Innocent Spouse Relief- The Program This month, we will close our discussion on innocent spouse relief. In my first post on the subject, I gave a broad outline and talked about how to sever the joint tax liability between you and your spouse. In the last post, I walked through what qualifies for … [Read more...]
What to Do With an IRS Final Notice of Intent to Levy?
IRS Final Notice of Intent to Levy. Now What? In my prior post, I described how the IRS bills taxpayers. One of those dreaded letters is the final notice of intent to levy. If you see the following line on your IRS notice, sit up and take notice: Intent to seize your assets and notice of your right … [Read more...]
You Have Rights When Dealing with the IRS!
When dealing the the U.S. Government, you have rights such as the right against unreasonable search and seizure and the right to free speech as guaranteed by the Bill of Rights. Dealing with the IRS is no different but in addition to the rights guaranteed to you by the Constitution you have certain … [Read more...]
Being Audited? What are the Chances?
Good question. On average you have less than a one percent chance, as an individual, of being audited by the IRS. Don't get complacent though, that figure is only part of the story. Only when you crunch the numbers does a more nuanced picture emerge regarding your chances of being audited. First, … [Read more...]
Famous People Who’ve Filed Bankruptcy
Article I of the Constitution grants to Congress the power to establish uniform bankruptcy laws throughout the country. While initially a device for creditors to divide up a debtor's assets, over time bankruptcy has become more debtor friendly and now it is means for debtors to obtain a fresh start … [Read more...]
Bankruptcy Basics: The Chapters of Bankruptcy in a Nutshell
Filing for bankruptcy is more than merely filing a petition in court; the Bankruptcy Code provides for five different chapters under which a debtor can file. Much work has to be done before filing to select the appropriate chapter for the client as each chapter has its own unique rules and … [Read more...]
Medical Marijuana Businesses Run Afoul of the Internal Revenue Code
Beck v. Commissioner, T.C. Memo. 2015-149 Filed August 10, 2015. Certain states may have legalized medical marijuana but Federal law still lists it as a controlled substance. This means that medical marijuana dispensaries are still subject to punitive rules that apply to other forms of drug … [Read more...]
Business Planning Using Your Rear-View Mirror
A colleague of mine uses the phrase, "See me before you need me," in her advertising which makes me think of another phrase, "Failure to plan is planning to fail." Ok, maybe that last phrase may be a bit overblown as most of us go through life on a minimum of planning, for example my daily wardrobe, … [Read more...]
Tax Court Double Feature; Two Taxpayers Get in Trouble Over Treatment of Alimony Payments
Two recent Tax Court opinions highlight the danger of ignoring the Internal Revenue Code 71 when handling spousal support issues. Christina Mehriary v. Commissioner, T.C. Memo 2015-126, issued July 9, 2015 Taxpayer tried to deduct the transfer of the home she was given in the divorce as an … [Read more...]
I Fought the Law and the Law Won: Error by Tax Preparer Does Not Absolve Taxpayer
In Devy v. Commissioner, T.C. Memo. 2015-110, a recent tax court opinion, Mr. Devy found out the hard way that his trust in his tax preparer, aptly named Tax Whiz, was misplaced. Tax Whiz prepared his return and claimed for him an education credit of $2,500. After taking into account the credit, … [Read more...]
