The IRS Office of Appeals provides a great forum for resolving IRS tax disputes. While appeals settles a lot of cases, it doesn’t settle them all. This is where the IRS arbitration program comes in. It is for those close cases that almost settled, but didn’t. The IRS recently released Revenue Procedure 2006-44, which sets out…
Tax Articles
How is the Tax Resolution Industry Regulated?
The tax resolution industry is largely unregulated. There is, however, a patchwork of laws that provides some oversight. This includes Circular 230, which sets forth ethical and professional standards that tax practitioners, including tax resolution companies, must follow when representing clients before the IRS. Additionally, tax resolution companies must comply with the Fair Debt Collection…
Comparison: U.S. and France’s Approach to Small Business Taxes
In recent years, governments worldwide have been exploring new ways to address tax-related issues. For example, the French government, which reported a budget deficit of approximately 3% of its GDP, has proposed using the surplus tax revenues to exempt minimum wage employees working for small businesses from payroll taxes. This approach contrasts with the United…
Interest Abatement: What is a Ministerial Act?
Imagine that the IRS did not act quickly. Okay, that isn’t hard to imagine. The IRS never acts quickly. I’ll rephrase that. When the IRS goes slow in processing even the most basic request or inquiry, what happens? Does this stop the accrual of interest? The answer is, unfortunately, “no” it does not–in most cases.…
Navigating the Deductibility of Investment Advisory Fees for Trusts
The tax treatment of investment advisory fees paid by trusts has become a hotly debated topic in recent years. The conflicting decisions of various circuit courts of appeals have led to discrepancies in tax treatment across different jurisdictions. While some courts have ruled that investment advisory fees paid by trusts are subject to the same…
Tax Attorney Contests IRS Bypass Letter
A taxpayer is entitled to hire a licensed attorney, CPA, or enrolled agent to represent them before the IRS. The taxpayer has a fundamental right to choose their tax advisor. The IRS generally has to accept this choice and work with the tax advisor. The IRS cannot simply ignore the tax advisor. Even to communicate…
What to Do When the IRS Refuses to Recognize a Bankruptcy Discharge
What happens if the IRS fails to recognize a bankruptcy discharge for taxes? What can taxpayers do if the IRS violates the law in trying to collect a discharged tax debt? These are important questions that have a significant impact on taxpayers’ rights and financial well-being. Fortunately, there is a remedy. In the recent case…
Compensatory Damages May Not be Taxable
The tax code is an intricate and complex framework that governs the collection of taxes in the United States. While numerous provisions have been contested in courts, it is quite rare for a provision to be deemed unconstitutional, particularly for a tax code section that has already undergone substantial litigation. In the landmark case of…
Increased Fees for IRS Tax Installment Agreements
The IRS recently reviewed the government cost of processing IRS tax payment installment agreements, which has resulted in the IRS proposing to increase the costs for filing IRS installment agreements. The IRS tax payment installment agreement is one of the remedies of last resort for taxpayers who have outstanding tax liabilities. There are a number…
The IRS’s “Last Known Address” Rule
The Internal Revenue Service (“IRS”) plays a crucial role in the collection and enforcement of tax laws in the United States. In order to keep taxpayers informed of important events and meet legal requirements, the IRS frequently communicates with them via mail. The IRS LOVES letters. However, many taxpayers are unaware that the IRS is…