The “Process” of the IRS Appeals Collection Hearing

The government establishes processes to carry out its essential functions. These processes handle a myriad of different types of cases and cases with nuanced fact patterns. These processes allow the government to process a high volume of cases. They often do so in bulk. The process is a like well-trodden path. The path may take…

Married Filing Separate Spouse Liable for Tax

Marriage, Divorce & Taxes

Marriage presents a number of difficult tax questions. One question is whether both spouses can be held liable when they file separately and one spouse fails to pay their taxes. This is a common marriage tax question that we are asked. One might think that the married filing separate status fully protects the other spouse.…

When Withdrawing IRS Tax Lien Facilitates Collection

The IRS’s collection efforts can impact different taxpayers differently. While the IRS has broad collection powers, there are some taxpayers who are largely immune from the IRS’s collection efforts. This varied impact is partly due to the range of collection tools Congress has provided to the IRS. The IRS lien notice provides an example. Many…

IRS Lien on Trust Assets

Irs Lien On Trust Assets

As long as the government tries to collect taxes, there will be taxpayers who try to find ways to not pay the taxes. These tax payment avoidance options often involve co-ownership of property or, in many cases, trusts. The recent United States v. Simones, No. 1:20-cv-00795-PJK-SCY (D.N.M. 2021) case shows how the IRS is able…

The Contract for Deed Can Avoid IRS Liens

The Contract For Deed Can Avoid Irs Liens

The contract for deed can provide a way to transfer ownership of property to someone who owes back taxes to the IRS, while preserving the right to avoid the IRS lien and IRS foreclosure. Real estate investors and those doing real estate deals may prefer these sales as they can often be made at higher…

Property Rights & IRS Levies: Louisiana’s Usufruct

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…

IRS Levy Does Not Attach to Future Payments

Avoiding Hobby Loss Limits For Long-term Projects

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

Transferring Property to a Spouse After IRS Lien

Credit For Employment Taxes Reported In Error For Another Entity

There are a number of difficult questions that come up when one spouse has a debt with the IRS and also owns property jointly with their spouse. The question is often whether the spouses can transfer the property to the non-liable spouse. The answer is, maybe. The court recently addressed this in U.S. v. Gerard,…

Court Invalidates Process to Challenge IRS Levy

Tax Court Expands Innocent Spouse Relief For Divorced Taxpayers

If the IRS fails to mail a collection notice to the taxpayer or if it mails a required collection notice to a taxpayer using the wrong address, should the taxpayer be able to get a court ruling invalidating the IRS’s subsequent collection efforts?  Congress added several notice requirements to help protect taxpayers from unlawful IRS…