Innocent spouse tax relief can provide a remedy for spouses who are liable for taxes reported on a jointly filed income tax return. It is an equitable remedy. But is it available if the tax is due to an obvious error on the tax returns that the spouses both signed? The court addressed this in Denton…
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.
Truck Driver Not Entitled to Deduct Meal and Supply Expenses
Truck drivers are an essential part of our economy, transporting goods across the country to keep businesses running smoothly. Trucking expenses can add up quickly. This puts truck driver tax deductions high on the list of concerns for most truckers. Truck driver tax deductions are expenses that can be deducted from taxable income, reducing the…
Offer in Compromise: Documenting the Value of Assets
The IRS has a structured process for settling tax debts. This is handled through the IRS’s ‘offer in compromise’ program. The program itself has several different sections or workstreams. The primary workstream is the ‘doubt as to collectiblty’ workstream. This refers to offers that are submitted by taxpayers based on their inability to pay. Assuming…
Abate Tax & Penalties for 911 Attacks
Many taxpayers face unexpected challenges in their lives that can make it difficult to meet their tax obligations. For example, the death of a loved one or the trauma of a major event can have a significant impact on a person’s mental health and their ability to manage their finances. In such cases, individuals may…
IRS Guidance on Whistleblower Informant Program
The IRS whistleblower program provides financial incentives for individuals to report tax fraud and evasion. However, the program has drawn criticism for delayed payouts and lack of transparency in processing claims. Recently issued IRS guidance aims to improve procedures by detailing a multi-step review process. However, questions remain about administering reward payments. This article examines…
Reliance on an Incompetent Tax Advisor
The IRS often imposes penalties for various tax return errors and omissions. Taxpayers may defend against certain penalties by showing reasonable reliance on professional tax advice. However, the competence and expertise of the advisor are key, as highlighted in a recent U.S. Tax Court case, Wilson v. Commissioner, T.C. Summary Opinion 2008-91. The case considers…
Refunds After Innocent Spouse Relief Granted
Married couples who file joint tax returns are both liable for any deficiencies or underpayments. But if one spouse qualifies as an “innocent spouse,” they can be relieved of the tax burden. An important question arises – if an innocent spouse previously paid the joint tax debt, are they entitled to a full refund? A…
Discharging Tax Debts in Bankruptcy: The Three-Year Lookback Period
Tax debts in bankruptcy are a weighty and serious topic. Statistics show that in 2019, over 770,000 individuals filed for bankruptcy in the United States, and approximately one-third of those involved some type of tax debt. This highlights the common struggle individuals face in paying their tax obligations. Bankruptcy is a common method for resolving…
Is Alimony Tax Deductible & Related Tax Disputes Involving Alimony
Alimony can be a complicated and contentious issue in divorce proceedings, particularly when it comes to taxes. If payments qualify as alimony pursuant to federal tax law, the payments may be tax deductible by the payor spouse and included in gross income to the payee spouse. Conversely, if the amounts are not alimony for federal…
The Disqualified Employment Tax Levy
Taxpayers generally know that an IRS levy is not a good thing. Most have some sense that it can affect their financial well-being. If they have not been subject to an IRS levy, this may be all they really know about it. The term “levy” is a verb that, in the context of the IRS,…