The IRS sends out a lot of mail. Any letter from the IRS should be taken seriously, but some have more legal ramifications than others. Here are three of the most important IRS letters – what they mean, and how to respond: 1. Notice of Deficiency. The IRS sends this letter out as [...]
Tax Court
IRS audits can leave your stomach in a knot and your head in your hands, often because you feel innocent of the changes the IRS is proposing to your tax return. Notice I said proposing. An IRS audit is not simultaneously the beginning and end of your defense, with the auditor playing the role of [...]
The ability to file a collection due process appeal is probably the most powerful right you have in defending against IRS enforcement by levy or seizure. Due process, in the context of IRS collections, means the right to reach resolution of your case before the IRS can take your property, and the right to have [...]
If you owe the IRS back taxes, it is not always enough to just be “right” when negotiating with the government. You need to be right, but you also need to be in the right place and working with the right IRS person. This increases the likelihood of a fair and impartial review of your case. Getting [...]
Bankruptcy is a powerful tool in solving IRS problems – but can it stop the IRS from auditing you? A centerpiece of bankruptcy law is the concept of an “automatic stay.” The automatic stay stops creditors from calling and writing to enforce or collect a debt from you. The “stay” on your creditors – including the IRS [...]
Can you prove expenses in an IRS audit without receipts and checks? Thanks to the tax case of Cohan v. Commissioner,39 F. 2d 540 (2d Cir. 1930), the IRS will allow expenses even if receipts and checks are missing. All you need is a reasonable basis to recreate the expense and credible testimony that you actually spent the money. [...]
