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: Tax Procedure
Tax Procedure
From IRS audits and appeals to tax litigation and penalties, our tax attorneys can help you navigate the tax procedure landscape with confidence. 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…
Can Taxpayers Withhold Payment Pending Government Response?
As citizens, we sometimes seek answers from the government, be it information about UFOs or more practical questions such as what provision grants the IRS the right to collect taxes. For years, tax protesters have been asking the latter, only to be met with evasive responses from the IRS. The case of We the People…
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…
Two Defendants & Tax Fraud: Should They Get Separate Trials?
The U.S. legal system affords taxpayers who commit tax fraud the right to a hearing, but what about the right to a separate hearing? What if one is put on trial with a co-defendant who is particularly offensive or, perhaps worse yet, one who is more innocent than another? United States v. Robbins, 220 F.…
Court Preempts IRS by Taking Taxpayer Property
In some cases, courts may take shortcuts to ensure that justice is served. While these shortcuts can be effective in obtaining the desired outcome, they can also raise concerns about fairness and due process. One such case is United States v. Spangler, 224 F. App’x 890 (11th Cir. 2007), where a trial court ordered the…
“Rule of Thumb” for Reporting IRS Employee Misconduct
The ethical and moral standards for IRS employees are not as stringent as those that are imposed by non-government agencies. There are however some minimal standards that apply, which are in addition to remedies for misstatements by IRS employees. The IRS Restructuring and Reform Act of 1998 was enacted to improve taxpayer rights and service,…
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…
Police Can Turn Over Records to the IRS
The IRS has a number of tools at its disposal to gather information. This includes the IRS summons, for example. These tools only allow the IRS to get records that the taxpayer voluntarily identifies or that the IRS discovers. The IRS cannot obtain any records that it cannot identify. This leads to the question of…