About IRS tax penalties, interest, and procedures.
Winning your properties and assets back after the Internal Revenue Service seized the items is going to be a tough game. If the agency levied your bank accounts and liquid assets, prepare yourself because it might become impossible to get any of the money back. If the IRS collected your vehicle or business tools, these …
Can You Get Your Property Back After An IRS Tax Levy? Read More »
There are several different situations in which a taxpayer may request innocent spouse relief. One of these is the formal administrative process, which is commenced by filing Form 8857, Request for Innocent Spouse Relief. What is IRS Form 8857? Form 8857 is an IRS tax form used by taxpayers to file for relief from a …
When Should a You Use Form 8857 – Request for Innocent Spouse Relief? Read More »
Sometimes you might get saddled with a tax debt that’s beyond your ability to pay. The IRS prefers that you pay your debts in a one-time payment, but there are instances when this just isn’t possible. If you’re facing a large amount of tax debt, you might consider paying it through a payment plan. A …
United States Employers are responsible for withholding federal income and payroll taxes from their employee’s paychecks and remitting those withheld payroll taxes to the government. Otherwise, the employer will be subject to the failure-to-deposit (FTD) penalty of up to 15% or even criminal and civil sanctions for willfully failing to pay employment taxes. The failure …
A taxpayer may request a Collection Due Process (CDP) hearing; however, they must meet the following requirements: Only the taxpayer may request a CDP hearing, which is based only on the first filing of the Notice of Federal Tax Lien (NFTL) or the first issuance of notice of intent to levy for a tax period; The …
IRS Form 12153: Collection Due Process Hearing Request Read More »
Sometimes the IRS makes a mistake. Taxpayers are supposed to receive a notice of deficiency for tax liability before an assessment so they have an opportunity to dispute their tax liability, but sometimes taxpayers simply don’t receive this notice. In that case, the Internal Revenue Code affords those taxpayers an opportunity to challenge the merits …
Challenging the Merits of an IRS Tax Assessment in a CDP Hearing Read More »
Innocent Spouse Relief is available to taxpayers who sign a valid joint tax return. A joint tax return is valid when it was signed voluntarily by both spouses. But what if the taxpayer signed the joint tax return under duress? In that case, the tax return is invalid and cannot be subject to innocent spouse …
Signature Under Duress: Avoiding Joint and Several Liability for Tax Debt Read More »
A property levied by the IRS and seized must be disposed of by sale. After that, the IRS will apply the sale proceeds to the taxpayer’s liabilities in the manner prescribed by the Internal Revenue Code. If you are a taxpayer experiencing a tax levy, just because your property has been sized doesn’t mean that …
IRS Redemption of Real Estate and Personal Property Read More »
When it comes to federal taxes, a creditor-debtor relationship is created between the IRS and the taxpayer. The IRS is a government creditor, and its claim against the taxpayer for unpaid taxes is a form of debt. IRS Debt Collection Debt collection by the Internal Revenue Service is different from that of a general creditor. …
How The IRS Is Different Than Your Typical Creditor Read More »
Whenever a debtor cannot pay a debt, the creditor may secure payment through a claim or charge on the debtor’s property. That claim or charge on a property is called a lien. However, by itself, the lien does not transfer the debtor’s property to the creditor. Rather, the lien gives the creditor the ability to perform …
