Our Federal income tax laws often build upon the presumption that seemingly adverse parties are actually adverse. Our tax laws do not always account for instances where the parties are actively working in concert to reduce the IRS’s cut. Transfers and payments made in relation to divorce are an example. With our tax laws, it……
Category: Tax Law
Does an IRS Audit Waive a Defect in Tax Return?
When it comes to technicalities in the tax law, the failure to comply with some technicalities can be overcome. Others cannot. As a general rule, the courts evaluate tax disputes involving technicalities based on the policy underlying the technicality versus fairness for requiring strict compliance. If the policy for the technicality is important, the court……
Is Homeless a Requirement for an IRS Payment Agreement?
Indifference. It is generally defined as “lack of interest, concern, or sympathy.” Those who are unfortunate enough to work with the government employees to resolve a case or matter often have a profound understanding of this term. This is true of just about every government function–be it local, state, or federal. When it comes to……
The IRS & the Covid-19 Slowdown
The IRS has a track record of halting collection actions when there is a disaster or other major event. As tax attorneys in Austin we saw this in the aftermath of the Hurricane Harvey storms. While a temporary stop to collections can be helpful, it can also cause other problems. If you owe back taxes……
IRS Ignore Your Offer in Compromise? What’s Next?
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……
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,……
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……