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

Ex-spouse’s Defense For Tax Discharged In Bankruptcy

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…

Increased Fees for IRS Tax Installment Agreements

Increased Fees For Irs Tax Installment Agreements

The IRS recently reviewed the government cost of processing IRS tax payment installment agreements, which has resulted in the IRS proposing to increase the costs for filing IRS installment agreements. The IRS tax payment installment agreement is one of the remedies of last resort for taxpayers who have outstanding tax liabilities. There are a number…

The IRS’s “Last Known Address” Rule

The Irs’s “last Known Address” Rule

The Internal Revenue Service (“IRS”) plays a crucial role in the collection and enforcement of tax laws in the United States. In order to keep taxpayers informed of important events and meet legal requirements, the IRS frequently communicates with them via mail. The IRS LOVES letters. However, many taxpayers are unaware that the IRS is…

IRS Private Tax Debt Collection Agencies

Irs Private Tax Debt Collection Agencies

The IRS spends a considerable amount of time and money trying to collect unpaid tax debts. There has been some thought that private collectors would have better results. Congress recently enacted Section 6306 to allow the IRS to assign certain delinquent tax accounts to private collection agencies. The new law and how it is implemented…

The IRS Announces an Online Tax Payment Agreement System

The Irs Announces An Online Tax Payment Agreement System

The IRS recently announced that it will be launching a system to allow “tax professionals” to apply online for tax payment agreements or tax installment agreements for their clients. IRS Online Pro’s & Cons  While this is a step in the right direction, it does present yet another opportunity to consider whether the IRS should…

Deposits vs. Payments: How to Pay the IRS

Deposits Vs. Payments: A Distinction Taxpayers Must Understand Before Making Payments To The Irs

Paying taxes is an essential part of being a responsible citizen. The IRS has specific rules and procedures for taxpayers to follow when submitting their tax payments. However, many taxpayers may not be aware that there is a difference between making a payment and a deposit when paying the IRS. The two are not the…

New Offer in Compromise Legislation

New Offer In Compromise Legislation

As discussed in a previous post, Congress has been toying with making changes to the IRS offer-in-compromise program. These changes were eventually included in the “Tax Increase Prevention and Reconciliation Act,” which President Bush signed into law on May 17, 2006. The new rules apply to offers in compromise filed 60 days after the date…

Prisoner Entitled to Convenient CDP Hearing

Prisoner Entitled To Collection Due Process Hearing

There are quite a few rights taxpayers have, that are disregarded by the IRS, and there is no remedy when it happens.  As noted in Butti v. Commissioner, T.C. Memo. 2008-82, the IRS collection due process hearing can be one of those circumstances. The case involves a collection due process hearing, which is a legal…

Can the IRS Re-Assess Tax to Fix Its Own Error?

Abatement Of Tax Penalties And Interest

When a taxpayer makes an error on their tax return or fails to make timely payments to the IRS, it can result in additional tax, penalties, and even interest owed. This can be the case even if the taxpayer is just one day late or if the applicable tax laws are unclear or highly complex.…