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…
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.
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…
Colorado Tax Penalty Only Applies to Compliance Employees
The state tax authorities can be more aggressive than their federal counterparts when assessing and collecting taxes, particularly in collections. It is often advised to pay state taxes while haggling with the IRS about federal taxes. This does not necessarily mean that the state will always prevail, as there are cases where they do not,…
IRS Recalculation Doesn’t Justify Abating Interest
Taxpayers may sometimes request the IRS to recalculate their tax liability, and the IRS may grant such a request, but this does not necessarily mean that the IRS accepts all the tax positions set out or omitted from the return. If the IRS subsequently recalculates the amount of tax due again and increases the amount…
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
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…
Missing Form 1099 May Establish Reasonable Cause
In general, if you do not receive a Form 1099 to report income to you and you omit it from your tax return, you may still be liable for penalties if the IRS later notices the issue and makes an adjustment. This is because taxpayers have a responsibility to report all their income, regardless of…
IRS Looks at Improving Informants Rewards Program
The IRS using paid informants to identify noncompliant taxpayers may seem controversial, but it has not generated much controversy as the program has been poorly administered. In this article, we will discuss the IRS Informants Rewards Program, its eligibility requirements, and the recent changes to the program. About the IRS Whistleblower Program The IRS Whistleblower…
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
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…