When does the recipient of a gift have to pay the gift tax?
- November 11th, 2020
- David Greene
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The IRS may look to the recipient of the gift to pay the gift tax if the donor did not pay the tax. Usually, the only situation where the IRS pursues the recipient of the gift is after the donor…
How long is the Statute of Limitations for collection of taxes?
- October 20th, 2020
- David Greene
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I have been asked this question countless times. There is a ten year statute of limitations on collection of taxes. This means the IRS has ten years to collect taxes from the time the tax return is filed and assessed,…
Are foreign bank accounts illegal for American citizens?
- October 8th, 2020
- David Greene
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It’s amazing the rumors that abound about the IRS. You will not get in trouble for merely having a foreign bank account, so long as you report it properly on your tax return. Many people and businesses have such accounts…
Will Social Security payroll taxes deferred in 2020 have to be repaid?
- October 6th, 2020
- David Greene
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This new memo from our president concerning deferring certain payroll taxes, which was issued in August 2020, is still being implemented, so the answer is not clear. However, at this time, the taxes deferred in 2020 will have to be…
When a military member files a late return, is she penalized?
- September 30th, 2020
- David Greene
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The answer to this question depends on where the she is actively serving. If she is serving in the US or in a non-combat zone, there is no special relief for late filing. She will be charged the usual late…
Are offshore bank accounts illegal?
- September 24th, 2020
- David Greene
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As I have mentioned previously in this column, the IRS has launched an aggressive offensive campaign against people who have offshore bank accounts. It is certainly not illegal to have an offshore account or credit card and there are many…
What is my process for resolving delinquent taxes for clients?
- September 23rd, 2020
- David Greene
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Since each case is unique to its own set of facts, I can only discuss general guidelines of our process. When one retains me, he will sign a Form 2848 Limited Power of Attorney that allows me to represent him…
Is there a penalty for a tax return filed late that shows a refund?
- September 15th, 2020
- David Greene
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Fortunately, the answer is “No.” If you are due a refund on your taxes and file the return after the filing deadline (July 15 this year), the IRS will not charge you a late filing penalty. This is because you…
How is a levy different from a lien?
- September 9th, 2020
- David Greene
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I answered this question about the lien last week. This week I want to discuss how a levy differs from a lien. While a lien is simply recorded at the courthouse and is therefore a “passive” collection action (nothing happens…
Can the IRS seize real property based on filing a lien?
- September 1st, 2020
- David Greene
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No, the IRS will not seize a taxpayer’s home as a result of filing a Lien. They would have to start a legal proceeding to reduce the lien to a judgment. However, this lien does affect your property. You can…