When a taxpayer fails to meet his or her tax obligations, and provided that taxpayer does nothing to remedy the situation, such as request an offer in compromise or an installment agreement, the Internal Revenue Service will eventually initiate collection proceedings. Those collection proceedings include the filing of a Notice of Federal Tax Lien with
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IRS Non-Collectible Accounts – Basis for Reporting
IRS Non-Collectible Accounts Policy Statement 5-71 (aka P-5-71) grants the Internal Revenue Service (IRS) with the authority to report accounts currently not collectible. When an account is deemed currently not collectible, accounts can then be removed from collections altogether until the account is up for review where it is determined whether the currently not collectible
How to Get a Tax Levy Released
There are a number of ways to release an Internal Revenue Service (IRS) tax levy, the most obvious being to simply pay off the outstanding tax obligation. Of course, that option remains unavailable to many people, but there are a number of other ways to release a levy that many tax debtors might find advantageous.
IRS methods of dealing with Repeater Taxpayers
The Internal Revenue Service (IRS) provides a range of options to taxpayers that cannot meet their tax obligations in a timely fashion. However, the IRS tends to give far less leniency to some taxpayers than others, and “repeaters” are one such group that the IRS tends to accord far less leniency. A repeater is defined
Streamlined Installment Agreements
When a taxpayer lacks sufficient assets and income to meet a tax obligation in full, installment agreements with the Internal Revenue Service (IRS) can be useful. Installment agreements prevent the IRS from levying on a tax debtor’s assets for the period of time that the installment agreement remains in place, and provided the tax debtor
Tax Penalties
The penalties associated with a tax debtor’s federal tax obligations can be extraordinarily burdensome if not avoided by following the appropriate Internal Revenue Service (IRS) procedures for taxpayers. Keep in mind that these penalties are not set in stone, and may vary depending upon the facts of a taxpayer’s situation, and in light of a
IRS Audit Red Flags
The IRS audits only slightly more than 1% of all individual tax returns annually. However, the chances of being audited increase depending upon various factors, including your income level. This blog post will discuss the top red flags that trigger an IRS audit so as to warn taxpayers of situations that increase the chances of
Discharging state income taxes in bankruptcy
State Income Taxes in Bankruptcy State income tax can be burdensome and may contribute to a debtor’s decision to file for bankruptcy. Fortunately, state income tax is dischargeable in bankruptcy under certain circumstances. Those circumstances are largely identical to the circumstances under which federal income taxes can be discharged, as the power of the bankruptcy
Methods of Proving Fraud / Tax Evasion
Tax fraud proceedings can be either civil or criminal, and different burdens of proof will apply in either proceeding. In criminal proceedings, the IRS must prove guilt beyond a reasonable doubt, whereas in civil proceedings the IRS need only prove fraud by clear and convincing evidence (that the thing to be proved is highly probable
Tax Penalty Abatement
Tax Penalty Abatement When a taxpayer fails to meet their tax obligations to the Internal Revenue Service (IRS), the IRS will assess one or more penalties for such failure. Though taxpayers often cannot avoid penalties that are properly issued, there are situations in which a penalty can be avoided. With respect to written advice obtained