Frivolous tax arguments are false and unreasonable claims used to support fraudulent tax returns. The IRS maintains a non-exclusive list of frivolous tax arguments and can impose severe penalties on taxpayers who file frivolous returns. Common Frivolous Tax Arguments...
Month: July 2019
IRS Levies When You Have a Financial Hardship
An IRS levy of your bank account or other assets can put you in a dire financial situation. In some cases, you may be able to avoid the levy or have it released if it will cause an immediate financial hardship. You can also tell the IRS about your financial hardship...
Tax Debt Relief When You Have a Financial Hardship
The IRS offers several types of tax debt relief for taxpayers who are experiencing a financial hardship. You’ll have to work with the IRS to find the type of tax relief that works best for your situation. You may be able to use any of the following tax resolution...
When to Appeal an IRS Audit
You’ll have to consider the following factors when deciding whether to appeal the results of an IRS audit: How much money is at stake. Your arguments for disputing the tax assessment. Whether you are able to come to a settlement. The advice of your representative or...
What Happens If You Ignore an IRS Audit Notice?
Ignoring an IRS audit notice can result in an assessment of additional tax, penalties, and interest. If you continue to ignore subsequent IRS notices, you may lose your right to dispute the case in Tax Court, and the IRS can begin trying to collect the tax. Regardless...
What to Do If Your Spouse Has Tax Debt
You generally aren’t responsible for tax debt incurred by your spouse before you were married. However, you could still run the risk that the IRS will seize your tax refund if you file jointly. To avoid this situation, you have a few options. File Separately If you...
Should You Convert to a Direct Debit Installment Agreement?
The IRS prefers Direct Debit Installment Agreements (DDIA) to payment by check or other methods. Payments occur automatically, so the taxpayer doesn’t need to remember to send a payment each month, which reduces the risk of default. To encourage taxpayers to use...
How Long Do You Have to Disclose Offshore Accounts?
You can generally disclose your offshore accounts as long as the IRS has not begun an examination or criminal investigation into your non-compliance. However, you lose this ability if the IRS starts an examination, even if the examination isn’t related to your foreign...
Consequences of Failing to Make an Offshore Disclosure
A failure to report your undisclosed foreign accounts can result in both criminal and civil penalties. In a worst-case scenario, it’s possible to face hundreds of thousands of dollars in fines and possibly jail time. Criminal FBAR Penalties Criminal Foreign Bank...
How Are FBAR Penalties Calculated?
Foreign Bank Account Report (FBAR) violations can result in serious penalties. However, there is a large gray area when its time for the IRS examiner to determine the exact amount of a penalty assessment. Some factors that could impact your penalty assessment include:...