The Internal Revenue Service is notorious for being slow in doing its work, and its delay often results in taxpayers being charged with interest on their tax liabilities. While the IRS has the authority to abate or remove interest on tax liabilities, the process for getting the IRS to exercise this discretion can be challenging.…
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.
If a Trustee Owes Taxes, Can the IRS Seize Trust Assets to Satisfy the Tax?
The IRS has broad powers when it comes to collecting unpaid tax debts, but its authority is not without limits. For example, there are limits on what property the IRS can seize if the property is held by a third party. This can include property held in trust. Consider the situation where a father creates…
The New Tax Return Preparer Penalty
The tax return preparer penalty is a tool used by the IRS to encourage compliance with tax laws and ethical behavior among tax return preparers. The penalty is imposed when a tax preparer engages in conduct that results in the understatement of a taxpayer’s liability due to fraudulent, reckless, or intentional misconduct. The penalty amount…
Navigating IRS Collections During an Economic Downturn
The financial downturn has left many taxpayers struggling with unpaid tax debts just as IRS collection efforts ramped up. Though a challenging time, the economic turmoil also created opportunities to negotiate with the IRS from a position of strength. Negotiating with the IRS is always challenging. But with proper diligence and records, taxpayers can use…
Innocent Spouse Relief for Ex-Spouse’s Income
Divorce is a stressful situation. It is one where people do not always act as they should. This includes taking actions that caused or led up to the divorce. Right or wrong, the shared finances of marriage often come into play. This results in additional marital disputes. Innocent spouse relief can provide a much-needed remedy…
Truck Driver Not Entitled to Deductions When Records Destroyed
The IRS has a long history of going after truck drivers. There are a number of reasons for this, but, largely it is because of the nature of the expenses that truckers incur. Most truck drivers are small business owners, as they own and operate their own rigs. These small businesses travel, so their expenses…
Tax Refund Fraud Committed by Prisoners Has IRS Baffled
Tax fraud is a crime that has always been a challenge for the IRS to detect and prosecute. It is even more complicated when prisoners get involved, as is the case with fraudulent tax refund schemes. The United States v. Turturro, 06-12033 (11th Cir. 2007) case is an example of this type of fraud, where…
No Criminal Fraud, But Civil Fraud Penalty Applies
Tax fraud is a serious crime that carries severe penalties, including substantial fines and imprisonment. But what happens when a criminal court finds that the conduct in question does not rise to the level of tax fraud, yet a civil court later determines that it does? This was the dilemma faced in Maciel v. Commissioner,…
Tax Evasion & Evidence of No Tax Due
Tax evasion is a complex legal issue that can carry severe consequences, including hefty fines and imprisonment. Unlike other crimes where the act is either committed or not, taxes can be owed in varying degrees, making it difficult to determine whether a violation of the law has occurred. Can a defendant avoid a tax evasion…
IRS Collections for Payroll Taxes & Single Member LLC Owners
The IRS has broad collection powers. These powers generally trump state law. This is even true of state Limited Liability Company (“LLC”) rules that prevent parties from suing or reaching the LLC’s assets. There are nuances to these rules when it comes to income and payroll taxes. The payroll tax rules have changed completely. Many…