IRS Announces The People First Initiative for COVID-19 Hardships

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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

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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

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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

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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

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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%.

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How to get Currently Not Collectible Status from the IRS

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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.

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How to Stop an IRS Levy and Garnishment

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This article discusses what an IRS levy is and how to stop an IRS levy.

IRS levy vs. lien

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.

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Tax Court Upholds IRS’ Collections Action of Tennessee Man’s Debt

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The U.S. Tax Court in Oliveri v. Comm’r, T.C. Memo 2019-57, found that the IRS didn’t abuse its discretion by pursuing collection of a Tennessee man’s tax debt after he failed to pay subsequent tax bills timely.

Issue

Whether or to What Extent Petitioner May Deduct Expenses He Incurred in 2012 Which He Contends Were Related to Evangelization.

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