Western States Tax Advisor

When Can a Taxpayer Appeal to US Tax Court?

I am at times approached by taxpayers who “want to go to court” to challenge their federal income tax[liability. Such taxpayers may be chagrined to learn that while the ability to have a court hear their tax case definitely can lay in their future, there are typically multiple steps that taxpayers must follow before ending […]

A Taxpayer Can’t Skip IRA Appeals and Still Recover Legal Fees Against the IRS

Taxpayer can seek legal fees at Tax Court. A taxpayer has the right to request from the Tax Court an award of attorney fees and costs spent in successful tax appeals against the IRS. See 26 U.S.C. § 7430(a). However, there are multiple prerequisites that the taxpayer must meet before being entitled to an award […]

Where is a Notice of Federal Tax Lien Filed in North Dakota?

The IRS is permitted to file a Notice of Federal Tax Lien (“NFTL”) to perfect a tax lien that arises by operation of law under the Internal Revenue Code for unpaid federal tax. It may become necessary to obtain copies of the filed NFTL if the taxpayer, who should have been mailed a copy, does […]

Montana Pharmacy Paid Too Much Rent Says US Tax Court

Plentywood, MT pharmacy rent expenses. The US Tax Court recently heard a case where a Montana pharmacy located in Plentywood, Montana, population 1,700, paid rent for a building owned by the same people that owned the pharmacy. While rent is typically a deductible expense, that is not necessarily the case when the parties are closely […]

Fake Tax Notices

Taxpayers who owe delinquent taxes to the IRS or have tax liens on their property receive many different tax notices from the IRS in an attempt to collect. However, taxpayers may also receive other official looking notices that appear to be tax notices, but that are not from the IRS. A copy of one such […]

Taxpayers Have Limits in Collection Due Process Hearings

What is a Collection Due Process Hearing? A Collection Due Process Hearing (“CDP”) is an informal hearing with an  Appeals Officer from the IRS Independent Office of Appeals, provided by the Internal Revenue Code, to permit taxpayers to challenge the process the IRS has employed in imposing and collecting taxes. For example, a taxpayer is […]

When One Spouse Must Pay Delinquent Taxes as Part of a Divorce. Part 2 of 2

In a marriage dissolution (divorce) and property settlement, one of the spouses may be assigned to pay the outstanding tax liability of the divorcing couple or even the separate tax liability of the other spouse. If the spouse not obligated to the IRS for the tax becomes obligated under the divorce decree to pay the […]

When One Spouse Must Pay Delinquent Taxes as Part of a Divorce. Part 1 of 2

In a marriage dissolution (divorce) and property division, it is common that the assets and liabilities of the marriage are split between the divorcing parties. When the divorcing couple owes federal income tax, frequently the divorcing couple allocates the payment of the tax liability to one of the parties, often the party that earned the […]