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 »
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 …
What is the Penalty For Underpaying Taxes When Filing? Read More »
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 …
While the Notice of Federal Tax Lien is just a public announcement of what you owe the IRS, the real action happens in the tax levy process where the IRS seizes your real and personal property or assets. Usually, levy notices are given to the financial institutions and employers with whom the tax debtor is …
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 …
General Federal Tax Liens: When They Arise And How They Affect The Taxpayer Read More »
Summary: This is a shortened version of the article What You Should Consider Before Hiring A Tax Attorney on The Sacramento Attorney Blog. In brief, tax attorney fees can be expressed as either a (1) retainer fee and hourly rate or (2) flat fee. Some tax attorneys offer payment plans for their fees, but consider …
Tax attorneys help clients navigate tax disputes and utilize available tax deductions, credits, and exemptions. However, not all tax attorneys do the same thing. Most local tax attorneys focus on tax resolution; or more specifically, help clients resolve tax debt with the IRS and State tax agencies. For instance, tax resolution attorneys will represent clients …
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 »
