There is a difference between making a payment and a deposit when you pay the IRS. Blom v. United States, a recent case in the Federal District Court of Pennsylvania, highlights the difference between an IRS tax deposit and an IRS tax payment. Facts & Procedural History Blom’s aunt died and named Blom as the… Continue reading Deposits vs. Payments: A Distinction Taxpayers Must Understand Before Making Payments to the IRS
Category: IRS Debts
About IRS Debts & Unpaid Taxes
The IRS is authorized to collect unpaid tax debts. It has tools at its disposal to do so.
If you need to know more about the IRS’s collection function, you can read about the IRS collection function here. If you want to know more about how the IRS goes about collecting unpaid taxes, you can read about the tax collection options here.
This page covers recent cases, rulings, and guidance for IRS debts and collections. Scroll down to read the articles.
If you need help dealing with a tax debt or IRS collection matter, please schedule an appointment with our tax attorneys online. You can also call us at (713) 909-4906.
New Offer in Compromise Legislation
As discussed in a previous post, Congress has been toying with making changes to the IRS offer-in-compromise program. These changes were included in the “Tax Increase Prevention and Reconciliation Act”, which was signed by President Bush on May 17th. New Changes – Offer In Compromise As such, offers in compromise filed after the magic date,… Continue reading New Offer in Compromise Legislation
Prisoner Entitled to Collection Due Process Hearing
There are quite a few rights taxpayers have, that are disregarded by the IRS, and there is no remedy when it happens. As noted in Butti v. Commissioner, TC Memo. 2008-82, the IRS collection due process hearing is not one of those circumstances. The Facts & Procedural History Butti is a former chiropractor that is serving… Continue reading Prisoner Entitled to Collection Due Process Hearing
Can the IRS be Friendlier and More Efficient at the Same Time?
The Treasury has been working on stepping up its exam and collections efforts. As a result the IRS appears to be moving back its pre-Revenue Restructuring Act (RRA) of 1998 posture, which was enacted as a result of numerous IRS abuses. Yet, the IRS is still bound by the RRA. Are We Asking Too Much… Continue reading Can the IRS be Friendlier and More Efficient at the Same Time?
The Bankruptcy Abuse Prevention and Consumer Protection Act
For the most part the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 comes into full force on October 17, 2005. The Act contains a number of tax-related provisions, almost all of which are controversial. I will focus on a few of the tax-related provisions. The Bankruptcy Code & How It Works The Bankruptcy… Continue reading The Bankruptcy Abuse Prevention and Consumer Protection Act
Audit Reveals Deficiencies in IRS Procedures
In the Revenue Restructuring Act of 1998, Congress provided that taxpayers were to be provided a hearing before the IRS filed a lien or levy on taxpayer property. If filed timely, this involves a collection due process (CDP) hearing; if not filed timely, this involves an equivalency hearing. Typically both hearings are held before the… Continue reading Audit Reveals Deficiencies in IRS Procedures
IRS Says Taxpayer’s Payments Were Too High
If the taxpayer submits an installment agreement request that full pays the liability, can the IRS reject the request as the payment amount is too high? The court addresses this in Lites v. Commissioner, T.C. Memo. 2005-206. Facts & Procedural History The taxpayers were a husband and wife. The taxpayer-husband was a financial products salesman… Continue reading IRS Says Taxpayer’s Payments Were Too High
IRS Disclosure of Confidential Information
The IRS is prohibited from disclosing taxpayer information to third parties. There are a number of exceptions. But when the laws are violated, the courts can and do award damages to taxpayers. The Ward v. United States, 973 F. Supp. 996 (Dist. Colo. 1997) court case provides a prime example. Facts & Procedural History The taxpayer owned… Continue reading IRS Disclosure of Confidential Information
Congress Proposes Changes to the IRS Offer in Compromise Program
The Offer in Compromise (OIC) has proven to be an invaluable tool for taxpayers to resolve tax disputes with the IRS. OICs have allowed taxpayers to come into compliance with our tax laws and they have also allowed the government to collect tax liabilities that would otherwise go uncollected. Yet, Congress has taken a notion… Continue reading Congress Proposes Changes to the IRS Offer in Compromise Program
The Three Offer in Compromise Options
The IRS offer in compromise program is one avenue for settling tax debts for less than the amount owed. There are three different types of offers that can be submitted under this program. The court in Eberhardt v. Commissioner, T.C. Summary 2004-147, addressed each one. The case provides a good overview of how the IRS… Continue reading The Three Offer in Compromise Options