Tax Procedure Archives

Can You Sue the IRS for Damages?

There are times when IRS employees violate the law. This includes intentional and negligent conduct that violates the law. Many of these violations go unreported. This is often for fear of retaliation or lack of resources. It may also be due to a belief that there is no remedy for taxpayers in this situation. The…

IRS Documentation for Travel Expenses

Business travel expenses are deductible. These are expenses for business trips and work trips, such as car and truck expenses, airfare and hotels and lodging. It can also include travel meals. Those looking to deduct business trip expenses are running a risk as the IRS frequently disallows these expenses on audit. It does so even…

Does Nominee Tax Liability Extend to Employees?

There is a large segment of our population that owe back taxes to the IRS. Whether you know of their situation, chances are good that you know someone who owes back taxes. Chances are good that you have unwittingly transacted business with an individual or business that owes back taxes. You may have even worked…

IRS Collection Hearings: How Thorough Does the IRS Have to Be?

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…

Filing Jointly v. Separately: Impact on Innocent Spouse Relief

There are a number of factors those who are married have to consider when deciding on their tax filing status. If you were to search for information about the difference between filing jointly v. separately (or mfj vs mfs), you would likely find articles that explain the mathematical calculation. They explain which tax deductions and…

IRS Whistleblower Claims Denied for Inadequate IRS Audit

The Revenue Restructuring Act of 1998 made significant changes to the IRS. One change is that IRS employees cannot be rewarded based on enforcement efforts. This has changed the nature of the relationship between IRS management and IRS employees. For example, IRS auditors report to group managers. Group managers focus mostly on assigning audit cases…

Relying on Advice From the IRS

IRS employees often give bad and incorrect tax advice. There are numerous examples of this in reported tax cases. Unlike advice provided by licensed professionals, such as tax attorneys, one generally cannot prevail in a malpractice suit against the IRS. That leaves the question as to whether bad or incorrect advice from the IRS can…

IRS Says Congress’ Penalty Relief Not Available

To be viable, businesses have to pay for their operations and, after-tax, produce a profit or return. The tax burden can make it very difficult to produce a profit. This is particularly true when sales taxes and payroll taxes are considered. The sales tax is imposed on the transfer of property (and in some states…

Hospital Administrator Owes Trust Fund Penalty

Employment taxes can be deadly for businesses. Once a business gets behind, it can be impossible to catch up. Those operating a failing or struggling business may feel that using employment taxes as a short-term loan from the IRS is justified. The thinking may be that they are needed to keep employees employed, to save…

Avoid IRS Interest With Credit Elects

A tax attorney might say that you should never go into an iffy transaction naked. This refers to a tax position that covers a real or perceived tax liability from a transaction. This is a corporate tax concept. Larger corporations often have a longer view when it comes to business tax planning. Given their time…