In recent years, the U.S. government has taken steps to increase enforcement measures to allow the IRS to collect delinquent taxes. This includes adding Sec. 7345 to allow the IRS and U.S. State Department to revoke or deny passports of individuals with seriously delinquent tax debts. In order to revoke or deny a passport, the…
Category: IRS Collections
About IRS collections, including levies, liens, and garnishments.
Defeating the IRS Passport Certification Notice
Congress amended the code to allow the IRS to certify passports. This added another tool the IRS can use to get those with IRS back taxes to contact the IRS and, in some cases, to pay the IRS. As with most new laws, there are a number of open questions about how and when the…
IRS Collects Taxes Discharged in Bankruptcy
When the governmet confers a benefit, it invariably puts conditions on the benefit. Congress will often modify the conditions over time. The result can be a very nuanced set of rules that, to the uninitiated, can seem nonsensical and impossible to descipher. The rules that allow taxes to be discharged in bankruptcy fall into this…
The IRS & the Covid-19 Slowdown
The IRS has a track record of halting collection actions when there is a disaster or other major event. As tax attorneys in Austin we saw this in the aftermath of the Hurricane Harvey storms. While a temporary stop to collections can be helpful, it can also cause other problems. If you owe back taxes…
Making Voluntary Payments to the IRS
For those who owe the IRS back taxes, the decision as to how to pay the IRS raises a number of concerns. One such concern for those who owe taxes for several different tax years or several different types of taxes, is what year and tax account the payments are applied to. Typically taxpayers get…
IRS Can Avoid Bankruptcy Collection Hold
One of the benefits of filing bankruptcy is that creditors are precluded from taking collection actions. When a taxpayer who owes unpaid taxes to the IRS files for bankruptcy, this collection hold applies to the IRS. But what if the IRS could simply file a motion and avoid the collection hold? This is exactly what…
Can the IRS Reach Assets in Land Trusts?
Can the IRS reach an interest in real property held in a land trust? If so, what happens if the taxpayer sells the property? Can the IRS recoup the land from the new buyer or is the IRS limited to the proceeds received? The court addresses this in United States v. Harold, No. 2:18-cv-10223 (S.D.…
IRS Foreclose on Inheritance that is Jointly Owned?
What happens when someone inherits money from their parents, but they also owe the IRS? Can the IRS collect on the inherited assets? What if the taxpayer only inherited a fractional interest in the property? Can the IRS foreclose on the property to pay the back taxes? The court considered this in United States v.…
Taxpayer Not Entitled to In-Person Tax Collection Hearing
Dealing with unpaid taxes and the IRS bureaucracy can be challenging. Sometimes the key is to get in front of the right person at the IRS. But the IRS often refuses in-person meetings. The Roberts v. Commissioner, T.C. Memo. 2019-117, case provides an example of this. It involves the taxpayers request for an in-person collection…
Setting Off a Non-Tax Debt Owed by the IRS
If you owe back taxes but the Federal government owes you for some other matter, can the IRS offset the unpaid taxes with the amount the government owes you? The answer is more complex than one would think. The court addresses this in Tartt v. Commissioner, T.C. Memo. 2019-112. Facts & Procedural History The taxpayer…