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……
Category: Tax Law
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……
Can the IRS Disclose My Tax Return?
Clients often ask us whether the IRS can disclose information that they provided to the IRS. The short answer is “no,” but there are a number of exceptions. This article examines the rules that prohibit IRS employees from disclosing taxpayer information and some of the remedies that are available if the IRS violates the rules.……
Can the IRS Keep My Refund to Pay My Spouses Tax Debts?
Will you receive a tax refund from the IRS if you marry someone who owes back taxes to the IRS? If the IRS keeps your refund for the current year to pay your spouse’s premarital tax debts, what rights do you have to recoup the current year refund? For the answer to these questions, we……
About the Trust Fund Recovery Penalty
Employers are required to withhold Social Security, Medicare, and income taxes from wages paid to employees. The withholdings are credited to the employee’s Social Security, Medicare, and income tax accounts. If these taxes are not paid over to the IRS and the IRS is not able to secure payment from the employer or the business……
About Filing Tax Returns Late
Statistics show thаt you are likely tо mіѕѕ a tax return fіlіng deadline аt some роіnt іn your lіfе. It happens. Life happens: wоrk, vасаtіоn, family circumstances, and even financial problems. These events can make it very easy to miss a tax filing deadline. When it happens tо уоu, here is what you need to……
What You Should Know About the IRS Settlement Program
If you owe the IRS you may be surprised to find out that the IRS may settle the debt for less than the amount owed. One way to do this is through the IRS offer in compromise program. Here is what you need to know about the offer in compromise if you owe back taxes……