When is assessing Montana property for property tax purposes like valuing a cup of coffee? The Montana Tax Appeal Board explained when it recently affirmed the property tax assessed value of Montana lake front property.[1] The taxpayer, in arguing for a reduced value to his land, the taxpayer calculated his property value by looking at…
Read MoreThe IRS is empowered by federal law to claim a lien against the property of a taxpayer who fails to timely pay its tax. The IRS tax lien arises upon assessment and notice to the taxpayer when the tax goes unpaid.[1] However, in order for the federal tax lien to have priority over many other…
Read MoreThe IRS may grant relief from tax liability to an “innocent spouse” when one spouse did not know or have reason to know of understatement of tax or nonpayment of tax by the other spouse by demonstrating the elements set forth in IRC § 6015. This tax relief is known as “innocent spouse relief.” In…
Read MoreIn Veal-Hill v. Comm'r of Internal Revenue, No. 19-2121, 2020 WL 6055418 (7th Cir. Oct. 14, 2020), the 7th Circuit Court of Appeals has updated the cost to the taxpayer who files a frivolous tax appeal. The Court has increased the amount to $5,000, an increase of the previous $4,000 amount set in 2006. The…
Read MoreCrowley Fleck’s Employment Law Practice Group has released its latest newsletter titled, ‘Employment Law Quarterly Update Newsletter – Issue 12 – December 2020′. Please contact one of our attorneys should you have any questions regarding this newsletter. Employment Law Quarterly Update Newsletter - Issue 12 - Dec 2020
Read MoreThe IRS may place a delinquent federal income tax account in Currently Non-Collectable status (“CNC”) when the taxpayer is unable to financially afford to pay tax liability while at the same time pay for basic living expenses.[1] Inability to pay is referred to as a “hardship.”[2] When an account is placed in CNC, the IRS…
Read MoreThe IRS imposes penalties on various taxpayer deficiencies. Penalties may include failure to file tax returns, failure to pay tax, substantial underreporting of income and many other penalties. Penalties can be abated or waived by the IRS upon a showing of reasonable cause by the taxpayer. However, the IRS also has a First Time Penalty…
Read MoreThe IRS is empowered to impose penalties upon taxpayers for various taxpayer deficiencies. For example, failure to timely file tax returns, failure to pay taxes, and for substantial underreporting of income. However, the IRS or the Tax Court can abate penalties upon a showing up reasonable cause and that the taxpayer acted in good faith.…
Read MoreFor a number of months since the COVID-19 pandemic struck, the IRS has offered installment agreements of up to $250,000 without the need for the taxpayer to submit a financial statement (IRS Form 433) to the IRS. However, the availability of this expanded installment agreement was not well publicized. The IRS has now publicized the…
Read MoreIn a previous article, I began examining Peretti v. State of Montana, Department of Revenue, 373 P.3d 447, 2016 MT 105. The case involves a Montana property taxpayer who had challenged her property tax but received unfavorable rulings from both the County Tax Appeal Board (“CTAB”) and the Montana Tax Appeal Board (“MTAB”), the administrative…
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