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Challenging the Merits of an IRS Tax Assessment in a CDP Hearing 

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 …

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Signature Under Duress: Avoiding Joint and Several Liability for Tax Debt 

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 …

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What is the Penalty For Underpaying Taxes When Filing?

Preparing a tax return can be nerve-wracking process. You give a tax preparer your information, they input the data and ask some questions, and the software tallies your total tax bill. Sometimes that amount is larger than you can afford, and you can only partially pay the amount owed when filing your tax return. When …

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When Is the Accuracy-Related Penalty Imposed?

The IRS imposes the accuracy-related penalty when the taxpayer’s underpayment of federal taxes is due to a substantial understatement of income tax, negligence, or other errors in the tax return. The civil tax penalty is 20% of the underpayment. The main reason for implementing an accuracy-related penalty is to encourage the accurate payment and filing of …

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General Federal Tax Liens: When They Arise, What Happens, And How They Affect The Taxpayer

A lien is a charge or claim against a property for the payment of a debt. A creditor’s lien does not, by itself, transfer property ownership to the creditor. There must be a levy or seizure first to force a sale. What Is A Tax Lien ? When it comes to the government’s claim or charge …

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