Tax Collection Statute of Limitations

Tax Collection Issues
Tax Collection Statute of Limitations

Both the Internal Revenue Service (IRS) and the California’s Franchise Tax Board (FTB) have Statute of Limitations on tax collections. The Statute of Limitations refers to the period of time during which the IRS and FTB can legally collect taxes, penalties, and interest from a taxpayer. Once the Statute of Limitations clock runs out, then what remains owing on the tax debt is erased. For federal taxes, the IRS’ clock on legal ability to collect taxes is 10 years. For California state taxes, the FTB’s clock is 30 years. But, there are things that stop the clock, thus extending the time the tax agency has to collect the tax liability. Read more »
September 20, 2024

Tax Consequences of Pig Butchering Scams

In the News, Tax Collection Issues
Tax Consequences of Pig Butchering Scams

I am outraged by pig-butchering scams, the contact-intensive fraud executed via fake profiles on social media sites meant to fatten victims, like pigs before slaughter. Victims of this scam have come to me for help dealing with the taxes that are invariably triggered when victims’ cash out retirement and investment accounts. That’s right: victims of pig-butchering scams not only lose retirement savings, investments and real property to scammers, but they also end up owing the IRS and California’s FTB hefty taxes on investment income!  Read more »
August 16, 2024

Is the IRS Audit in Everything Everywhere All at Once Accurate?

Audits, In the News, IRS, Tax Collection Issues, Taxes, Taxes in the News
Is the IRS Audit in Everything Everywhere All at Once Accurate?

Everything Everywhere All at Once won seven Oscars at the 95th Academy Awards including for Best Picture. The movie begins with the havoc unleashed by IRS Agent Deirdre Beaubeirdra (Jamie Lee Curtis won Best Supporting Actress), when she audits the laundromat of Evelyn & Waymond Wang (Michelle Yeoh won Best Actress and Ke Huy Kwan won Best Supporting Actor. But are the audit scenes realistic? Short answer: yes, but mostly no. Here’s how the movie differs from a real-life IRS audit. Read more »
March 13, 2023

How to Request IRS Uncollectible Status in Ventura County

Debt, IRS, Tax Collection Issues
How to Request IRS Uncollectible Status in Ventura County

You owe taxes. But you can’t pay. You’re barely making ends meet with basic living expenses. Especially in high cost-of-living places like Agoura Hills, Thousand Oaks, Oxnard and Ventura. You don’t want to file for bankruptcy, or you don’t qualify (some taxes can be discharged in bankruptcy). If you have few assets and modest income, then ask the IRS for Uncollectible Status. Read more>>
February 1, 2023

IRS Enforcement Priorities: Pursue $900,000 or $9,000?

Tax Collection Issues, Taxes, Taxes in the News
IRS Enforcement Priorities: Pursue $900,000 or $9,000?

The IRS’s enforcement priorities often appear – well – insane. Consider the cases of two current clients: one client owes the IRS $900,000, and the IRS thinks the other client owes $6,000 from a IRA distribution he took the year of the Woolsey Fire. We’re disputing the $6,000: Congress relaxed the rules for people in the disaster zone. Who’s the IRS going after? My client who had to evacuate from his house with the $9,000 tax bill. Huh? Seriously? Read more>>
July 25, 2022

IRS “Uncollectible” Status

IRS, Tax Collection Issues
IRS “Uncollectible” Status

For anyone who owes back taxes to the IRS, obtaining Uncollectible Status is like reaching a Promised Land for Tax Debtors. It means the IRS has decided to temporarily halt any collection actions against the “uncollectible” tax payer because it’s just not worth it. Read more>>
May 24, 2022