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Bankruptcy Tax IRS Debts Tax Tax Procedure

IRS Audits for Insolvent Taxpayers

When times are good, we don’t need to worry about the tax loss rules, the net operating loss (“NOL”) rules, or even the bankruptcy tax rules. But these rules are front and center in most tax planning and advice during and after an economic downturn. We saw this with the 2001 dot com bust, the […]

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IRS Debts Tax Procedure

Taxes & Defunct Texas Corporations

Our Federal tax laws often look to state law. Differences in state law can expand or limit the IRS’s ability to assess and collect Federal taxes. In Patrick’s Payroll Services, Inc. v. Commissioner, T.C. Memo. 2020-47, the court considers whether a defunct Michigan corporation can bring suit against the IRS. This case provides an opportunity […]

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IRS Debts IRS Liens & Levies Tax Procedure

Property Rights & IRS Levies: Louisiana’s Usufruct

To determine whether the IRS can levy or take property, one has to consider what property the taxpayer owns. State law dictates what property the taxpayer owns. The property laws in most states are similar, which makes applying Federal tax collection law relatively easy. But then there is Louisiana law. Louisiana law differs in many […]

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IRS Audits IRS Debts Tax Procedure

Can You Rely on IRS Statements?

If you ask someone a direct question and the person responds with incorrect information, is the person bound by their misrepresentation? This raises questions of “estoppel,” which apply to most litigants. But does it apply to IRS employees who make a misrepresentation? Put another way, can you rely on statements by IRS representatives? The court […]

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IRS Debts IRS Liens & Levies Tax Procedure

Fix to Duplicate IRS Address Problem

The IRS sends taxpayers letters and notices from quite a few different IRS offices. As a result, taxpayers are often confused as to what IRS office to respond to. This is particularly true if the IRS letter or notice includes more than one IRS address. The IRS has maintained a harsh stance on taxpayers who […]

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IRS Debts Tax Procedure

Estate Plan Triggers Liability for Unpaid Taxes

Estate planning often involves transferring business interests from one generation to the next.  But what if the parent owes unpaid taxes? Can the children be held liable for the unpaid taxes? What about the surviving spouse? What if they were not aware of the steps taken to avoid paying taxes? The recent United States v […]

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IRS Debts IRS Liens & Levies Tax Procedure

IRS Levy Does Not Attach to Future Payments

The IRS levy is one of the IRS’s primary methods for collecting unpaid taxes. But the levy power is not unlimited. The IRS levy can attach to some amounts held by third parties that are owed to the taxpayer. But it does not attach to future payments. The recent Gold Forever Music Inc. v. United […]