I handled a recent offer in compromise for a taxpayer based on doubt as to collectability. The offer was submitted pre-virus pandemic and was pending before the IRS for many months. During that time, the pandemic had changed the taxpayers’ finances in multiple ways. One of the taxpayers changed employment, which brought a change to…
Read MoreCollection Due Process Hearing. A taxpayer is entitled to a Collection Due Process Hearing to determine if the IRS may correctly proceed with collection of tax or a notice of federal tax lien. The Collection Due Process Hearing is held before a settlement officer of the IRS Independent Office of Appeals. In a Collection Due…
Read MoreIn Part I of this article, we discussed factors the IRS considers in determining whether innocent spouse relief under IRC § 6015(f) will protect one spouse from the other spouse’s failure to pay federal income tax. (https://crowleyfleck.com/what-to-do-when-your-spouse-doesnt-pay-the-tax-bill-part-1-of-2-2/) In Part 2, we will review the obligations of a taxpayer to prove that the spouse qualifies for…
Read MoreMany spouses file a Married Filing Jointly federal income tax return in order take advantage of tax rates, deductions and other tax items. But Married Filing Jointly also imposes joint and several liability for the tax on the husband and wife, meaning that either spouse is fully liable for the joint tax debt, and the…
Read MoreIn the past year, the Director of the Montana Department of Revenue (“DOR”), Brendan Beatty, spoke to the Taxation Committee of the Montana State Bar Association, of which I am the Chairman. Director Beatty was appointed Montana DOR Director by Governor Greg Gianforte in 2021. Director Beatty previously served for over 20 years as legal…
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