The IRS is authorized to abate or remove interest where there is a ministerial act. Okay, so what does that mean? What is a ministerial act? The Beall vs. United States, 170 F. Supp. 2d 709 (E.D. Tex. 2001), case provides an opportunity to consider this question. Facts & Procedural History The Bealls were limited… Continue reading Interest Abatement: What is a Ministerial Act?
Category: Tax Procedure
Texas Tax Attorney Contests IRS Bypass Letter
In People’s Source International, LLC v. United States, the IRS issued an Aurora, Texas tax attorney a bypass letter. A bypass letter is a letter that the IRS sends to a taxpayer when the IRS believes that the taxpayer’s tax attorney has failed to respond to IRS requests. The Texas tax attorney contested the bypass… Continue reading Texas Tax Attorney Contests IRS Bypass Letter
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
The IRS’s “Last Known Address” Rule
The IRS relies on mail to alert taxpayers of important events. It also relies on mail to provide notice that is required by the Code. Given the importance of these alerts and notices, taxpayers are often surprised to find out that there is no requirement that the taxpayer actually receives most IRS notices. The IRS… Continue reading The IRS’s “Last Known Address” Rule
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
State vs. Federal Tax Court Litigation
I often hear criminal attorneys say that they always have a good chance to win state criminal cases, but they are almost never able to win in federal criminal cases. The idea seems to be that federal agencies spend a lot more time and effort preparing and gathering evidence against the accused than do state… Continue reading State vs. Federal Tax Court Litigation
Recent Texas Tax Case is an Example of why Taxpayers Should Hire a Tax Attorney
Taxpayers often ask me why they should hire a tax attorney. My response is always that hiring a tax attorney to review and structure your financial affairs can give you some certainty that things are done right, in many cases it can save you significant amounts of tax and later IRS problems, and it can… Continue reading Recent Texas Tax Case is an Example of why Taxpayers Should Hire a Tax Attorney
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
Deposits vs. Payments: A Distinction Taxpayers Must Understand Before Making Payments to the IRS
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