The tax code is complicated, and can even be overwhelming, especially if you run into problems with your taxes. The IRS unquestionably has greater knowledge of the tax code, so it is important to be aware of your rights as a taxpayer. Congress, in the last two decades, passed the Taxpayer Bill of Rights. This
IRS Issues
How the IRS Determines Who Responsible People are – Trust Fund Penalty
How the IRS determines who responsible people are (Trust fund penalty) Federal taxes may seem burdensome to many employers, but prompt payment of those taxes is often preferable given the penalties associated with a failure to pay. One such penalty is the Trust Fund Recovery Penalty (TFRP), which is assessed against any responsible person who
Currently Not Collectible Status
Among the remedies available to taxpayers in financial distress that are unable to meet their tax obligations is the ability to obtain Currently Not Collectible (CNC) status from the Internal Revenue Service (IRS). The IRS has authority to designate an account as CNC under Policy Statement 5-71, and may do so for a variety of
Tax Legal Problems
A taxpayer may be subject to tax liability before the Internal Revenue Service (IRS), or the state agencies such as the Employment Development Department (EDD), State Board of Equalization (SBOE), and Franchise Tax Board (FTB). The IRS is the federal government agency responsible for tax collections and tax law enforcements. The EDD is part of
Taxpayer Advocate Service
The Taxpayer Advocate Service (TAS) is an organization that operates independently within the Internal Revenue Service (IRS), and exists in order to assist taxpayers experiencing “economic harm.” The IRS defines “economic harm” as a situation where someone is incapable of providing basic necessities for themselves, including housing, food, or transportation. Internal Revenue Service, The Taxpayer
Abatements and Reconsiderations
Abatements and Reconsiderations When a tax debtor fails to meet his or her federal tax obligations, he or she may too often assume that the taxes originally assessed were done so in the appropriate manner. However, this is often not the case, and in recognition of this fact the Internal Revenue Service (IRS) has been
How Future Income is Calculated
In order for the Internal Revenue Service (IRS) to determine whether a taxpayer is entitled to a reduction in their federal tax burden by way of an Offer in Compromise based on doubt as to collectability, the taxpayer’s future income must be determined. How future income is calculated is essentially an estimate made by the
Taxpayer Advocate Service
The Taxpayer Advocate Service (TAS) is an organization that operates independently within the Internal Revenue Service (IRS), and exists in order to assist taxpayers experiencing “economic harm.” The IRS defines “economic harm” as a situation where someone is incapable of providing basic necessities for themselves, including housing, food, or transportation. Internal Revenue Service, The Taxpayer
Tax Gap
The tax gap is the Internal Revenue Services (IRS) approximation of the total amount of taxes outstanding. The calculation of this figure is a massive endeavor and only occurs every five years or so. As of 2006, the voluntary compliance rate through the U.S. was relatively unchanged at approximately 83%. Internal Revenue Service, The Tax
Identity Theft and the IRS
Many people are aware of the many pitfalls of identity theft, including the potential credit implications, the hassle of getting new cards and information, and the lackluster financial history with which an identity theft victim is sometimes associated. Yet identify theft also has federal tax implications, namely when it comes to reported income and tax