Blog Profile / Tax Problem Attorney Blog

Filed Under:Business & Finance / Taxes
Posts on Regator:215
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Archived Since:March 8, 2011

Blog Post Archive

The Requirements for Traditional Innocent Spouse Relief

Traditional innocent spouse relief is one of three types of defenses available to taxpayers when the IRS is attempting to collect tax that is attributable to a return filed jointly with your spouse or former spouse. The IRS can collect from either spouse for tax assessed on a joint return, but innocent spouse defenses allow […]

What’s the Difference Between an Innocent Spouse and an Injured Spouse?

An innocent spouse defense is used to get relief from the typical joint and several liability that exists for joint tax returns. If you filed a joint return, and your spouse erroneously understated the amount of tax owed, you can attempt to claim innocent spouse relief. If you are successful, the IRS will not attempt […]

Innocent Spouse Relief Options: Separation of Liability

Separation of liability is an innocent spouse defense that allocates a tax deficiency between two spouses in proportion to each spouse’s contribution to the deficiency. While the IRS can generally collect the entire tax debt for a joint return from either spouse, separation of liability—along with the other innocent spouse relief options—prevents the IRS from […]

Which Court Should You Use For Your Tax Dispute

There are actually four different courts that can be used for tax litigation. The United States Tax Court is the most commonly used option, but other courts may have advantages in certain situations. The four courts with jurisdiction to hear tax controversy cases are: Tax Court Continue reading

What to Do If You Are Worried About Undisclosed Foreign Bank Accounts

United States taxpayers have an obligation report their interest in any foreign financial accounts with regard to the balances in those accounts. If the aggregate balance of all such accounts exceeds $10,000 at any point during the year then you are also required to file a Foreign Bank Account Report (FBAR). Despite this legal requirement, […]

How to Choose an FBAR Attorney

There is no specific designation as an “FBAR attorney”, but many taxpayers with undisclosed foreign financial accounts need to talk to someone with FBAR experience about their potential liability and what actions they can take to mitigate risks. A good FBAR attorney is really just a tax attorney who has experience with Foreign Bank Account […]

The Elements of Tax Evasion

Tax evasion can be shown when the following three elements are present: The existence of a tax deficiency An attempt to evade or defeat tax Continue reading

What To Do When You Receive an IRS Notice

Receiving a notice from the IRS is not something most people look forward to. You may be confused as to what the notice is saying, and afraid of the possible consequences, such as owing substantial back taxes, interest, and penalties. However, there are two important things to know about most IRS notices: You may have […]

How to Determine Residency for California State Income Tax Purposes

The California Franchise Tax Board (FTB) can come after snowbirds and other people who spend time in California, but maintain a tax residence in other states. For California income tax purposes, nonresidents are only taxed on income earned from California sources. Residents, on the other hand, are taxed on all of their income, even if […]

Will the IRS Ever Return Seized Property?

The IRS is generally required to send you a notice before levying or seizing your property. You may be able to prevent a levy by timely requesting a Collection Due Process (CDP) hearing, and negotiating a payment plan or otherwise contesting the levy. You have 30 days from the date of the notice to request […]

The Requirements for Equitable Relief as an Innocent Spouse

Equitable relief is one of three forms of innocent spouse relief available to married, or formerly married, taxpayers. Taxpayers who filed joint returns are generally jointly and severally liable for the full amount of any tax due, but innocent spouse relief allows an escape from this liability. Unlike the other two forms of relief, equitable […]

What to Expect During an In-Person IRS Tax Audit

No one looks forward to receiving a letter from the IRS notifying you that you have been selected for an examination, also known as an IRS tax audit. The IRS may choose to complete the examination by mail by requesting additional information about certain items on your tax return, or they may complete an in-person […]

How to Appeal a Denial of a Request for Innocent Spouse Relief

A request for innocent spouse relief is made by filing form 8857 within two years of the date that the IRS first attempted to collect the tax from you. You may have more time in certain situations, such as if you are seeking equitable relief. The IRS must contact your spouse or former spouse to […]

Is Certain Property Exempt From IRS Seizure?

The IRS has broad authority when attempting to collect delinquent tax, but there are limitations to what collections actions they can take. The IRS generally has to follow certain procedures before they can levy, or seize, your property, and certain property is exempt from IRS seizure. Generally, the IRS must send a taxpayer a Notice […]

What Is an IRS Jeopardy Levy?

The IRS must generally issue a notice to a taxpayer before proceeding with a levy on their assets. The taxpayer is given 30-days to request a Collection Due Process hearing (CDP hearing), where the taxpayer can attempt to avoid the levy action by negotiating an installment agreement, disputing the tax liability that resulted in the […]

When to Use the IRS Collection Appeals Program

The Collection Appeals Program (CAP) is an IRS procedure available to appeal a broad range of collection actions. However, it does have some pitfalls when compared to a Collection Due Process (CDP) hearing, so consider consulting with a tax attorney if you are not sure which procedure to use. The CAP procedure can be used […]

How to Use the IRS Fast Track Settlement Program for Small Businesses

Fast Track Settlement (FTS) is an IRS program designed to resolve tax disputes within 60 days with the help of a trained mediator. Small businesses and self-employed taxpayers can used this program to quickly and efficiently resolve tax disputes, while still retaining all of their other appeal rights. Before using FTS, a taxpayer must attempt […]

Defenses to Unreasonable Compensation Allegations

The IRS tends to keep an eye on unreasonable compensation in three distinct situations. The first involves a C-corporation that overpays their shareholder-employees in order to increase its deduction for business expenses. The second...Show More Summary

The Substitute Return: When the IRS Files Unfiled Returns For You

If you fail to file your tax return when you have a legal obligation to do so, the IRS can use the Substitute for Return (SFR) procedure to file it for you. There are several disadvantages to this scenario from a taxpayer’s perspective, and you should take action immediately upon receiving a notice that you […]

What Happens at a Collection Due Process Hearing?

A Collection Due Process (CDP) hearing may be your last chance to prevent an IRS collection action, such as  bank account levy. It is also an opportunity request that the IRS withdraw or release its tax lien.  At a CDP hearing, you may request an installment agreement, offer in compromise, innocent spouse defense, or you […]

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