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IRS Sues Adult Children to Collect Their Parent's Tax Debt and FBAR Penalties

Tax debt is notoriously hard to get rid of. The IRS is a zealous creditor with some tax liabilities even surviving bankruptcy. If you owe significant unpaid taxes, the IRS has a variety of ways to collect on that debt. But could those collections aff… Read More
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Categories: IRS Debt Collection
Scales of Justice weighing cash

Married Spouses’ Willful FBAR Penalties Are Double, Treasury Department Says

Most married couples manage their money together. They may hold accounts jointly, or each keep their names on their own assets. But according to a recent complaint filed by the United States Secretary of Treasury, even keeping accounts in one spouse… Read More
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Woman signing tax forms

IRS Says Widow Committed Willful FBAR Violations Just by Signing Tax Returns

In many relationships, one spouse may handle all the financial affairs of the household. But what happens when that spouse dies? Can a widow (or widower) be assessed a willful FBAR penalty just for signing tax returns prepared by her spouse and a CPA… Read More
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How Courts Calculate Will…

How Courts Calculate Willful FBAR Penalties

If things have gone wrong and you find yourself and your overseas bank accounts the subject of an IRS audit, you may feel like you are preparing for the worst. But what is the worst? How do the IRS and tax courts calculate willful FBAR penalties when… Read More
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Is a Retirement Account E…

Is a Retirement Account Early Withdrawal Tax Penalty Unconstitutional Discrimination?

What’s the difference between a tax-advantaged retirement account and a regular savings account? About 10% if you take a withdrawal too early. But could that early withdrawal tax penalty be unconstitutional age or disability discrimination? The U.S… Read More
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Court Says Taxpayer Could…

Court Says Taxpayer Could Not Redeem Real Estate Sold Under Tax Lien

Taxpayers who sink their assets into real estate rather than pay their taxes can find themselves facing sheriff sales when the IRS comes to collect what is owed. One taxpayer tried to use a Utah law to redeem real estate sold under a tax lien, but th… Read More
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U.S. Tax Court Suspends I…

U.S. Tax Court Suspends IRS Tax Levy During Tax Appeal

Can the IRS continue to seize your income even if you are appealing a tax determination? Can you stop an IRS tax levy if you believe there was an error, or do you simply have to pay now and sue later? The U.S. Tax Court provided a helpful summary of… Read More
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Categories: IRS Debt Collection
Bankruptcy Court Lifts St…

Bankruptcy Court Lifts Stay for IRS to Collect Tax Lien on Retiree’s Pension

Bankruptcy attorneys often advise clients that filing their bankruptcy petition will put an end to collections efforts by creditors. However, tax attorneys know that the IRS does not give up so easily. A recent bankruptcy court case shows that an aut… Read More
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IRS Processing Delays Cre…

IRS Processing Delays Create Trouble for Foreign Trust Beneficiaries

In this digital age, having documents “cross in the mail” is almost obsolete. However, IRS processing delays in reviewing foreign trust beneficiaries’ reasonable cause applications for forgiveness of reporting penalties can mean taxpayers recei… Read More
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Categories: Tax / IRS Penalties
IRS Excuses Foreign Trust…

IRS Excuses Foreign Trust Reporting for Some Beneficiaries

Retirement brings significant changes to the way U.S. taxpayers receive income, and report that income to the IRS. Up until now, if some part of that retirement income came from a foreign trust, beneficiaries ran the risk of IRS penalties unless they… Read More
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Categories: Tax / IRS Penalties

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