Taxing, Briefly
Assessment

Statutes of Limitation on Assessment and Collection

One of the most common questions I am asked by taxpayers is “How long can the IRS try to collect my liability?” It’s a good question, and one that would seem to have a quick, easy answer. Judging purely by the length of this article, however, the answer is never as simple as it might seem. On Statutes of Limitation on Assessment and Collection With the full understanding that “It depends” is the least satisfying

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Taxing, Briefly
Enforced Collection

Taxing, Briefly: Will the IRS Take My House?

I met a new client about a month ago.  I was excited. It was the first in-person meeting I’d had for over a year due to COVID.  The client had settled a lawsuit, and the settlement income—though taxable—had been reported incorrectly on her Form 1099-MISC, so that the IRS got it into its administrative head that it was subject to self-employment income. It wasn’t. The client’s total liability would have been about $10,000, which was

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Taxing, Briefly
Abuse of Discretion

The IRS Collection Process – Taxing, Briefly

The Basic Principles of the IRS Collection Process In our previous post, we discussed how audits are performed and your available options throughout the examination process.  Once the audit is complete, and all administrative and legal remedies are exhausted, how does the IRS actually collect taxes?  The first step in the IRS collection process is assessment. The IRS cannot collect a tax until it has assessed it. There are a bevy of rules surrounding assessments. 

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Procedural Issues
Books and Records

Procedural Considerations on Collection (Levies and Distraints) – Part Three: Enforcement of Levy

In the first article in this series of posts regarding the IRS’s enforced collection through levies, we discussed the IRS’s authority and limits thereto regarding levies and distraints. In the second article of this series on levies, we discussed the procedure requiring notice and hearing before a levy attaches.  In this third article in this series, we discuss the IRS’s enforcement of levies and distraints. Enforcement of Levy If a person (including an officer or

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Procedural Issues
Appeals

Procedural Considerations on Collection (Levies and Distraints) – Part Two: Notice and Hearing Before Levy

In the first article in this series of posts regarding the IRS’s enforced collection through levies, we discussed the IRS’s authority and limits thereto regarding levies and distraints. In this second article of this series on levies, we discuss the procedure requiring notice and hearing before a levy attaches.  In the third article in this series, we will discuss the IRS’s enforcement of levies and distraints. Notice and Opportunity for Hearing Before Levy The IRS

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Procedural Issues
Calling Bullshit on the Government

Procedural Considerations on Collection (Levies and Distraints) – Part One:  Introduction to Levies

To Bill’s credit, his call of the IRS’s bluff that they would actually try to collect his long delinquent tax debt has not resulted in any enforced collection action three years since he failed to report capital gains on the sale of seven of his largest ostriches.  You had no love loss when the giant birds were sold, having been chased down and assaulted by two of their number in your younger and more vulnerable

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Challenging Levy

Reynolds v. Commissioner (T.C. Memo. 2021-10)

On January 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Reynolds v. Commissioner (T.C. Memo. 2021-10). The issue presented in Reynolds was whether the IRS possessed the collection authority under IRC § 6201(a)(4) to undertake administrative collection action to collect restitution-based assessments (RBAs). Note on “Precedent” It should be noted that the argument the petitioner made in Reynolds was “squarely rejected” in the case of Carpenter v. Commissioner, 152 T.C.

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Statutes of Limitation on Assessment and Collection

One of the most common questions I am asked by taxpayers is “How long can the IRS try to collect my liability?” It’s a good question, and one that would seem to have a quick, easy answer. Judging purely by the length of this article, however, the answer is never

Read More »

Taxing, Briefly: Will the IRS Take My House?

I met a new client about a month ago.  I was excited. It was the first in-person meeting I’d had for over a year due to COVID.  The client had settled a lawsuit, and the settlement income—though taxable—had been reported incorrectly on her Form 1099-MISC, so that the IRS got

Read More »

The IRS Collection Process – Taxing, Briefly

The Basic Principles of the IRS Collection Process In our previous post, we discussed how audits are performed and your available options throughout the examination process.  Once the audit is complete, and all administrative and legal remedies are exhausted, how does the IRS actually collect taxes?  The first step in

Read More »

Reynolds v. Commissioner (T.C. Memo. 2021-10)

On January 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Reynolds v. Commissioner (T.C. Memo. 2021-10). The issue presented in Reynolds was whether the IRS possessed the collection authority under IRC § 6201(a)(4) to undertake administrative collection action to collect restitution-based assessments (RBAs). Note on

Read More »