The 10th Circuit Court of Appeals just dismantled bankruptcy law for late-filed returns. When you don’t prepare your own return and the IRS has evidence that you owe taxes they can assess the tax against you without your agreement under 26 USC § 6020(b). This assessment is called a “Substitute for Return” (SFR). But, this is […]
How to eliminate your IRS tax debt
There are only 4 ways of eliminating your IRS debt: 1) Paying it, 2) Waiting until the statute of limitations for collection has expired, 3) Successfully presenting an Offer in Compromise or 4) Discharge in Chapter 7 or Chapter 13 Bankruptcy. Each of these carries positive and negative consequences to you. If you pay it, […]
How to prove to the IRS that you are uncollectible
The proof required to show you are uncollectible & can’t pay so the IRS should cease active collection will be revealed with the Form 433F or Form 433A (& the supporting documentation). This takes a lot of work. Essentially, the IRS subtracts your allowable expenses from your net income and asks you to pay the […]
IRS Procedures for Business Taxes
Business taxes are often not Income Taxes because a small business doesn’t usually pay Income Taxes. That is because many are either S Corporations or LLC’s. Thus, the entity could never be responsible for income taxes since the taxes are passed through to the owners. However, the tax typically imposed on S Corporations & LLC’s […]
Identity Theft Letters & Notices from the IRS
Identity Theft has become a major problem in the US but there are different problems associated with different kinds of ID theft. Identity theft of your credit card or bank information has a different effect on you than someone filing false documents on your behalf with the IRS. The effect on you depends on which […]
