I think that most citizens would agree that the IRS should not benefit from failing to do its job in a timely manner. The recent United States v. Ryals case provides an example of how the IRS can benefit from denying taxpayer claims and delaying the collection of taxes. Ryals Case Ryals owed taxes for… Continue reading IRS Incentive to Delay Processing Cases: Extra Tax Penalties & Interest
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 IRS Tax Lien Regulations Issued
The dreaded IRS tax lien. Once filed, it can wreak havoc on credit scores. It can call into question occupational licenses. Worse yet, it triggers a flood of mail and phone calls from tax resolution companies hawking their services. About Liens and IRS Liens A tax lien is a claim to property. Think of it… Continue reading New IRS Tax Lien Regulations Issued
IRS Interest on Employment Taxes Can be Problematic
Interest imposed by the IRS on tax debts can be problematic, as is highlighted by the recent Scanlon White, Inc. v. Commissioner case. Scanlon White Case In Scanlon White, the IRS took four years to deny the taxpayer’s offer in compromise for its unpaid employment tax liability. The taxpayer requested that the IRS abate the… Continue reading IRS Interest on Employment Taxes Can be Problematic
Taxpayers Cannot Record IRS Telephone Interviews in CDP Hearings
Sometimes it is nice to have a record of what transpired. This is true even if the recording is never used. Just the fact that the recording is being made, and everyone is aware that it is being made, can change the tone and substance of the meeting. The law allows taxpayers to record meetings… Continue reading Taxpayers Cannot Record IRS Telephone Interviews in CDP Hearings
IRS “Its All or Nothing” Stance Often Helps Taxpayers
It can be difficult to determine if a person is an employee or an independent contractor. The Rabinowitz v. Commissioner case highlights the difficulties that taxpayers face in making this distinction. Facts & Procedural History Rabinowitz is an insurance salesman. Rabinowitz asked the IRS and, upon IRS refusal, the U.S. Tax Court to lift a… Continue reading IRS “Its All or Nothing” Stance Often Helps Taxpayers
Tax Resolution Firm Job Posting: The Industry Needs to be Regulated….
I thought that I would share with you this Craigslist post that one of my clients forwarded to me: TAX RESOLUTION ASSOCIATES ——————————————————————————– Tax resolution associates wanted for Boulder financial company. ATTENTION: YOU DO NOT HAVE TO HIT A $25k OR $30k FOR BONUS!!!!!!!!!!!We pay 15% at $15k, 20% at $20k and 25% at $25k.… Continue reading Tax Resolution Firm Job Posting: The Industry Needs to be Regulated….
Ex-Spouse’s Defense for Tax Discharged in Bankruptcy
What if an ex-spouse who is jointly liable for the tax waits until after the other ex-spouse’s bankruptcy discharge and argues that the taxes were not discharged in bankruptcy as the tax return was invalid? The court addressed this in Kuhl v. United States, No.?05-6570-BK (2nd. Cir. 2006). Facts & Procedural History Ms. Kuhl owed the IRS… Continue reading Ex-Spouse’s Defense for Tax Discharged in Bankruptcy
Increased Fees for IRS Tax Installment Agreements
The IRS recently reviewed the government cost of processing IRS tax payment installment agreements, which has resulted in the IRS proposing to increase the costs for filing IRS installment agreements. The IRS tax payment installment agreement is one of the remedies of last resort to taxpayers who have outstanding tax liabilities. There are a number… Continue reading Increased Fees for IRS Tax Installment Agreements
IRS Private Tax Debt Collection Agencies
The IRS spends a considerable amount of time and money trying to collect unpaid tax debts. There has been some thought that private collectors would have better results. Congress recently enacted Section 6306 to allow the IRS to assign certain delinquent tax accounts to private collection agencies. The new law and how it is implemented… Continue reading IRS Private Tax Debt Collection Agencies
The IRS Announces an Online Tax Payment Agreement System
The IRS recently announced that it will be launching a system to allow “tax professionals” to apply online for tax payment agreements or tax installment agreements for their clients. IRS Online Pro’s & Cons While this is a step in the right direction, it does present yet another opportunity to consider whether the IRS should… Continue reading The IRS Announces an Online Tax Payment Agreement System