Tag: Public economics

The IRS appears to be human, and it makes legal and administrative errors when seizing property, says the Treasury Inspector General for Tax Administration (TIGTA). TIGTA just completed a review of 50 IRS property seizures...

A common problem with IRS audits is not seeing eye to eye with the auditor. The auditor sees the case narrowly, while you see the big picture.  You know you incurred that expense or did...

I received this question about using an offer in compromise on interest and penalties: I owe $25,000 in tax, but the interest and penalties have made the amount I owe almost double.  Won’t the IRS...

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.  ...

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...

With tax season in full bloom, a little reminder to avoid making false or fraudulent claims on your tax return is in order. A primary purpose of criminal investigations is to protect the integrity of...

The IRS has updated its handbook on Collection Due Process appeals (Chief Counsel Notice 2009-10). Included in the handbook is internal IRS guidance on issues such as disqualified employment tax levies, levies on single member limited...

After conducting an extensive review of their use of outside private debt collectors, the IRS has decided to eliminate the program in its entirety.  The program lasted for all of 30 months. But the IRS...

In these difficult economic times, repaying the IRS is becoming harder than ever. Installment agreements may be entered into in good faith, but while payments are being made, interest and penalties continue to run. Every...

Here is a reason to always file your tax returns… I just resolved a case where my clients did not file their 2000 and 2001 returns. This resulted in the IRS making an estimate of...

I received this question from a reader about a closed business that owes employment taxes to the IRS, and her personal liability for the taxes: The IRS is trying to collect on employment taxes from...

When negotiating with IRS Revenue Officers, it is important to remember the many enforcement tools they have at their disposal.  These powers include: 1.     Filing a Federal tax lien securing the IRS’s interest...

One rule to follow in bankrupting income taxes is that the liability must be from a return that was due to be filed three years before the bankruptcy is commenced. The key is to be careful...

Entrepreneurs justifiably take great pride in their business.  But this pride often gets in the way of a clear understanding of the risk of continuing to operate into a storm of IRS trouble.  The IRS...

In most cases, the IRS will require the past six years of unfiled tax returns for an account to be considered current.  This is a written directive of the IRS, found in IRS Policy Statement...

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...

In the vast majority of cases, you will not lose any of your stuff to the IRS.  Most clothing and personal household belongings are beyond the scope of the IRS collection power.  Here’s why: Section...