Does a divorced person still owe the taxes generated in a previous marriage?
- David Greene
- Comments Off on Does a divorced person still owe the taxes generated in a previous marriage?
I have been asked this question many times before. The general answer is that he owes all of the taxes because he signed the return. For a joint return the signers are jointly and severally liable for the tax. This…
What exactly is the Trust Fund Penalty?
- David Greene
- Comments Off on What exactly is the Trust Fund Penalty?
First let me clarify that the Trust Fund Penalty is not really a penalty added to tax owed but is a portion of the payroll taxes owed by a corporation. The Trust Fund Penalty only applies to corporations, not to…
Is a Personal Representative ever liable for the delinquent taxes of the deceased?
- David Greene
- Comments Off on Is a Personal Representative ever liable for the delinquent taxes of the deceased?
If the deceased owes delinquent taxes at death, the IRS must file a claim for taxes owed by that decedent just as any other creditor must. They can collect out of the estate, but not from the Personal Representative’s personal…
How long does the Offer in Compromise process take?
- David Greene
- Comments Off on How long does the Offer in Compromise process take?
Let me make one thing clear at the outset, dealing with the IRS is not like dealing with your neighbor down the street or a local business. A submitted Offer will not be resolved in a matter of a few…
When can a business deduct gifts to Charities?
- David Greene
- Comments Off on When can a business deduct gifts to Charities?
Gifts to charities by a business are not alweays deductible, but in some cases they are. The IRS Chief Counsel recently issued an Advice Ruling in which he said that when a business conducts a promotion where it advertises that…
How to fight IRS denial of your Earned Income Credit and exemptions.
- David Greene
- Comments Off on How to fight IRS denial of your Earned Income Credit and exemptions.
Many people find their Earned Income creit and/or claim for exemptions for relatives denied by the IRS each year. This usually arises in the context of recently separated or divorced parents. Both will claim the exemption and credit and the…
What if the IRS tries to collect taxes you do not owe.
- David Greene
- Comments Off on What if the IRS tries to collect taxes you do not owe.
If you receive collection letters stating that you owe taxes for years that you do not think you owe, you need to proceed under the approach to compromising tax liability known as the “Doubt As To Liability” doctrine. As the…