Can you avoid an IRS wage levy by having your employer change your status from that of an employee to a contractor? The court addressed this in Hudiak vs. United States, No. MJG-11-1271 (D. Md. 2018) by ordering the taxpayer to make installment payments to the IRS despite the change in employment status. The Facts &… Continue reading Avoiding IRS Wage Levy by Change of Status
The post Avoiding IRS Wage Levy by Change of Status appeared first on Austin Tax Attorney | Mitchell Tax Law.
In Internal Revenue Service v. Murphy, No. 17-1601 (1st Cir. 2018), the taxpayer discharged his unpaid taxes in bankruptcy. The IRS continued to try to collect the discharged tax debt. The case is a must read for taxpayers who find themselves in this same situation. The Facts & Procedural History The taxpayer in Murphy filed Chapter… Continue reading IRS Cannot Collect Taxes Discharged in Bankruptcy
The post IRS Cannot Collect Taxes Discharged in Bankruptcy appeared first on Austin Tax Attorney | Mitchell Tax Law.
Can you take a deduction for clothing? What if you purchase the clothing for work and would not otherwise have purchased the clothing? What if the clothing is only worn at work? This is a common dispute that comes up on audit with the IRS. The Farolan v. Commissioner, T.C. Summary Opinion 2018-28, case provides… Continue reading Can I Deduct My Clothing Costs?
The post Can I Deduct My Clothing Costs? appeared first on Austin Tax Attorney | Mitchell Tax Law.
The IRS almost always checks for unreported income when it audits an income tax return. The IRS does this by analyzing the deposits made in the taxpayer’s bank accounts. But what if a deposit was not taxable, as in the case of an amount received for a third party and paid out to a third… Continue reading The Ins and Outs of the IRS’s Bank Deposit Analysis
The post The Ins and Outs of the IRS’s Bank Deposit Analysis appeared first on Austin Tax Attorney | Mitchell Tax Law.
Can you deduct car and truck expenses, such as mileage, if your business has minimal activities? The court addressed this in Samadi v. Commissioner, T.C. Summary Opinion 2018-27, which provides an opportunity to consider the question. Facts and Procedural History The facts and procedural history for the case are not unusual. The taxpayer obtained a real… Continue reading Deducting Mileage for Business With Minimal Activities
The post Deducting Mileage for Business With Minimal Activities appeared first on Austin Tax Attorney | Mitchell Tax Law.
If you owe the IRS back taxes but want to buy real estate or some other type of property, can you form a legal entity and use it to acquire property and thereby put the property beyond the IRS’s reach? The court recently addressed this in United States v. Jones, No. 8:17-cv-2389-T-24 AEP (M.D. Fla.… Continue reading Can the IRS Take Property Purchased in a Business Name?
The post Can the IRS Take Property Purchased in a Business Name? appeared first on Austin Tax Attorney | Mitchell Tax Law.
If the IRS has a superior lien on real estate, it should enforce its lien and apply the sales proceeds to reduce the taxpayer’s unpaid taxes. But what if there is a junior lien that acquires the real estate first? Can the IRS work out a deal with the junior lien holder and divert a… Continue reading IRS Refuses to Enforce Lien, Leaving Taxpayer Without Recourse
The post IRS Refuses to Enforce Lien, Leaving Taxpayer Without Recourse appeared first on Austin Tax Attorney | Mitchell Tax Law.
Retirement accounts can present a number of challenges when trying to resolve an IRS debt. The IRS considers a retirement account as an asset in its collection analysis. The recent Scanlon v. Commissioner, T.C. Memo. 2018-51, court case provides an opportunity to consider the impact of retirement assets on IRS collection matters. The Facts &… Continue reading Managing IRS Debts With Retirement Account Assets
The post Managing IRS Debts With Retirement Account Assets appeared first on Austin Tax Attorney | Mitchell Tax Law.
The IRS’s lien for unpaid taxes attaches to all property owned by the individual. This can prevent the individual from selling or transferring their property or refinancing the property. There are several potential remedies that can help in this situation. One of these remedies is the IRS certificate of discharge. The IRS Certificate of Discharge… Continue reading About the IRS Certificate of Discharge
The post About the IRS Certificate of Discharge appeared first on Austin Tax Attorney | Mitchell Tax Law.