By George W. Connelly Hardly a day goes by when some politician or editorial person doesn't suggest that we don’t need the IRS or should simply do away with it. Most of them come in connection with suggestions for changing the tax system to something like a national retail sales tax. What these people fail to … Continue reading What Happens If We Abolish the IRS?
By George W. Connelly The Inspector General for Tax Administration, TIGTA, has been in the news a lot lately. In addition to tracking down misbehaving IRS employees and misbehaving representatives, an important role of this organization seems to be examining every aspect of the operation of the Internal Revenue Service and publishing a critical report about … Continue reading Who Audits TIGTA?
By George W. Connelly The Tax Court recently issued a Summary Opinion, Malonzo v. Commissioner of Internal Revenue, T.C. Summ. Op. 2013-47, involving an individual who was underwater on her mortgage, and who abandoned the property, subsequent to which the mortgage loan was foreclosed. She took no formal steps to transfer title or provide the lender … Continue reading Before You Abandon That Underwater House, Read This!
By George W. Connelly The IRS employs many lawyers and employees of the IRS Office of Chief Counsel are its principal legal staff who number 1560, of whom about 550 work in the IRS National Office in Washington, while the balance work in offices around the country. They provide legal advice to the Commissioner of Internal … Continue reading How Does IRS Police Its Own Lawyers?
By George W. Connelly Previous Blawg articles have cautioned my readers about the problems they can face if they do not take care of their Federal employment taxes, ranging from collection action against their business, to the trust fund recovery penalty being asserted against individuals determined to be “responsible officers.” Since Federal agencies are also required … Continue reading How Does the IRS Treat Federal Agencies Who Owe Employment Taxes?
By George W. Connelly Well for starters, it won’t be very happy! Beyond that, the IRS has several avenues it can pursue. In extreme situations, such as where a taxpayer owes a considerable sum of money and has not filed for several years, the IRS may consider pursuing criminal liability under I.R.C. § 7203, which makes … Continue reading What Will The IRS Do If You Don’t Prepare An Income Tax Return?
By George W. Connelly Obviously, there will be “nothing” to do unless the business owes taxes or has not filed all its tax returns. These comments are prompted by the fact is that the IRS has just issued a Manual Administration Supplement No. 855 to instruct its employees about how to proceed in the case of … Continue reading What Can The IRS Do If You Go Out Of Business?