If you owe back taxes, the general rule is that you pay the state and then negotiate with the IRS. The reason for this is that the states are particularly aggressive when it comes to collecting back taxes. Some states are more aggressive than others. And their practices vary over time. In the event of…
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.
Offer in Compromise Deemed Accepted by the IRS
The IRS consumes volumes of information. It processes this information largely by processing paper forms. This includes paper forms submitted by you, the taxpayer and your tax attorneys, and by internal forms created by IRS employees. This inefficient paper form submission and processing is complemented by an insistence on sending taxpayer notices by mail. The…
Prepaying Taxes Before Bankruptcy Filing
Unlike tax laws that establish a specific amount due, bankruptcy laws define what is not due. These conflicting policy objectives can lead to unique outcomes in cases of unpaid taxes. For instance, what happens to taxes held by the IRS but not yet applied to a future tax liability when a taxpayer overpays their taxes…
Bankruptcy Filing Does Not Prevent Innocent Spouse Relief
There are often times when different government agencies with different clients and missions are at odds with one another. This is frequently true when it comes to the IRS and the bankruptcy trustee. The IRS is tasked with protecting the government fisc. The bankruptcy trustee is tasked with protecting the estate for the benefit of…
The Impact of IRS Inefficiency on Tax Collections
The IRS has a reputation for being relentless when it comes to collecting taxes. However, what happens when the agency fails to do its job in a timely manner? What happens when the IRS delays working on cases? Can the IRS benefit from delaying the collection of taxes and denying taxpayer claims? Can the IRS…
New IRS Tax Lien Regulations Issued
When the IRS places a lien on someone’s property, it means that the taxpayer owes the IRS back taxes. The lien serves as a legal claim against the taxpayer’s property, and it can negatively impact their financial and professional life. One of the most significant consequences of an IRS tax lien is the damage it…
IRS Cannot Abate Interest on Employment Taxes
The IRS has a track record of not acting timely. Its failures in this regard are frequent and, sadly, they are expected. The bar has been set so low that we actually expect the IRS to go slow. This can be extremely frustrating for taxpayers and it can even cost taxpayers a considerable amount of…
Taxpayers Cannot Record IRS Telephone Interviews in CDP Hearings
Sometimes it is nice to have a record of what transpired. This is true even if the recording is never used. Just the fact that the recording is being made, and everyone is aware that it is being made, can change the tone and substance of the meeting. The law allows taxpayers to record meetings…
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…
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…