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Generally, in an IRS Tax Audit, the IRS can include tax returns filed within the last three years in a Tax Audit. If the IRS identifies a substantial error, they may add additional years. If they are auditing you for years that you have not filed tax returns, this is a very bad situation. The […]

Generally, in an IRS Tax Audit, the IRS can include tax returns filed within the last three years in a Tax Audit. If the IRS identifies a substantial error, they may add additional years. If they are auditing you for years that you have not filed tax returns, this is a very bad situation. The […]

Yes, but it is really hard, expensive and the IRS really would rather not. The seizure of a taxpayer’s home or business is authorized by the Internal Revenue Code. The IRS District Director is empowered to take a taxpayer’s home or business with a stroke of his pen. The Internal Revenue Service Restructuring and Reform Act of 1998 (1998 […]

Often, the California Franchise Tax Board (FTB) can be harder to deal with than the IRS. The FTB’s attitude is that they gave the taxpayer sufficient notice to enter alternative arrangements. While the FTB’s levies are limited to 25%, once they are imposed they are harder to get released. The taxpayer must submit financials showing […]

10 YEARS. I would like to able say that, but it is a little more complicated than that. The term the IRS uses is CSED (Collection Statute Expiration Date). 10 years from the date of assessment, not the date you filed. This means the 10 year period starts the date the IRS has your tax […]

This is a somewhat impossible question to answer. It depends on your situation. If you owe less than $5,000, you will be below the radar for purposes of having the IRS file a lien against your property, wages or bank accounts. As this is the first step in the IRS’ collection procedure, a levy is […]

From the IRS website: Selection for an audit does not always suggest there’s a problem. The IRS uses several different methods: Random selection and computer screening – sometimes returns are selected based solely on a statistical formula. We compare your tax return against “norms” for similar returns. We develop these “norms” from audits of a statistically […]

If you pay your employees in cash and do not document this expense and report it to the IRS and FTB, you will not be able to report it as a deductible business expense on your business tax return or the Schedule C on your 1040 tax return. While many see this as a way […]

The cash issue has always been an interesting one. The IRS hates it. If you are paid in cash and put it in the bank, the bank reports the interest earned at the end of the year to the IRS. This puts the IRS on notice that you exist, but that they are not receiving […]

Anyone can sue anyone, but the IRS does not need to in order to collect the amounts due them for income tax and the other tax collections it administers. The IRS has the following collection powers: Liens Levies Wage garnishments Property seizures The IRS may intercept your federal or state refund None of the above […]