IRS collection hearings are one of the procedural safeguards Congress created to prevent the IRS from taking certain actions without first confirming that they have followed the law. These safeguards are needed as the IRS works a lot of cases and the volume can result in the IRS not following the law. The IRS also…
Category: IRS Debts
IRS Debts
Tax debts owed to the IRS, including unpaid taxes, penalties, and interest. Give us a call to see how we can help, (713) 909-4906.
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…
When Does the IRS Issue a Lock-in Letter?
When Does the IRS Issue a Lock-in Letter? Many taxpayers get behind in paying the IRS as a result of IRS audits. Others have tax balances as they are self-employed or contractors and they simply do not make estimated payments. There are others who owe tax as they instruct their employers to withhold too little…
IRS Collectors Influence on Settlemet Offer
The IRS makes decisions about tax returns, back taxes, etc. These decisions may be made by one or more persons within the IRS. These decisions may be made by IRS employees whose job functions and missions are not the same. This is most evident in the context of IRS audits. The IRS auditor’s mission is…
Tax Debts & the Dreaded Dissipated Asset
It is very difficult to run a business and to do so in full compliance with all of our laws. Having worked with thousands of business owners, the message is the same. Something always seems to give. If the business focuses on the operational side of the business to comply with industry regulations or to…
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…
When Can the IRS Collect Tax Debts from a Dead Person?
Dad filed his taxes but didn’t pay. Several years pass by, say five years. Dad dies. The family eventually files for probate several years later. Say 10 years has passed since the taxes were first due? Has the time limit for the IRS to collect the unpaid taxes lapsed? How does the filing of the…
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…
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…
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…