In our May 30 blog post, we discussed the Internal Revenue Service’s efforts to target divorced spouses who fail to accurately report alimony payments as taxable income. This is part of a concerted effort to make up gaps in tax collection by targeting individuals who have supposedly skirted federal tax laws. Similarly, a recent reportcontinue reading…
Privatized tax debt collection stands to hurt taxpayers the most
When the Internal Revenue Service believes that someone has not paid his or her tax burden in full, the agency will likely issue a notice of deficiency. In essence, this means that IRS tax collectors will pursue a taxpayer to settle the outstanding bill. Although this is how tax collection has worked for quite somecontinue reading…
Newly divorced couples may be subjected to IRS scrutiny
When two people fall in love, old clichés would suggest that they have been struck by Cupid’s arrow. Conversely, it seems as though the Internal Revenue Service may be drawing back its bow and taking aim at newly divorced couples. A report from the Journal of Accountancy shows that the IRS is dedicating efforts to track downcontinue reading…
Federal tax debt: Now with more penalties?
Few people want to go through the experience of being notified of delinquent taxes by the Internal Revenue Service. Many of those who wind up in this situation might also be dealing with other financial issues, so tax debt would only add to existing anxieties. Depending on how — or if — the situation iscontinue reading…
Time limits for tax audits, collections aren’t always concrete
Many readers may have heard that they should keep paperwork from tax returns for three years. This rule of thumb is based on the idea that the Internal Revenue Service has three years to initiate a tax audit. Once this benchmark is reached, people might feel a sense of relief. Unfortunately, the 3-year window ofcontinue reading…