An individual who receives an over payment from a governmental agency generally does not have a legal claim to retain those funds. This general principle also applies to erroneous tax refunds. The concept of keeping a ledger in the black also applies to tax...
Back Taxes or Tax Debt
Could a tax dispute ruin your vacation plans?
The Internal Revenue Service was recently granted a tax collection power that may surprise readers: passport restrictions.Specifically, a 2015 federal law called the Fixing America’s Surface Transportation Act, granted the IRS with certain collection powers for...
Talk to an attorney about options for handling your tax debt
Tax liabilities are the category of debt that has the potential to haunt you. The IRS has strong collection tools, such as filing a notice of federal tax lien against your property or garnishing your wages. In addition, taxes are typically not discharged in...
IRS collection matters take on another component: Mediation
A new IRS mediation program applies to taxpayers in Connecticut and nationwide. It is called the Fast Track Mediation Collection program. With respect to IRS collection matters, the program may prove to be useful to taxpayers or it may be more of the same but with new...
IRS collection matters: make arrangements prior to year’s end
A change is coming soon in Connecticut and elsewhere regarding the method used by the IRS with respect to its tax collection accounts. Beginning in 2017, there will be a switch to using a private collection company for most individual income tax and possibly other IRS...
Will a tax mistake result in penalties from the IRS?
In our last post, we noted that interest and penalties generally accrue until a tax debt is paid off, even if the taxpayer has negotiated an installment or other type of repayment plan with the IRS. This begs the question of whether all tax disputes or miscalculations...
Do penalties accrue during an installment agreement with the IRS?
When liability over a disputed tax is at issue, our tax law firm has helped many clients prepare a strong case. Yet IRS controversies arise over more than just different interpretations of the Tax Code. For example, an individual may simply be unable to pay back taxes...
Did the IRS fairly evaluate the collectability of your tax debt?
Our tax firm has helped many clients negotiate with the IRS. An administrative settlement can be a win for both parties: a taxpayer is able to move forward, and the IRS saves the time and expense of going to Tax Court or a federal district court.Depending on the...
Ask an attorney to review your amended tax return
Our tax law firm understands the importance of keeping accounting and legal advice separate. Commingling these two areas might lead to trouble.For example, errors might be discovered after a tax return has been filed. The accountant who prepared the original tax...
Can innocent spouse relief be utilized in your divorce?
Readers may know that both assets and debts of the marital estate must be divided when a couple is going through a divorce. That approach reflects the general principle that a court views a married couple's income and liabilities as jointly owned or owed,...