The IRS assesses millions of penalties against taxpayers each year in an effort to encourage voluntary compliance with the tax law. Penalties may be based on the failure to pay tax when due, failure to timely file a tax return, substantial inaccuracies in tax filings, or some other noncompliance with the tax law. Occasionally, the IRS will reduce or abate penalties upon request where the taxpayer establishes appropriate grounds for relief. [Read more…]
Most people know the government can go after taxpayers who owe back taxes. However, few individuals realize that both New York State and the IRS now have the ability to restrict delinquent taxpayers’ ability to travel, whether by suspending their driver’s licenses or by revoking their passports. [Read more…]
Since 1998, taxpayers have had an important right available to them to help them protest an IRS collection action and settle a tax debt. They have the right to request a Collection Due Process (CDP) hearing. CDP hearings can provide tremendous benefits, providing a fair and equitable process for both the IRS and taxpayers. They provide an opportunity to discuss the appropriateness of the collection action and whether alternative methods are available. A CDP hearing also provides temporary relief from the IRS collection efforts in most cases, allowing the taxpayer time to resolve the matter voluntarily. However, there are a number of things taxpayers must know in order to take advantage of CDP hearings and not lose their rights. [Read more…]
The IRS recently announced plans to begin private collection of certain overdue federal tax debts as early as the spring of 2017. It has already awarded contracts to four companies to participate in the collection program. Under a law passed in December 2015, the IRS is required to use private collection agencies for the collection of outstanding inactive tax receivables. [Read more…]
Join us on August 18th, at LIU Post’s Civil & Criminal Tax Controversy Updates – 2016. The LIU program is an annual event for private and government tax professionals to discuss current events and best practices in federal and New York State cases involving criminal and civil tax penalties and enforcement.