A very common situation for a non-filer is an S corporation that has not filed in a number of years. To activate the corporation and put it in good standing can involve substantial fees. First, a taxpayer will have to pay substantial franchise tax fees and penalties for failing...
A trust fund recovery penalty is assessed against a person who is responsible for failing to pay payroll taxes. The trust fund recovery penalty is the portion of the employee’s check that is withheld for income taxes and social security. The IRS takes a shot gun approach to...
When it comes to tax collection, the IRS isn't the only government agency that you need to worry about. The Department of Justice can be involved in getting court judgments on tax payers and collecting back taxes. Generally, the tax situation has to be pretty serious for the...
Losing your house to the IRS may be your worst fear. The law does allow the IRS to seize and sell a home to pay a back tax debt. It is a difficult process for IRS, but IRS Revenue Officers are increasingly threatening to do just this. More often than not, the threat by an IRS...
The IRS regrettably may levy social security benefits under two provisions of the Internal Revenue Code, IRC 6331(h) or 6331(a). IRC 6331(h) is an automated levy that is limited to 15% of the social security payments. Section 6331(a) is a less frequently used manual levy by IRS...
Have you ever actually tried to call the IRS to discuss your tax problem? You’ll literally wait for hours before you get through to a human being. To add insult to injury, when you finally do get through to someone, you’re often told their computers are down and you’ll need to...
The Internal Revenue Code makes it clear that any time you are dealing with the IRS, you have the right to representation in connection with contact with any employee or officer of the IRS. IRC 7521(b)( 2)provides as follows: “If the taxpayer clearly states to an officer or...
Lately, the IRS has shown an increased willingness to seize IRAs and retirement accounts to pay delinquent tax debts. These deplorable levies are genuinely frightening to a retiree who cannot survive on Social Security alone. IRS management moves slowly in it’s approval of such...
In order for the IRS to levy, it must have assessments. To generate assessments for a non-filer, the IRS will do substistute for returns (SFRs). The IRS will often use the SFR assessments to issue wage and bank levies. If the levies are a hardship, does the Taxpayer have to...
Historically, a taxpayer could late file tax returns and, after a two-year window, discharge the taxes in a Chapter Seven bankruptcy. Even if the IRS had done Substitute for Returns (SFR), the taxpayer could discharge the taxes if he or she met the two-year rule. In 1999, a...