IRS Law Blog

It makes sense on the surface:  You are unemployed, owe the IRS money, and are considering an offer in compromise to settle your tax debt. Before you jump in, it is important to know that...

If you money to the IRS, you have taxpayer rights. Your rights are in the the Internal Revenue Code, which has laws that limit the power of the IRS collection division to collect, levy and destroy....

When the IRS levies your wages or accounts, it is usually to get your attention. There is something the IRS wants that you have not provided – it could be a financial statement, estimated tax...

A currently not collectible status protects you from the IRS, stopping levies, threatening letters and collection enforcement.  It forces the IRS to simply leave you alone without requiring any payment on your end. The IRS...

Owing money to the IRS comes with fear – fear of losing your house, your property, your bank accounts, even going to jail.  And the fear of your employer finding out you have a tax...

It can be overwhelming when the IRS demands payment, considering the power the IRS has to levy your wages, bank accounts, house, and business.  When you have an IRS problem, it is natural – and...

There are many options to resolve an unpaid tax liability – you can agree with the IRS to make monthly installment payments, reach a settlement with an offer in compromise, eliminate the taxes in bankruptcy,...

The time I spend helping my clients results in relationships that allows me to get to know them better.  I enjoy learning about my clients – many are small business owners, including everything from restaurateurs...

My response to a reader’s question about what happens to your bank account after the IRS hits it with a levy. The IRS has levied my bank account and there was not enough funds to...

The trust fund recovery penalty can cause financial havoc for anyone involved in a business that did not pay over its employee withholdings to the IRS.  Internal Revenue Code Section 6672 allows the IRS to...

I received a great question from a reader about whether Veteran’s disability benefits should be included in the value of an IRS installment agreement or offer in compromise. Although the question is directed to Veterans’ disability...

I was recently interviewed by a journalist for a story about the hardships of having the IRS levy a retiree’s social security benefits. The reporter, who is courteous and professional, would like to speak to anyone who has...

When negotiating a resolution to a tax problem, expect the IRS to ask for verification of your living expenses.  After verification, the IRS will likely match the amount you spend to their tables of allowances....

A reader asks the following regarding IRS levies on social security benefits: What is the difference between an automated federal levy on social security and a manual tax levy, and why does the IRS choose...

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.  ...

If you cannot pay your delinquent taxes because of an economic hardship, the IRS can suspend collection efforts against you.  This does not mean your debt is forgiven; just that the IRS will defer collection...

I have seen an increase in calls to my office from retirees who have received an IRS levy on their Social Security benefits.  In most every case, the levy (1) relates to conduct from self-employment...