Marriage presents a number of difficult tax questions. One question is whether both spouses can be held liable when they file separately and one spouse fails to pay their taxes. This is a common marriage tax question that we are asked. One might think that the married filing separate status fully protects the other spouse.… Continue reading Married Filing Separate Spouse Liable for Tax
Category: Tax Procedure
IRS Levy While Tax Litigation is Pending
If you owe back taxes and are litigating the case with the IRS, what happens if you come into money? The IRS has broad levy powers. Can the IRS get the money even though the taxes are being disputed in court? The answer can vary based on whether the underlying tax liability is being disputed… Continue reading IRS Levy While Tax Litigation is Pending
When Withdrawing IRS Tax Lien Facilitates Collection
The IRS’s collection efforts can impact different taxpayers differently. While the IRS has broad collection powers, there are some taxpayers who are largely immune from the IRS’s collection efforts. This varied impact is partly due to the range of collection tools Congress has provided to the IRS. The IRS lien notice provides an example. Many… Continue reading When Withdrawing IRS Tax Lien Facilitates Collection
The IRS “Effective Tax Administration” Settlement
Life has a way of getting in the way. Whether it is a health issue, a financial setback, or some other circumstance. The IRS often finds itself having to contend with these situations experienced by taxpayers. This often comes up when there are back taxes. Or when the life issue results in back taxes. Taxpayers… Continue reading The IRS “Effective Tax Administration” Settlement
IRS Offer In Compromise: The Deemed Acceptance Rules
The IRS has missed just about every deadline in the past few years. Most of the IRS’s employees have basically been on paid vacation for the past few years. When Covid-19 first emerged, IRS employees were sent home. They were paid not to work. While private-sector employees scrambled to find ways to work, many IRS… Continue reading IRS Offer In Compromise: The Deemed Acceptance Rules
Contesting the IRS’s Passport Certification for Back Taxes
The IRS has a lot of tools available to help it collect unpaid taxes. This includes liens, levies, and even seizing property. Congress added the ability for the IRS to certify passports for those who owe back taxes and have refused to pay. Congress provided a judicial remedy for erroneous certifications. There have not been… Continue reading Contesting the IRS’s Passport Certification for Back Taxes
Tax Return “Filed” When Provided to IRS Employee
Since tax returns are a central part of our system of tax administration, one would think that the IRS is an expert at handling tax returns. It isn’t. The IRS often loses tax returns. It often checks returns into its systems and then fails to process the tax returns and cannot locate the actual tax… Continue reading Tax Return “Filed” When Provided to IRS Employee
The Injunction for Tax Return Preparers
The government often has a myriad of remedies available to it. There are common situations in which the government does not have a consistent and thoughtful process for organizing how and when it will pursue the various remedies. This ad hoc method often results in outcomes that are not tailored to achieve the government’s aims… Continue reading The Injunction for Tax Return Preparers
Double Tax on Inter-Company Transfers
There are those who make things happen. They are usually the ones doing what it takes even when doing so is difficult, tiring, and draining. They are the ones that often make personal sacrifices and take risks to succeed. They are the ones that had the luck or grit to stick with something to see… Continue reading Double Tax on Inter-Company Transfers
Common Law Mailbox Rule Fails (Again)
In legal disputes, there are times when parties make representations that are not true. That includes the IRS and its auditors and attorneys. If the taxpayer is lucky, they will have direct evidence that shows that the representation is false. There are situations where the law does not allow that evidence to be considered. There… Continue reading Common Law Mailbox Rule Fails (Again)