Tax Blog

When an Illinois Corporation went out of business on March 12, 2009 without paying all of its payroll taxes, a successor corporation began operating in the same physical location. The successor corporation purchased all of its predecessor's assets, hired its employees, used its website and phone ...

The U.S. Court of Appeals for the Eighth Circuit ruled in June 2015 that the IRS properly applied the 6-year statute of limitations (instead of the shorter 3-year) because the taxpayer had omitted more than 25% of his gross income from his return. The taxpayer claimed that since the IRS had found...

State & IRS liens, levies and seizures are some of the strongest collection tools at the disposal of the government. For example, if you owe back taxes to the IRS, a tax lien automatically attaches to your personal property. This statutory tax lien is also called a “secret lien” since only the ta...

State & IRS liens, levies and seizures are some of the strongest collection tools at the disposal of the government. For example, if you owe back taxes to the IRS, a tax lien automatically attaches to your personal property. This statutory tax lien is also called a “secret lien” since only the ta...

Learning that you have been selected by the IRS or by a state taxing authority for a tax audit can be understandably stressful. During a tax audit, a well-trained government employee will probe your financial affairs by examining your tax returns and other financial documents for any evidence of ...

In S. v. Rominski, et al a District Court in Illinois has held that the IRS may file a tax lien against an individual's real estate even if the property's legal title holder is another individual. A couple lived in a property which was titled in the husband's name only. In order to protect his pr...

A U.S. citizen worked in Iraq as a military helicopter pilot in 2009, 2010, 2011 and 2012. His primary home was in Alabama. He resided in Iraq for 248 days in 2010, 240 days in 2011 and 249 in 2012. His employer paid for his round-trip tickets to Kuwait at the conclusion of each 60-day work perio...

The last day for filing tax court petition was April 22, 2015. The tax court petition filed by the taxpayers was received by the court on April 29, 2015. Taxpayers pre-paid for the postage by using Stamps.com on April 21. The envelope didn't bear the postmark from the post office and the and show...

At one time or another, many individuals consider borrowing funds from their retirement accounts such as their 401(k) savings. They wonder what would be the tax consequences of such loans or withdrawals. Simply put, if the retirement plan allows such loans in the first place, and the individual a...

In order to encourage taxpayers to file their income tax returns and pay their taxes on time, the tax code provides for penalties. A tax penalty is usually assessed for failure to file tax returns on time or altogether. Similarly, a tax penalty is imposed for failure to timely pay taxes. The IRS ...

Entering into an Installment Plan Agreement with the IRS or with a state taxing authority is one way to pay off your back taxes. Before entering into an installment agreement, however, the pros and cons of such an agreement should be carefully weighed. For example, while the installment agreement...