The IRS assesses millions of penalties against taxpayers each year in an effort to encourage voluntary compliance with the tax law. Penalties may be based on the failure to pay tax when due, failure to timely file a tax return, substantial inaccuracies in tax filings, or some other noncompliance with the tax law. Occasionally,
Most people know the government can go after taxpayers who owe back taxes. However, few individuals realize that both New York State and the IRS now have the ability to restrict delinquent taxpayers’ ability to travel, whether by suspending their driver’s licenses or by revoking their passports. New York Driver’s License Suspension New York
Since 1998, taxpayers have had an important right available to them to help them protest an IRS collection action and settle a tax debt. They have the right to request a Collection Due Process (CDP) hearing. CDP hearings can provide tremendous benefits, providing a fair and equitable process for both the IRS and taxpayers.
The IRS recently announced plans to begin private collection of certain overdue federal tax debts as early as the spring of 2017. It has already awarded contracts to four companies to participate in the collection program. Under a law passed in December 2015, the IRS is required to use private collection agencies for the
Taxpayers who owe back taxes may be getting some extra help. The IRS announced recently that it is testing expanded criteria for streamlined processing of taxpayer requests for installment agreements. When a taxpayer owes money to the IRS, there are several options for him/her to address the outstanding balance. In many instances, it is
Thanks to a law passed at the end of 2015, the IRS can revoke passports of seriously delinquent taxpayers. The law is another attempt to collect on the large amount of taxes owed to the government. According to the Washington Times, in 2014, the IRS reported 12.4 million delinquent accounts owed nearly $131 billion in
Do you owe money to the IRS? Taxpayers who can’t fully pay off their liabilities on their current or past tax return(s) may qualify for an “Offer in Compromise (OIC).” An OIC is an agreement between the taxpayer and the IRS to settle the taxpayer’s liabilities for less than the full amount owed. If
Federal tax liens are frequently used by the IRS to collect taxes owed. A lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. In our last post, we discussed the dangers of a lien. They have a significant impact on your assets and credit
Many taxpayers do not realize all the different tools the IRS can use in its attempts to collect taxes owed. One way is through a federal tax lien. A lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. Tax liens have a significant impact
It is important for taxpayers to understand what their tax liabilities will be for the year and to undertake efforts to lower their tax bill for the year. While certain deductions may be done after the close of the year (primarily contributions to retirement accounts), most tax planning strategies will need to be executed prior
The deadline to file the 2014 FBAR with the U.S. Treasury was June 30, 2015. What is the FBAR? If a U.S. taxpayer’s total maximum balances in foreign financial accounts exceed $10,000 at any point during a calendar year, she must file a FinCEN Form 114 (“FBAR”) by June 30 of the following year. The FBAR is
Recently, the NYS Department of Taxation and Finance introduced a new Commissioner, Jerry Boone. As the leadership changes, the time could be right for a fresh look at Department policies or procedures. One welcome development would be a modification of the driver’s license suspension program. In 2013, the legislature gave the Department the ability to authorize the
By: The Attorneys of Tenenbaum Law, P.C. As published in New York State Society of CPAs, Nassau Chapter, Volume 60 Issue 1, available here.
Typically, a New York State personal income tax refund must be claimed within three years of the date the return was filed, or within two years of when the tax was paid, whichever period expires the latest. Last month, New York State Governor Andrew Cuomo signed into law bill number A05959-2013, which amends section 687 of
On Wednesday, the IRS announced significant changes to its offshore disclosure programs. The IRS claims the changes will ease burden on certain taxpayers who are seeking to come into compliance. We’re talking about taxpayers who have failed to properly report to the U.S. government certain foreign financial accounts and pay U.S. tax on income associated with the noncompliance. In
