocent Spouse Relief for Texas Woman

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

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. Background Taxpayer was born in 1944. She … Read more

Tax Court Upholds IRS Levy Against Arizona Woman

tax attorney near me. tax lawyer near me, IRS attorney near me

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. Taxpayer’s unpaid tax liabilities … Read more

Bankruptcy & Taxes: Discharging Tax Debt Under Chapter 7

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

Discharging Tax Debt Under Chapter 7

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.

What is Chapter 7 Bankruptcy?

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%.

Read more

How to get Currently Not Collectible Status from the IRS

IRS currently not collectible

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.

Read more