A newly divorced woman comes to me in shock: in the divorce settlement, her husband accepted all responsibility for the $400,000 in taxes they owed, but the IRS is now threatening to levy on her meager bank accounts. What’s up? Read more>>
IRS
Tales from the Tax Troll Trenches, Ch. 3
Regular readers know I occasionally post stories about the IRS and California Tax Agency’s more absurd shenanigans. Unfortunately, I see a LOT of shenanigans. Here are two recent Tales from the Tax Troll Trenches Read more »
IRS Penalties & How To Get Rid Of Them
There are many obligations taxpayers have which, if not done or not done on time, are subject to penalties and fines from the IRS. These obligations range from the obvious, Read more »
Wall Street Journal Agrees with Me: IRS Needs More $!
Readers of my blog know I frequently berate Congress for having cut the IRS’ budget while dramatically increasing its workload in the past decade. But here’s the politically conservative Wall Street Journal, letting us know how the IRS’s woes are encouraging tax evasion. Read more »
2021 Was Horrible for IRS Responsiveness: 2022 Will Be Worse
The IRS’s 2021 responsiveness has been rightfully panned . Due to budget constraints, Covid work restrictions for IRS employees, and a huge work increase from administering much of the Economic Recovery Read more »
Tales From the Tax Troll Trenches: 3 Years to Assign Revenue Officer
Readers of my blog know I like to unload on the IRS occasionally. Here’s another story from the Tax Troll Trenches Read more »
What Happens to Tax Liens In Bankruptcy?
Debtor’s often have Notice of Federal Tax Lien outstanding at the time they file bankruptcy. How are these handled? Broadly, a properly-noticed lien survives bankruptcy. It continues to attach to any property Read more »
Why You Should Give IRS As Much Documentation As Possible
There are hundreds of strategies for handling IRS issues. But not all strategies are as effective as others.
A car-repair owner got audited and brought his tax-return preparer (Jim) to handle the audit. The preparer said to give the IRS as little information as possible . “The IRS won’t want to go to trial, and they’ll cave in at the last minute,” he said. But something didn’t seem right Read more »
Why IRS Doesn’t Negotiate Payroll Tax Debt – EVER
Business owners with payroll tax debt often ask me why the IRS won’t lift its levy or lien. After all, these clients argue, I just need a bit of free cash to invest back into my business, to make the money to pay what I owe. If the IRS cripples my business with liens or levies, then I can’t make the money to repay them. So, why doesn’t the IRS act more like my business partner, let me continue to operate, and make the money to pay them back Read more »
The Statute of Limitations on IRS & FTB Tax Debt Collection
A potential client called me last week for help in dealing with the IRS. He owes taxes for 1992 to 1996. Had he filed the returns on time? Yes. Had he filed bankruptcy in the meantime? No. Had he filed an offer in compromise? No. Has he heard anything from the IRS in the last three years? No, but he thought that was because he had moved Read more »