The IRS offer in compromise program provides taxpayers with a remedy for settling back taxes. It can provide taxpayers with a much-needed fresh start. Congress has changed the rules for offers. One change is that offers are deemed accepted if the IRS does not reject them within two years. This raises the question of how……
TX-LW Blogs
The Term “Personal Property” in a Will Includes Bank Accounts
When a loved one dies, the surviving family members often find that the decedent’s will included terms that they do not agree with. This may be due to family dynamics, a sense of entitlement, or simply a differing view of who should inherit. These situations often lead to probate disputes. The In re Estate of…
Making Voluntary Payments to the IRS
For those who owe the IRS back taxes, the decision as to how to pay the IRS raises a number of concerns. One such concern for those who owe taxes for several different tax years or several different types of taxes, is what year and tax account the payments are applied to. Typically taxpayers get……
Unwinding a Stock Sale using the Claim of Right Doctrine
If you sell stock for a large gain in one year, can you later go back and get credit for the tax paid in the earlier year using the claim of right doctrine? Is the claim of right doctrine a mechanism for unwinding a stock sale? The court addresses this in Heiting v. United States,……
What County do you File a Probate Application in Texas?
What county do you file a probate application in for a Texas probate? The general rule is you file the application in the county in which the decedent resided. But this may not always be the case. The In re Estate of Griffith, No. 05-19-01144-CV (Tex. App.–Dallas [5th Dist.]), provides an example. Facts & Procedural…
Juror in Tax Crime Case Removed for Religious Belief
What do you do if you are being tried for a criminal tax charge and the court removes one of the jurors for saying that you should be found not guilty? What if the juror is removed by the court because the Holy Spirit told him that you were not guilty given the evidence presented? ……
IRS Can Avoid Bankruptcy Collection Hold
One of the benefits of filing bankruptcy is that creditors are precluded from taking collection actions. When a taxpayer who owes unpaid taxes to the IRS files for bankruptcy, this collection hold applies to the IRS. But what if the IRS could simply file a motion and avoid the collection hold? This is exactly what……
Are Wages Paid to Foreign Researcher Taxable in the U.S.?
If a researcher comes to the U.S. on an Exchange Visitor J-1 Status visa and is paid wages for research, are the wages taxable income? The answer is “maybe” according to Baturin v. Commissioner, 153 T.C. 10 (2019). Facts & Procedural History The taxpayer is a Russian citizen. He earned $75,000 of wages for performing……
Settling Unpaid Taxes With Sporadic or Seasonal Income
Sporadic or seasonal income can make it difficult to settle back taxes with the IRS. For example, if you have a large one-time payment that is not likely to continue, can the IRS consider this in evaluating how much you can pay the IRS? The court addresses this in Margolis-Sellers v. Commissioner, T.C. Memo. 2019-165……