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 [...]
Tax Court
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. [...]
It is common to feel like you are not getting a fair shake from an IRS auditor. Frustration mounts with perceptions that the auditor is unreasonable. No matter what you do, the auditor cannot be satisfied. You are told you owe money to the IRS, and you know you don’t. There is good news [...]
I have seen a stream of new calls from readers who went through an IRS audit and are receiving IRS collection notices for amounts they probably do not owe. Although they disagreed with the audit, they did not understand the need to take the dispute to IRS appeals or Tax Court. As a result, the [...]
A common problem with IRS audits is not seeing eye to eye with the auditor. The auditor sees the case narrowly, while you see the big picture. You know you incurred that expense or did not have unreported income, but the auditor’s criteria is difficult to satisfy. Here are some ways to get problem IRS [...]
