The owner of a small business must determine how to deal with assets he or she owns when determining the reasonable collection potential under an offer in compromise. The reasonable collection potential consists of the taxpayer’s future income and the next equity in assets that may be used to pay toward outstanding tax liability under…
Read MoreTax law is full of requirements the IRS must follow and that a taxpayer can rely upon to contest tax audits and collections. However, when a taxpayer stretches credulity and too stubbornly insists on rights that only peripherally exist or protests too much without enough substance, the taxpayer can set himself up to lose. A…
Read MoreWhen a taxpayer needs to defend against an assessment or collection of tax, often the taxpayer has legitimate defenses to the additional tax or to collection. However, many taxpayers are unfamiliar with the tax law and the strict deadlines in which they have to contest tax assessments or collections. As a consequence, the taxpayer may…
Read MoreI am at times approached by taxpayers who “want to go to court” to challenge their federal income tax. Such taxpayers may be chagrined to learn that while the ability to have a court hear their tax case definitely can lie in their future, there are typically multiple steps that that taxpayer must follow before…
Read MoreFor IRS tax collections, the IRS is required to send various notices to the taxpayer before the IRS can typically begin collection levies, following the filing of a Notice of Federal Tax Lien, and in many other situations. However, the question may arise on how the IRS should addresses official tax notices to businesses run…
Read MoreIn Part 1 of this article, I discussed the effect of Mont. Code Ann. § 15-7-139(6), which permits the Montana Department of Revenue to estimate property value for property tax purposes if the taxpayer will not permit a property inspection. I also addressed § 15-7-139(7) which bars the county and state tax appeal boards from…
Read MoreThe IRS has recently enacted a new process for the online filing of IRS Form 2848, Powers of Attorney. Previously, the Power of Attorney needed to be mailed or faxed into the IRS’s CAF Unit in order to be entered into the IRS’s system. However, with the allowance of electronic filing , the IRS has…
Read MoreThe Montana Department of Revenue is responsible for assessing the value of property in Montana for property tax purposes. The Department of Revenue may use various methods to determine property value, including mass appraisal for residential and commercial properties which often relies on data of many properties to determine value. But in the course of…
Read MoreIn Part 1, we discussed the notices the IRS gives when it believes the taxpayer has failed to report as taxable income the gain on the sale of a personal residence. Part 2 of this article focuses on the law of taxation of personal residences that the taxpayer can use to rebut the IRS’s attempted…
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