CNN recently released a fascinating look at the computers the IRS uses in “IRS Says It’s Using Technology From JFK’s Time.” IRS Commissioner John Koskinen states that the IRS computer system is “like driving a Model T that now has a great GPS System and wonderful sound system.” It is common knowledge that the Internal… Continue Reading
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How to get the IRS to pay your legal fees
Posted in Tax PracticeWhat can you do when the IRS is misbehaving and it directly affects you? You will have to fight them, but the law allows you to recover your litigation costs if you win. As many know, the IRS has had a very troubled recent past (i.e. Lois Lerner). Those problems keep getting worse, especially with IRS budget cuts. … Continue Reading
Does Filing for Bankruptcy Really Give You Tax Relief?
Posted in Criminal Tax, Tax Court, Tax PlanningWhen times get desperate and tax liabilities pile up – filing for bankruptcy is an option many people consider. Taxes are “dischargable” in bankruptcy, but there are important rules you need to know. TIMING Taxes are only dischargable if they have reached a certain vintage. Here are the basic rules: More than three years must… Continue Reading
IRS Takes Money From Dead Mom to Pay For Son’s Tax Debt
Posted in Tax PlanningMost people have some strong feelings about how they want their assets to be distributed upon their death. Some want to give their money to their kids, others are charitably inclined. However, I would guess that very few would like to see their money go to the IRS to pay the debts of their children. Imagine working a… Continue Reading
Is the Internal Revenue Service Lying?
Posted in Criminal TaxDo you remember the controversy where the IRS was accused of targeting and unfairly auditing the Tea Party? In an article Sunday from CNN’s Political Ticker by Sara Fischer, the IRS has claimed that it is unable to recover subpoenaed emails from former IRS official Lois Lerner. The reason given is a “computer crash.” A firestorm has erupted in… Continue Reading
Do we really have a “Taxpayer Bill of Rights”?
Posted in IRS Collection, Tax PracticeThe IRS announced the adoption of a “Taxpayer Bill of Rights” Tuesday. I have listed the rights below along with my commentary. Just like our U.S. Constitutional Rights, these “rights” are and will be watered down. All of us have certain rights we feel strongly about. For instance, folks here in Texas are very concerned about guarding their rights… Continue Reading
Application for Tax Exempt Status To Be Eased by IRS – Except for the Tea Party
Posted in IRS CollectionIn 2013, the IRS revealed that it had selected “social welfare” groups (like the Tea Party) applying for tax-exempt status for closer scrutiny. That investigation is still ongoing and it has given the IRS a black eye. The Tea Party is a 501(c)(4) organization – not your traditional 501(c)(3) which must be “organized and operated exclusively for religious, charitable, scientific,… Continue Reading
Once you start bribing – I guess it is hard to stop
Posted in UncategorizedNews came out last week that chiropractor Stephen Jacobs of Lowell, MA is in hot water with the feds. Dr. Jacobs allegedly paid an IRS auditor $5,000 in cash to ignore two deductions he improperly took on this 2011 income tax form. These deductions, allegedly, were in fact payments Jacobs made to two different women… Continue Reading
Gentleman’s Club Owner Hit With Fraud Penalty
Posted in Criminal TaxA new Tax Court decision just came out – Potter v. Commissioner, TC Memo 2014-18. The case involved a “gentleman’s club” owner in Michigan. In December 2006 IRS special agents engaged in an undercover investigation of Potter’s Pub, posing as buyers interested in acquiring the business. John Potter assured the agents that Potter’s Pub was… Continue Reading
Qualified Domestic Relations Orders: Little-Known Issues Involving Dividend Pass-Through Elections And Same-Sex Spouses
Posted in UncategorizedSpecial thanks to guest author Jason Luter for this post. As most family law practitioners are aware, ERISA and the Internal Revenue Code (“IRC”) do not permit a participant in a retirement plan to assign or alienate his/her interest in that plan to another person. These rules are intended to ensure that the participant’s retirement benefits are… Continue Reading
Expansion of IRS Innocent Spouse Relief
Posted in Tax Court, Tax Planning, Tax PracticeOn September 13th the IRS issued a new revenue procedure that significantly changes equitable innocent spouse relief. I wrote an article that was published Tuesday in the Texas Bar Association’s Texas Tax Lawyer . I have excerpted part of the article which discusses the significant changes. Change #1: Greater deference is given to the presence of… Continue Reading
What You Need to Know About the IRS Shutdown
Posted in UncategorizedIt is big news right now that the US government is facing partial closure. The partisan politics in Washington are going to affect most Americans whether they expect it or not. My list of the tax implications to the shut down is: Approximately 90 percent of IRS employees are not at work today. If you… Continue Reading
IRS Phishing Fraud – What Can You Do?
Posted in Criminal Tax, Tax PracticeEvery year the IRS publishes there Dirty Dozen tax scams. These are common scams that taxpayers face, but are most prevalent now during tax season. Number two on the list is a scam called Phishing. Phishing is a scam typically carried out with the help of unsolicited email or a fake website that poses as a legitimate… Continue Reading