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.
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.
Whether or to What Extent Petitioner May Deduct Expenses He Incurred in 2012 Which He Contends Were Related to Evangelization.
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.
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.
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 … Read more
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. Do you qualify for a payment plan? The IRS will consider an installment agreement only if a taxpayer is current on his tax liabilities, which means that the taxpayer: has … Read more
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. However, few taxpayers are good candidates for offer in compromise. To learn why, read on. Step 1: Determine if you are Current on your Tax Obligations … Read more
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.
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:
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. How a Federal Tax Lien is Created After the IRS makes a tax assessment (when you file … Read more
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.
Legal authority for the IRS to assess penalties for failure to file and/or pay are provided by:
A common misconception is that you cannot discharge federal tax debt in Chapter 7 bankruptcy. In fact you can both discharge some of your tax debts under Chapter 7 Bankruptcy, as well as settle your debts with an Offer in Compromise.
Tax debt is dischargeable in Chapter 7 bankruptcy if they meet specific requirements under the Bankruptcy Code. These requirements are often called the 3-year, 2-year, and 240-day rules.