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
Category: Tax Procedure
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
IRS Rejects Court Orders, Law and Logic: Modus Operandi or Isolated Case?
Clients often ask me whether the IRS takes steps to slant the facts and law in the governments favor. I often explain that, as with most legal matters, there is really no right or wrong answer until the court makes a final determination and all appeals are exhausted. But when I say this I often… Continue reading IRS Rejects Court Orders, Law and Logic: Modus Operandi or Isolated Case?
Supreme Court Questions U.S. Tax Court’s Rule Violations
The U.S. Tax Court provides a forum for contesting tax assessments and for certain collection matters. It is the only forum that allows taxpayers to maintain litigation without first paying the tax, etc. that is in dispute. For many taxpayers, it is the only forum that is available. This is why it is important for… Continue reading Supreme Court Questions U.S. Tax Court’s Rule Violations
The IRS Should Not be able to Solicit Criminal Information from Non-Lawyer Tax Practitioners
Civil tax cases often turn into criminal tax cases. In those instances the IRS initially investigates the tax crime and then refers the case to the Department of Justice. The IRS efforts to investigate the potential tax crime often require that they obtain information from third parties, such as the taxpayer’s employer, neighbors, and financial… Continue reading The IRS Should Not be able to Solicit Criminal Information from Non-Lawyer Tax Practitioners
Better than a Soap Opera? Trust Fund Tax Disputes
Businesses often succumb to the temptation to use taxes withheld from employees wages to manage cash flow problems. These “government loans” can prove to be quite costly. Hart v. Commissioner, 19120-12 provides an example. Facts & Procedural History The taxpayer worked for a real estate firm. The firm did not pay its payroll taxes. The… Continue reading Better than a Soap Opera? Trust Fund Tax Disputes
Evidence That Can be Considered When Applying the Federal Sentencing Guidelines
The federal criminal sentecing guidelines use a point system. Points or levels are assigned to characteristics of individual crimes and individual criminal offenders. The higher the points or levels the higher the sentence imposed. The system is intended to produce uniform and rational criminal sentences. This policy could be undermined by a limitation in the… Continue reading Evidence That Can be Considered When Applying the Federal Sentencing Guidelines
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
Tax Liability Review by Tax Court Limited
The collection due process hearing law has provided taxpayers with another avenue for challenging their underlying tax liabilities. With this option, taxpayers can let the IRS assess the additional tax or penalties and then wait for the IRS to attempt enforced collection for the balance. They can then file a collection due process hearing request… Continue reading Tax Liability Review by Tax Court Limited