A debtor will typically file for bankruptcy in order to seek the protection of the bankruptcy laws against debts that cannot be paid in full, and it is not uncommon that such debts will include federal tax debts owed to the Internal Revenue Service (IRS). Typically, federal tax debt is not dischargeable in bankruptcy. That
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Cohan Rule
Having become so commonplace in our everyday lives, it almost goes without saying that a taxpayer needs to retain receipts for any expenditures that taxpayer wishes to claim as a deduction. Yet it is equally commonplace that one or two of those receipts will go missing, at which point the question the taxpayer faces is
SBOE: Why am I Being Audited?
SBOE: Why am I Being Audited? A government agency that business owners and operators are likely to be familiar with, but which may be wholly unknown to the average taxpayer, is the California State Board of Equalization. The State Board or BOE, as it is often called, has a variety of responsibilities which include monitoring
What is an IRS Levy?
As per the Internal Revenue Service (IRS) website, “[a] levy is a legal seizure of your property to satisfy a tax debt.” See Internal Revenue Service, Levy. A levy is more drastic than a lien; a lien is merely placed on a debtor’s assets as security in the collection of the underlying tax debt.
Property Exempt From an IRS Levy
When you get an IRS Levy Notice you should be aware. When a tax debtor is unable to meet his or her federal tax obligations, one of the remedies that the Internal Revenue Service (IRS) has at its disposal is the ability to levy on the assets of the debtor in order to satisfy that
Levy Release and Conditions for Levy Release
The ability to levy on the assets of a tax debtor that has failed to meet his or her federal tax obligations is one of the major enforcement remedies the Internal Revenue Service (IRS) has at its disposal. Generally speaking, levies that are not continuous wage levies and is served prior to the expiration of
Transferee Liability: Avoiding a Levy
Transferee liability situations can arise where a taxpayer transfers assets to another (the “transferee”), while owing taxes to the Internal Revenue Service (IRS), and the the IRS pursues those transferred assets in order to satisfy the transferor’s tax obligation. A transferee can be an heir, a recipient of a gift, or a shareholder of a
Jeopardy Assessments and Jeopardy Levys (IRM 5.1.4 and 5.11.3)
The Internal Revenue Service (IRS) has a number of remedies at its disposal designed to further the collection of outstanding tax obligations. Among these remedies is a jeopardy assessment, which occurs where the IRS believes following the normal course of tax collection would result in a loss to the IRS and the government. Under IRC
Partial Payment Installment Agreements
As a default rule, the Internal Revenue Service expects that taxpayers are to meet their tax obligations in full, whether immediately as they become due or if not, then over the life of an installment agreement, or payment plan. However, installment agreements are typically granted only where the tax debtor is financially capable of satisfying
IRS Interest Abatement
When a taxpayer fails to meet their federal tax obligations to the Internal Revenue Service (IRS), interest will accrue on the amount of the tax obligation that remains outstanding. However, there are a number of mitigating circumstances in which a taxpayer can seek to avoid or abate interest on a tax obligation. Interest on tax