If you owe the IRS back taxes but want to buy real estate or some other type of property, can you form a legal entity and use it to acquire property and thereby put the property beyond the IRS’s reach? The court recently addressed this in United States v. Jones, No. 8:17-cv-2389-T-24 AEP (M.D. Fla.……
Tag: Tax Relief
IRS Refuses to Enforce Lien, Leaving Taxpayer Without Recourse
If the IRS has a superior lien on real estate, it should enforce its lien and apply the sales proceeds to reduce the taxpayer’s unpaid taxes. But what if there is a junior lien that acquires the real estate first? Can the IRS work out a deal with the junior lien holder and divert a……
Managing IRS Debts With Retirement Account Assets
Retirement accounts can present a number of challenges when trying to resolve an IRS debt. The IRS considers a retirement account as an asset in its collection analysis. The recent Scanlon v. Commissioner, T.C. Memo. 2018-51, court case provides an opportunity to consider the impact of retirement assets on IRS collection matters. The Facts &……
About the IRS Certificate of Discharge
The IRS’s lien for unpaid taxes attaches to all property owned by the individual. This can prevent the individual from selling or transferring their property or refinancing the property. There are several potential remedies that can help in this situation. One of these remedies is the IRS certificate of discharge. The IRS Certificate of Discharge……
Can the IRS Collect from a Single-Member LLC?
When trying to settle a tax debt with the IRS or manage the collection process, there are often questions as to whether the IRS can collect from a legal entity owned by the taxpayer. This often comes up in the context of a limited liability company that has one owner. You may be surprised to……
A Closer Look at Innocent Spouse Relief
Innocent spouse relief allows one spouse or ex-spouse to be relieved of liability for an income tax incurred during the marriage. This relief can provide a much-needed lifeline to taxpayers who are divorced or contemplating divorce. Injured Spouse Relief is not Innocent Spouse Relief Before considering the innocent spouse rules, it is helpful to consider……
Congress Provides Significant Relief for Back Taxes
There are winners and losers when it comes to the recent tax changes proposed by Congress. As it turns out, those who owe back taxes to the IRS may be in the winner category. The proposed changes will significantly increase the amount of income that is beyond the IRS’s reach. If the legislation is passed……
Making the IRS Pay for Unlawful Collection Activities
Taxpayers often feel helpless when it comes to the IRS. We hear this from clients when there is some real or perceived injustice involving the IRS. While the IRS and IRS employees have a lot of power, they are subject to the law. The law provides taxpayers with several remedies when they are harmed by……
The IRS Levy, What You Need to Know
If you owe the IRS back taxes, you need to know about the IRS levy. This is the primary tool the IRS uses to collect unpaid taxes. About the IRS Levy The word “levy” is a legal term that refers to the process of taking property. Creditors are able to levy on property to satisfy……