If you can’t pay your past taxes, don’t wait for the IRS to assign a third party to the task of private debt collection. Such third parties may utilize aggressive techniques that border on harassment.
Seinfeld fans may remember a reference to a character on the show named Al Yeganeh, nickmaned the “Soup Nazi.” The reference actually has a counterpart in real life: A business in Staten Island called Soupman, Inc. licenses the name and recipes of that Seinfeld character.
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 Internal Revenue Service was recently granted a tax collection power that may surprise readers: passport restrictions.
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 bankruptcy, and they can seriously damage your credit score.
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 packaging.
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 collection matters. If the taxpayer contacts the IRS and makes arrangement for paying the debt by Dec. 31, 2016, the account will stay in the IRS office, per the agency.
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 trigger tax penalties.
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 owed to the IRS. Perhaps the repayment of unemployment compensation or an excess advance premium tax credit caught an individual off balance.