This blog entry will focus on the various techniques that the California Franchise Tax Board (FTB) use to collect on outstanding liabilities.There are a number of ways that a taxpayer could end up owing the FTB. Generally it is due to either: (1) filing a return and not paying the amount owed in full; (2)
Blog
Calculating IRS Interest
The Internal Revenue Service (IRS) method for calculating interest has changed over time. Currently, the method for calculating interest is described by the IRS as “daily compounding of interest (i.e., interest computed on interest).” Internal Revenue Service, Internal Revenue Manual, Part 20.2.6.1, available at https://www.irs.gov/irm/part20/irm_20-002-006r.html. In other words, each day interest accrues on the principal
Rights as a Taxpayer
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
Bank Levies
When a tax debtor fails to meet his or her tax obligations, the Internal Revenue Service will typically initiate collection proceedings that begin in the form of instituting a levy on the tax debtor’s assets. A levy on the tax debtor’s assets is a effective way to ensure that those assets will be available to
Criminal Investigations
As a general rule, one should always file their tax returns regardless of that person’s ability to pay their taxes. That said, failure to file will not automatically result in a criminal investigation. According to the IRS, the average late filer has failed to file for three years or more and owes approximately $70,000. Furthermore,
Tax Benefits of Marriage
Tax benefits of marriage The recent Supreme Court case challenging the constitutionality of the Defense of Marriage Act, which operates to disenfranchise homosexual couples legally married under state law for estate tax purposes, sheds light on the many tax benefits of marriage. Among these benefits is of course beneficial treatment for estate tax purposes, but
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