An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less than the full amount owed. Taxpayers who can fully pay the liabilities through an installment agreement or other means, generally won’t qualify for an OIC in most cases. For information concerning... Read More

Generally, the passive activity loss for the tax year isn’t allowed. However, there is a special allowance under which some or all of your passive activity loss may be allowed. The IRS real estate professional rules allow for a special passive activity loss rule for real estate professionals. See Internal Revenue Code section 469. Generally,... Read More

Transfers between spouses are generally nontaxable, but some exceptions exist. Generally, no gain or loss is recognized on a transfer of property from an individual to (or in trust for the benefit of) a spouse or, if the transfer is incident to a divorce, a former spouse. The following questions and answers describe more fully... Read More

Sometimes the IRS will send a withholding order to a taxpayers employer. This withholding order generally will lock in the taxpayer into the highest withholding possible. A withholding order is sometimes referred to as a lock in letter. Internal Revenue Code Section 3402 generally requires employers to withhold the proper amount of taxes from their... Read More

A taxpayer who has a lien from the IRS may question how to remove the IRS lien. A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. In addition, a lien is a legal claim against your property to secure payment of your tax debt, while a levy... Read More

If you do not qualify for innocent spouse relief, relief by separation of liability, or relief from liability arising from community property law, you may still be relieved of responsibility for tax, interest, and penalties through equitable relief. If you request any of these types of relief, and the IRS determines you do not qualify... Read More

The IRS has different filing requirements with respect to a particular entity. Partnerships and corporations have different standards for filing an information return or income tax return. A domestic partnership must file an information return, unless it neither receives gross income nor pays or incurs any amount treated as a deduction or credit for federal... Read More

IR-2021-59, March 17, 2021 The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days. “This continues to be... Read More

Virtual currency transactions are taxable by law just like transactions in any other property. Taxpayers transacting in virtual currency may have to report those transactions on their tax returns. Moreover, the taxation of virtual currency is a developing field of law. What is Virtual Currency? Virtual currency is a digital representation of value that functions... Read More

A variety of laws affect the collection statute expiration deadline. A brief summary of some of the various case actions that can suspend and/or extend a CSED follows. The general rule is that the IRS can only collection on a tax liability for ten years from the date of assessment of that tax liability. That... Read More