Can the IRS be Friendlier and More Efficient at the Same Time?

Can The Irs Be Friendlier And More Efficient At The Same Time?

The Treasury has been working on stepping up its exam and collections efforts. As a result the IRS appears to be moving back its pre-Revenue Restructuring Act (RRA) of 1998 posture, which was enacted as a result of numerous IRS abuses. Yet, the IRS is still bound by the RRA. Are We Asking Too Much…

The Bankruptcy Abuse Prevention and Consumer Protection Act

The Bankruptcy Abuse Prevention And Consumer Protection Act

For the most part the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 comes into full force on October 17, 2005. The Act contains a number of tax-related provisions, almost all of which are controversial. I will focus on a few of the tax-related provisions. The Bankruptcy Code & How It Works The Bankruptcy…

Audit Reveals Deficiencies in IRS Procedures

Audit Reveals Deficiencies In Irs Procedures

In the Revenue Restructuring Act of 1998, Congress provided that taxpayers were to be provided a hearing before the IRS filed a lien or levy on taxpayer property. If filed timely, this involves a collection due process (CDP) hearing; if not filed timely, this involves an equivalency hearing. Typically both hearings are held before the…

IRS Says Taxpayer’s Payments Were Too High

Irs Says Taxpayer’s Payments Were Too High

If the taxpayer submits an installment agreement request that full pays the liability, can the IRS reject the request as the payment amount is too high? The court addresses this in Lites v. Commissioner, T.C. Memo. 2005-206. Facts & Procedural History The taxpayers were a husband and wife. The taxpayer-husband was a financial products salesman…

IRS Disclosure of Confidential Information

Irs Disclosure Of Confidential Information

The IRS is prohibited from disclosing taxpayer information to third parties.  There are a number of exceptions.  But when the laws are violated, the courts can and do award damages to taxpayers.  The Ward v. United States, 973 F. Supp. 996 (Dist. Colo. 1997) court case provides a prime example. Facts & Procedural History The taxpayer owned…

Congress Proposes Changes to the IRS Offer in Compromise Program

Congress Proposes Changes To The Irs Offer In Compromise Program

The Offer in Compromise (OIC) has proven to be an invaluable tool for taxpayers to resolve tax disputes with the IRS. OICs have allowed taxpayers to come into compliance with our tax laws and they have also allowed the government to collect tax liabilities that would otherwise go uncollected. Yet, Congress has taken a notion…

The Three Offer in Compromise Options

The Three Offer In Compromise Options

The IRS offer in compromise program is one avenue for settling tax debts for less than the amount owed. There are three different types of offers that can be submitted under this program. The court in Eberhardt v. Commissioner, T.C. Summary 2004-147, addressed each one. The case provides a good overview of how the IRS…

Tax Liability Review by Tax Court Limited

The collection due process hearing law has provided taxpayers with another avenue for challenging their underlying tax liabilities. With this option, taxpayers can let the IRS assess the additional tax or penalties and then wait for the IRS to attempt enforced collection for the balance. They can then file a collection due process hearing request…