IRS - Part 4

Why IRS Doesn’t Negotiate Payroll Tax Debt – EVER

IRS, Payroll Taxes, Tax Collection Issues

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 »
November 16, 2021

The Statute of Limitations on IRS & FTB Tax Debt Collection

CA Franchise Tax Board, Collection Law, IRS, Taxes

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 »
October 4, 2021

Discharging Tax Debt in Bankruptcy

Bankruptcy, Bankruptcy Procedure, IRS, Taxes

It’s possible to discharge (have tax debt wiped out) most federal taxes in bankruptcy. There are exceptions, however. Many of the times when taxes aren’t dischargeable in bankruptcy are very straightforward, but one is open to interpretation and thus quite murky. Read more »
September 13, 2021

When Can You DIY an IRS Offer In Compromise?

IRS, Tax Resolution Services, Taxes

The IRS and the FTB don’t negotiate tax debt. Neither agency will write off a dime of tax debt because the taxpayer asks it to. Their missions are to collect taxes owed equally from taxpayer, and to inflict financial pain to do so because there can’t be favoritism in collecting taxes owed. Read more »
August 17, 2021

Tax Protesters Sail on Seas of Fantasy

IRS, Taxes

Is it true that there is no law requiring payment of income tax? After all, many tax protesters assert this. And, in my 10 years as an attorney for the IRS, I came across several particularly colorful protesters, including one who attempted to evade taxes by claiming he was a ship. Seriously. Read more »
August 11, 2021

Got Bad Info From an IRS Agent? Too Bad…the Law Assumes They’re Incompetent. Seriously.

IRS

A client spoke IRS with an IRS revenue officer about his payroll tax issue (before he found me). The revenue officer said not to worry about it, that my client’s matter wasn’t a high priority, and that they thus had time to work things out. But two weeks later the IRS levied on his payroll account, despite what the revenue officer said. Read more »
July 29, 2021

Cheerleading Biden’s Increased IRS Budget Proposal

In the News, IRS, Policy, Taxes in the News

I enthusiastically applaud President Biden’s proposal to increase the IRS’s budget by $1.2 billion, or more than 10 percent over this year’s budget. In fact, call me a huge cheerleader for this proposal. Read more »
June 24, 2021

IRS’ Right to Take Your Passport

IRS, Tax Collection Issues, Taxes

Congress granted the IRS the power to revoke passports in December 2015. Under this law, if you owe more than $51,000 to the IRS, then you could lose your passport. Read more »
June 9, 2021

The IRS Can (Almost) NEVER Waive Interest on Late Taxes

IRS, Tax Collection Issues, Taxes

A business-owner client recently claimed an R&D tax credit available to him. The IRS denied his use of the credit, he hired me, we went to Tax Court and ultimately won most of the issues. My client wound up owing something, just much less than what the IRS originally asserted. That made my client happy. Read more »
May 26, 2021

IRS Processing Times Still Covid-Slow

Did You Know?, IRS

It’s late April. More than 13 months into the pandemic. Almost 40% of Americans have received at least one Covid vaccine. So, you’d think IRS processing times – which slowed to a virtual crawl when the pandemic hit – would be starting to improve, right? Guess again. Read more >>
April 26, 2021

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