The tax reform bill that Congress voted to approve Dec. 20 contains numerous changes that will affect businesses large and small. H.R. 1, known as the Tax Cuts and Jobs Act, would make sweeping modifications to the Internal Revenue Code, including a much lower corporate tax rate, changes to credits and deductions, and a move… Read More


WASHINGTON— The Internal Revenue Service reminds taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) to submit their renewal applications as soon as possible. Failing to renew them by the end of the year will cause refund and processing delays in 2018. The IRS mailed letters over the summer to more than 1 million taxpayers whose… Read More


If a tax return is examined by the IRS and the taxpayer does not agree with the results of the examination, further appeal within the IRS is permitted ( Reg. §601.106). 5 Once the IRS has issued a preliminary 30-day letter, the taxpayer has the right to appeal to a local Appeals Office by filing… Read More


Generally, all income taxes must be assessed within three years after the original return is filed (the last day prescribed by law for filing if the return was filed before the last day) ( Code Sec. 6501; Reg. §301.6501(a)-1). 51 In the case of pass-through entities, the three-year rule begins to run at the time… Read More


There is a common misconception that income taxes are never dischargeable in bankruptcy. In fact, you can discharge some back federal, state, and local income taxes in Chapter 7, Chapter 13, and Chapter 11 bankruptcy. Moreover, the penalties and interest attached to these taxes are dischargeable as well. Determining which back taxes are dischargeable can… Read More


If a taxpayer owes a tax debt, the taxpayer can ask the IRS to settle the debt for less than the full amount. The IRS will agree to an offer in compromise only for specific reasons. Of these, the most relevant to an unemployed taxpayer with little or no income and minimal assets would be… Read More


The IRS has established a streamlined procedure for entering into installment agreements with certain taxpayers. Under the streamlined installment agreement procedure, eligible taxpayers can enter into an agreement either in person, by telephone, or by mail. If made by telephone or by mail, the agreement does not need the signature of the taxpayer. Further, the… Read More


Dear Client: This letter is intended to answer in more detail your question regarding the use of the IRS’s Offers in Compromise program to settle your tax liability with the IRS at an amount that is less than you owe. There are some ground rules that clearly must be part of any deal that will… Read More


A federal tax lien on real or personal property may be terminated or altered in the following ways: (1) The IRS must release a tax lien if the IRS determines that the tax liability has been paid or is legally unenforceable. (2) The IRS has discretion to discharge specific property from a tax lien in… Read More


In most cases, the expenses of renting your property, such as maintenance, insurance, taxes, and interest, can be deducted from your rental income, Personal use of rental property. If you sometimes use your rental property for personal purposes, you must divide your expenses between rental and personal use. Also, your rental expense deductions may be… Read More