Can a taxpayer put property beyond the IRS’s reach by purchasing the property in the name of a corporation or a third party? The answer is typically “no.” The recent Arlin Geophysical Co. v. United States, No. 2:08-cv-00414-DN-EJF (C.D. Utah 2018) provides an example. Facts & Procedural History The court case involves an individual who……
TX-LW Blogs
Family Member’s Mortgage Filing Trumps IRS Lien?
If a child owes unpaid taxes to the IRS, can the parent file a lien against the child’s property to prevent the IRS from levying on the property? The court considered this in United States v. Allahyari, No. C17-668 TSZ (W.D. Wash. 2018). The Facts & Procedural History Upon graduating from law school in the early……
IRS Audits for Car & Truck Expenses, What You Need to Know
There are a number of issues that the IRS frequently examines on audit. Car and truck expenses are high on that list. The applicable rules and court cases must be reviewed before presenting records to the IRS to substantiate car and truck expenses. This article examines several of these rules and court cases. Deductible Car &……
Conversations Between Spouses Not Evidence of Tax Crimes
Can the IRS record conversations between a husband and wife and use the recordings as evidence for tax crimes? The court addressed this in United States v. Fomichev, No. 16-50227 (9th Cir. 2018) holding that marital communications are privileged even in the case of a sham marriage. Facts & Procedural History Fomichev was born in Russia……
Discharging Unpaid Taxes in Bankruptcy
There are circumstances when unpaid taxes can be discharged in bankruptcy. There are a number of rules involved. They all hinge on whether a tax return was filed. The recent United States v. Mayer, No. 16-626-RGA (D. Del. 2018), case provides an opportunity to consider these bankruptcy-tax rules. Facts & Procedural History The case involved the taxpayer’s……
Agreeing to an IRS Real Estate Foreclosure Sale
Can you ask the IRS to take real estate to satisfy your unpaid tax liability? The answer is “yes,” but it is usually not the best option. The recent order in United States v. Leroy, No. 2:18-cv-01777-MCE-DB (E.D. Cali. 2018) provides an example of this. The Facts & Procedural History Ms. Leroy owed $177,653.70 in unpaid……
Dormant IRS Levy Precludes Wrongful Levy Suit, IRS Wins
What happens if the IRS issues a levy to someone who does not owe taxes to the IRS, but the IRS does not receive anything from the levy? The levy sits dormant for several years. Everything is good, right? But then the third party pays the IRS. Can the person’s right to challenge the levy……
Filing Inventory in Texas Probate
Filing Inventory in Texas Within 90 days after qualification, the personal representative must file with the Court a sworn inventory, appraisement and list of claims (“Inventory”) of the estate. The Inventory must include all estate real property located in Texas and all estate personal property regardless of where the property is located. And it must…
Last Filed Rule Overruled? IRS Collections Uncertain
Taxpayers will often file tax returns that do not report all of their allowable deductions and credits, with the intent of going back and filing amended returns once they are able to determine the correct deductions and credits. Can the IRS base its collection analysis on the originally-filed but incorrect tax returns? The court recently……