If a taxpayer wants to sell property subject to an IRS lien and the IRS agrees to allow the sale, can the taxpayer designate what tax period the proceeds paid to the IRS from the sale are to be applied? The IRS attorneys address this in CCA 201916009. Facts in CCA 201916009 In CCA 201916009,……
TX-LW Blogs
The Limits of the IRS’s Levy
If the IRS issued a levy notice to a third party to attempt to collect a tax debt, the third party is generally obligated to pay over to the IRS any money owed to the taxpayer. But how long does this obligation continue? Does it apply to future payments that the third party becomes indebted……
Appointing a Receiver to Sell Jointly Owned Property
When co-owners of property are at odds over the property, it may be necessary to have a court appoint a receiver to manage and/or sell the property. This remedy isn’t always available, as evidenced by the In re Estate of Martinez, No. 01-18-00217-CV (Tex. Ct. App.–Houston 2019) case. Facts & Procedural History The case involves…
Using the CDP Hearing to Challenge Tax Penalties
There are times when it is important to pick the right method of approaching a problem with the IRS. The VICA Technologies v. Commissioner, T.C. Summary Opinion 2019-7, case provides an example of contesting penalties in an IRS collection due process hearing. Facts & Procedural History The taxpayer was assessed a Sec. 6698(a) penalty for……
Challenging Probate Court’s Order to Settle Lawsuits
If a probate court appoints a temporary administrator and approves a settlement for outstanding lawsuits against the estate, heirs with an interest in the estate may have limited options for challenging the decision to settle the lawsuit. The Chabot v. Estate of Sullivan, No. 03-17-00865-CV (Tex. App.-3d Dist [Austin] – 2019), case provides an example.…
IRS Pursuit of Additional Taxes After Bankruptcy
One of the benefits of bankruptcy is that it provides some certainty as to what is owed. If successful, the bankruptcy process can provide debtors with a fresh start. But things get complicated when taxes are involved. The recent Breland v. Commissioner, 152 T.C. 9 (2019), case provides an example whereby the IRS was allowed……
Planning for Special Needs Trusts
Special needs trusts can provided additional resources for disabled minors and adults. Special care has to be taken in planning for these trusts. The recent Estate of Mendard, No. 14-18-00434-CV (Tex. App. — Houston [14th Dist.] 2019) provides an example. It involves a special needs trust that ended up owning a house that the disabled beneficiary’s…
Voiding a Common Law Marriage After Death
Will contest suits often involve children whose inheritance is being claimed by a third party who asserts to be common law married to the childrens dead parent. This raises questions as to whether the new spouse is entitled to all or some of the decedent’s assets. The recent Estate of Durrell, No. 13-17-00431-CV (Tex. App. – Corpus…
What if You Cannot Talk or Sign a Will?
What if You Cannot Talk or Sign a Will? Generally, for a will to be valid, one has to communicate their wishes in a will and the will has to be signed. This begs the question as to how someone who cannot speak or sign a will can execute a valid will. The court addressed this…