Posted by Tom Regan | Mar 28, 2020 | 0 Comments
The IRS is making efforts to take some pressure off taxpayers during the COVID 19 pandemic. By now, most taxpayers are aware that the filing of their 2019 Form 1040, and the payment of the tax relating to that Form, are not due until July 15, 2020. This was a good first step for the IRS. Since then, the IRS issued News Release IR-2020-59 notifying taxpayers with outstanding tax obligations of extensions for dealing with some of these obligations and explaining relief for those involved in installment agreements and negotiating an Offer in Compromise.
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Posted by Tom Regan | Jan 27, 2018 | 0 Comments
There are three types of relief for an “innocent spouse,” commonly referred to as: innocent spouse relief; separation of liability; and, equitable relief. The requirements of each of these forms of relief are discussed elsewhere in this blog. In this article, I focus on the significant difference...
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Posted by Tom Regan | Mar 14, 2017 | 0 Comments
I am often asked how long do I have to maintain records to protect myself against actions by the Internal Revenue Service? Along with that question comes the question about whether the IRS has the burden of proving a taxpayer owes the tax (assuming it met its burden when first assessing the tax) ...
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Posted by Tom Regan | Dec 08, 2016 | 0 Comments
The IRS must give a taxpayer written notice, sent by certified mail, at least 30 days before it takes any collection action like a bank levy or a wage levy. IRC Section 6331(d). In 1998, Congress added the requirement that the IRS advise the taxpayer of his or her right to a Collection Due Proces...
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Posted by Tom Regan | Aug 21, 2016 | 0 Comments
If you want the chance to discharge your individual income taxes in bankruptcy, in Minnesota, file your returns. This is still an option if you live in the Eighth Circuit (this includes Minnesota). It is not an option in some other circuits.
More courts are accepting or at least entertaining the...
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Posted by Tom Regan | Jun 23, 2016 | 0 Comments
The IRS appears to be more serious about pursuing and prosecuting companies that do not pay their employment taxes. The IRS's first step to address this problem with unpaid employment taxes is to contact these companies as early as possible, hoping this early intervention will prevent the misuse ...
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Posted by Tom Regan | Apr 30, 2014 | 0 Comments
The United States Supreme Court is considering an investor's objection to summonses issued by the IRS. United States v. Clarke, No. 13-301. Mr. Clarke, the investor, is arguing the IRS improperly issued summonses as retribution against him and his business partners for resisting an audit and tha...
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Posted by Tom Regan | Apr 09, 2014 | 0 Comments
Settlements in legal disputes between employers and employees can vary significantly depending on whether the amounts to be received are taxable. For example, two parties in separate lawsuits can each agree to a settlement of $500,000. But, because one settlement is taxable and the other is not taxable ...
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Posted by Tom Regan | Apr 05, 2014 | 0 Comments
This is the fifth article in a series dedicated to the rules regarding who qualifies as a “resident” of the State of Minnesota for tax purposes. Status as a resident of Minnesota is important as all Minnesota residents are subject to Minnesota individual income tax, estate tax, and sales and use ...
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Posted by Tom Regan | Mar 20, 2014 | 0 Comments
The U.S. Supreme Court recently refused to hear an appeal from the Ninth Circuit Court of Appeals in Knappe v. United States of America, 713 F.3d 1164 (9th Cir., 2013), cert denied, 134 S. Ct. 422 (2013). The issue was whether an estate could rely on the advice of a CPA as to when a return was due....
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Posted by Tom Regan | Mar 02, 2014 | 0 Comments
We regularly receive calls from people who tried to resolve their tax obligations through an Offer in Compromise, but the Offer was rejected. Some have submitted the Offer on their own and some have been represented by an accountant, CPA, or an attorney. The one thing all of these Offers had in common was that the amount offered had no basis.
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Posted by Tom Regan | Feb 09, 2014 | 0 Comments
We often receive telephone calls and e-mails from individuals and businesses who have been contacted by the IRS for a tax obligation owing and they don't know what to do. There are many options for dealing with these obligations. The correct option depends on the facts of the case. Unfortunately,...
