You just received a notice from the IRS that you’re being audited. I’m sorry: it’s a stressful experience. But, now that you’re in it, here are the most important things to keep in mind. Read more>>
Taxes
Tales from the IRS Tax Troll Trenches, Pt. 4
There’s no shortage of bureaucratic bungling and ineptitude by the IRS. My problem isn’t coming up with stupidities from the IRS, it’s choosing which one to feature because the Tax Trolls are so busy coming up with hijinks and shenanigans. Read more>>
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>>
Were Comey & McCabe IRS Audits Politically-Motivated? Unlikely
I was a tax attorney at the IRS for a decade. So you know I’ve been all over the fascinating story that the IRS recently subjected former FBI Directors James Comey and Andrew McCabe to its most invasive NRP audit. Comey and McCabe were famously fired and publicly abused by former President Trump. Suspicious minds now wonder whether IRS Commissioner Charles Rettig, a Trump appointee, ordered the audits on these two men as a form of political retribution. Very unlikely. Here’s why.Read more>>
Hard to Get Innocent Spouse Relief from IRS
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>>
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 »
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 »
How the DOJ Can Mess Up Getting Rid of Tax Debt in Bankruptcy
Tax debt is dischargeable in bankruptcy. However, unlike many other nondischargeable debts (fraud, malicious tort, etc.), tax debt may actually remain in force with no further word from the court. Huh? The IRS or the FTB could come back five years after the discharge and start collecting on taxes Read more »