When a business owes unpaid taxes, bankruptcy can provide the business or its owner with a fresh start. The unpaid Federal taxes can be discharged if certain requirements are met. One of these requirements is that the tax returns for the unpaid taxes are filed within certain time periods. But what if there are more……
TX-LW Blogs
Liability for Prior Real Estate Owner’s Unpaid IRS Taxes
Liability for Prior Real Estate Owner’s Unpaid IRS Taxes You have to be diligent if you buy real estate from someone who owes unpaid taxes to the IRS. There are instances where the IRS can collect the prior owner’s taxes from you as the purchaser of the property. The recent Shirehampton Drive Trust v. JP……
The Affirmative Act of Tax Evasion
Taxpayers get behind on their taxes as they do every other type of liability. It happens. But owing the IRS unpaid taxes can be more than a civil problem. Non-payment can lead to criminal tax evasion charges. The United States v. Connerton, No. 3:17-cr-47 (D. Conn. 2019), case provides an opportunity to consider the “affirmative……
IRS Foreclose on Inheritance that is Jointly Owned?
What happens when someone inherits money from their parents, but they also owe the IRS? Can the IRS collect on the inherited assets? What if the taxpayer only inherited a fractional interest in the property? Can the IRS foreclose on the property to pay the back taxes? The court considered this in United States v.……
Can an Executor Who is Removed be Reappointed?
Texas probate courts have broad powers that can be used to protect estates. This includes the power to remove the executor for the estate. But what if the executor did not want to be removed? What remedies do they have? The Estate of Skima, No. 05-18-01288-CV (Ct. App.–5th Dist [Dallas]), case provides an opportunity to…
Taxpayer Not Entitled to In-Person Tax Collection Hearing
Dealing with unpaid taxes and the IRS bureaucracy can be challenging. Sometimes the key is to get in front of the right person at the IRS. But the IRS often refuses in-person meetings. The Roberts v. Commissioner, T.C. Memo. 2019-117, case provides an example of this. It involves the taxpayers request for an in-person collection……
Time for Probating an Intestate Estate in Texas
There are special rules that are involved when a Texas resident dies without a will. One set of rules involves heirship proceedings. This is a legal term that refers to the process of identifying who is entitled to inherit from someone who died without a will. Heirship proceedings are often filed several years after the…
Setting Off a Non-Tax Debt Owed by the IRS
If you owe back taxes but the Federal government owes you for some other matter, can the IRS offset the unpaid taxes with the amount the government owes you? The answer is more complex than one would think. The court addresses this in Tartt v. Commissioner, T.C. Memo. 2019-112. Facts & Procedural History The taxpayer……
Probate Disputes Involving Invalid Real Estate Transfers
Probate disputes often involve wills that intentionally omit or fail to provide for one or more children. The probate courts provide a forum for resolving these disputes. But the omitted children may not want to deal with the probate process. For example, they may just file deeds to transfer the decedent’s real estate to themselves…