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……
TX-LW Blogs
Avoiding IRS Wage Levy by Change of Status
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 &……
Independent Administration in Texas
What is an independent administration? An independent administration is a non-court administration. After a person has applied for letters testamentary and been qualified as independent executor by the court, the executor files an inventory of the estate’s assets and their appraised value, and a list of claims of the estate. Thereafter, the executor administers the estate…
Letters Testamentary in Texas
About Letters Testamentary in Texas After a person passes away and leaves behind property to be administered, one of the first steps is for a personal representative to apply to the probate court for letters testamentary or letters of administration. Why Letters are Needed Letters testamentary or letters of administration give the personal representative the…
What is a Family Settlement Agreement?
About Family Settlement Agreements in Texas Family settlement agreements are used to resolve probate litigation without trial. They can help avoid litigation costs and uncertainty associated with trial. Family settlement agreements can be used to resolve a number of probate disputes, such as will contests, will construction suits, claims and trust modifications, etc. They can…
IRS Cannot Collect Taxes Discharged in Bankruptcy
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……
Can I Deduct My Clothing Costs?
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……
Probate and Accessing a Safe Deposit Box in Texas
In our last article, we wrote about how to probate an estate for a missing person and prior to that we wrote about lost wills. In response to these articles, one of our readers asked several questions about safe deposit boxes in Texas. This is another topic worthy of consideration. Texas’ estate laws address safe deposit…
The Ins and Outs of the IRS’s Bank Deposit Analysis
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……