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Posted by Tom Regan | Jan 06, 2014 | 0 Comments
An individual assessed the Trust Fund Recovery Penalty (TFRP) has the option to pay just a portion of the assessment to gain access to a court. This is different from the requirement for income taxes, which calls for payment, in full, of the tax, penalty, and interest, before a court can hear the case.
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Posted by Tom Regan | Apr 12, 2013 | 0 Comments
This is the fourth article in a series dedicated to using Section 530 of the Revenue Act of 1978 as protection for businesses that have been using independent contractors, in good faith, but are now facing an IRS or State of Minnesota audit of that practice. Section 530 may be 34 years old, but ...
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Posted by Tom Regan | Mar 05, 2013 | 0 Comments
This is the third article in a series dedicated to using Section 530 of the Revenue Act of 1978 as protection for businesses that have been using independent contractors, in good faith, but are now facing an IRS or State of Minnesota audit of that practice. Section 530 may be 34 years old, but it...
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Posted by Tom Regan | Feb 12, 2013 | 0 Comments
This is the second article in a series dedicated to using Section 530 of the Revenue Act of 1978 as protection for businesses that have been using independent contractors, in good faith, but are now facing an IRS or State of Minnesota audit of that practice. Section 530 may be 34 years old, but i...
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Posted by Tom Regan | Jan 24, 2013 | 0 Comments
In her annual Report to Congress, Nina Olson , the Taxpayer Advocate, pointed out that the IRS is under-utilizing the Effective Tax Administration (ETA) Offer in Compromise (OIC) program. The IRS accepted an average of only 27 ETA OICs per year.
The ETA program is designed as an alternative to t...
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Posted by Tom Regan | Jan 03, 2013 | 0 Comments
There are many tax and social benefits to gifting a conservation easement. Unfortunately, some taxpayers are in too much of a hurry to make the contribution and do not complete all of the steps necessary to receive all of the tax benefits.
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Posted by Tom Regan | Dec 27, 2012 | 0 Comments
Doing well in a full time job is hard enough, but some people, for many reasons, spend significant time, energy, and money away from their “regular job” trying to build themselves a better future through real estate. They often feel like they spend every waking hour away from their regular job de...
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Posted by Tom Regan | Nov 27, 2012 | 0 Comments
This is the first article in a series dedicated to using Section 530 of the Revenue Act of 1978 as protection for businesses that have been using independent contractors, in good faith, but are now facing an IRS or State of Minnesota audit of that practice. Section 530 may be 34 years old, but it...
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Posted by Tom Regan | Nov 06, 2012 | 0 Comments
I have been watching the tax cases dealing with building facade easements for insight into how the IRS and the courts are reacting to the significant deductions being taken by partners in real estate partnerships. These partnerships generally buy a building, develop it, and contribute a restricti...
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Posted by Tom Regan | Oct 29, 2012 | 0 Comments
Yes, under the right circumstances. Income taxes (not trust-fund or withholding taxes) are dischargeable in a Chapter 7 Bankruptcy if certain conditions are met.
Has it been more than three years since the original due date, including extensions, for the return? If not, the taxes are not dischar...
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Posted by Tom Regan | Oct 16, 2012 | 0 Comments
Yes. You have many options for challenging an IRS assessment. Two common procedures are the Collection Due Process (CDP) hearing and the Collections Appeal Program (CAP) hearing, depending on the circumstances.
The CDP program gives you the right to appeal the filing of a Notice of Federal Tax L...
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Posted by Tom Regan | Sep 29, 2012 | 0 Comments
Yes. For the IRS, the procedure is known as an Audit Reconsideration Request (AR). The IRS has the discretionary authority to abate an assessment of any tax if it is in excess of your's liability. Reasons for an AR include: you did not appear for the audit; you moved and did not receive the corre...
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Posted by Tom Regan | Sep 25, 2012 | 0 Comments
Yes. An in-business corporation can compromise its outstanding employment tax obligations with the IRS. In past years, the IRS required that an Offer in Compromise (OIC) from an in-business corporation include not only its ability to pay, but also, the amount the IRS could collect from the respon...
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