How much IRS debt is uncollectible?

The IRS Taxpayer Advocate, Nina Olsen, reported in her recent testimony to the House Ways and Means Committee that the IRS classified nearly $20 billion in tax debt as “currently not collectible” in 2008.   This is more than the amount the IRS collected on taxpayer delinquent accounts, including installment agreements and offers in compromise [...]

Collection of IRS withholding taxes against business owners and managers

The IRS takes the decision to use employee tax withholdings to pay business operating expenses rather than the IRS quite seriously.  The owners and managers of the business who make these decisions will find the IRS coming not only to the business, but to them, to recover a portion of the withholdings.  
This is an [...]

IRS statute of limitations – without waking the IRS

A client came in today with an older tax liability that appeared to have only two years left on the IRS statute of limitations on collection.  The client had not heard from the IRS in years.
A statute of limitations is the time the IRS has to do something.  For IRS collection cases, it is the [...]

IRS Commissioner Douglas Shulman on IRS collections during recession

Today IRS Commissoner Douglas Shulman gave an interview on National Public Radio (NPR) about how the IRS will be dealing with hardship cases during these difficult economic times.
Shulman did not addresss what is really holding up IRS collections – an offer in compromise system that accepts only 25% of the offers it receives.  The IRS collection guidelines [...]

Your budget vs. IRS expense allowances – How do you compare?

In determining whether you can repay a delinquent tax liability, the IRS uses its own expense allowances to arrive at your cash flow.  Just because you have the expense does not mean the IRS will allow it.  
In most cases, your housing/utilities and auto operating expenses will exceed IRS guidelines.  Credit card payments are rarely [...]

IRS bank levy – how safe is my account?

An IRS levy on your bank account can be disastrous – checks not clearing, bank service charges, and concern over paying basic living expenses from the lost funds.  
The good news is that tax law gives you a 21 day window to get the money back into your account before your bank sends it to [...]

What an IRS criminal investigation for tax fraud looks like

With tax season in full bloom, a little reminder to avoid making false or fraudulent claims on your tax return is in order.   
If you want to see what a criminal tax case looks like, the IRS makes it easy – here are the fact patterns and sentencing results of over 50 criminal tax cases [...]