Tag: IRS

Can the IRS Take Your Passport?

IRS passport denial

The IRS can’t seize your passport, but they can let the State Department know if you have seriously delinquent tax debt. Once this happens, the State Department can deny your passport renewal or revoke your current passport. Before this happens, you’ll have several opportunities to resolve your tax problems and keep your right to carry… Read more »

The Federal Payment Levy Program

FPLP

What is the Federal Payment Levy Program (FPLP)? The Federal Payment Levy Program (FPLP) gives the IRS the right to seize a portion of certain payments you receive from the government. If you are a federal employee, a government contractor, or receiving Social Security benefits, your payments could be offset under the FPLP. 

How to Prevent a Tax Seizure

How to Prevent a Tax Seizure

If you refuse, ignore or fail to pay your federal income taxes, the Internal Revenue Service has the legal right to seize your property. Property levies are the most severe action taken by the IRS. In case you are behind on the tax debt, you should understand how tax seizures work and how you can… Read more »

How the IRS Proves You Have Committed Tax Fraud

Methods of Proof of Tax Fraud When the IRS decides to pursue a criminal tax investigation into a taxpayer, it is typically because they believe said taxpayer has committed some sort of tax fraud. Usually that is underreporting of income, overstating their deductions, or not reporting certain income at all.  In order for the IRS… Read more »

Negligence Versus Tax Fraud: How the IRS Tells the Difference

Negligence v Tax Fraud

What is the Difference Between Negligence and Tax Fraud? The American taxpayer’s fear of the IRS is very similar to our fear of the dentist: irrational and rooted in nothing more than making mountains out of molehills. (most of the time). What do I mean by this? Well think about it.  Think back to the… Read more »

What Is The Innocent Spouse Rule’s Equity Requirement?

equitable relief doctrine

Definition of Innocent Spouse Rule’s Equity Requirement In previous blogs we have covered innocent spouse relief and its three objective requirements for approval (understatement of liability, no actual knowledge, and less than two years from the first collection activity).  But if the IRS really wanted to split hairs and deny innocent spouse claims, they could… Read more »

What Are The Elements Of The Innocent Spouse Rule?

How to Get Out of a Joint Tax Debt Using Innocent Spouse If the IRS had a motto, it would definitely be show me the money. The Service will collect every dollar of tax revenue that it can using any means at its disposal. However, there are always exceptions, and the elements of the innocent… Read more »

Doubt as to Collectibility Offers

Requirements for Doubt as to Collectability Offers in Compromise Before approving any Offer in Compromise (except DATL), the IRS must first calculate “Reasonable Collection Potential” (RCP), and determine if a “Doubt as to Collectability” exists.  If there is a Doubt-as-to-Collectability, the IRS may accept the Offer in Compromise.  Otherwise, the DATC Offer will be rejected…. Read more »

My Spouse Screwed Me Over….Now What?

  Making a Case for IRS Innocent Spouse Relief We have tried to drill it in hard that when you sign a return, you are responsible for everything that is on that return, regardless of who prepared it.  So it should come as no shock that the same applies for a joint return with your… Read more »

EITC Due Diligence Penalties Expand to Other Tax Credits

In February 2014, we published a blog detailing the IRS’s new campaign to up the ante when enforcing the Earned Income Tax Credit (EITC) duty of due diligence.  At that time, the Internal Revenue Service penalized tax preparers who failed to meet their duty of due diligence $50 per return.  Now, that penalty is a… Read more »