A recent case details what can happen when a bank does not immediately apply an Internal Revenue Service levy to freeze a bank account. The bank was on the hook for the amount that its customer withdrew.When a taxpayer is unable to pay a tax bill, the IRS has various...
Month: August 2014
Payroll taxes and the Trust Fund Recovery Penalty
The Internal Revenue Service does not have the resources to audit every single tax return and thus prioritizes its collection efforts. The agency keeps a close eye on the payment of employment taxes withheld from employee paychecks.When a company does not immediately...
Relief from tax debt possible, but beware of lofty promises
The Federal Trade Commission recently went after a company that made claims they could settle tax debt for pennies on the dollar. The problem was that once consumers sent an upfront fee they often did not receive any tax-debt relief.Under the FTC settlement, the...
IRS correspondence tax audit: Open the letter
The Internal Revenue Service has increased the number of correspondence audits in lieu of in person tax audits. When an envelope with the IRS logo arrives in the mail, do not ignore it.Often a letter or notice from the IRS will request additional information. The...