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Yearly Archives: 2020

IRS Is Asking More Workers To Return To Work Voluntarily Amid The Pandemic

May 20, 2020

 On April 29, 2020 we posted They're Back! - That is Right the IRS Has Begun to Recall Employees,

where we discussed that The Internal Revenue Service is recalling about 46,000 of its employees furloughed by the government shutdown, nearly 60 percent of its workforce, to handle tax returns and pay out refunds. The employees won't be paid during the shutdown.
 
That now the IRS is asking more workers to return to work voluntarily amid the pandemic. According to Law360, The IRS is asking more employees to volunteer to return to work on site with incentive pay as the agency begins to reopen offices that were closed because of the COVID-19 pandemic, the union representing agency employees said Thursday.
 

The National Treasury Employees' Union Supports The Internal Revenue Service's Call For Additional Employees To Volunteer To Return To Work During The Pandemic, NTEU President Tony Reardon Said In A Statement.

 

Nevertheless, he added, they should feel safe enough to do so, especially after an agency employee contracted the illness in Kansas City IRS employees who volunteer to return to work should have sufficient personal protective equipment such as masks and hand sanitizer readily available, and additional steps should be taken to clean office spaces, Reardon said.
 
"We will continue to work with the IRS to find the right balance between delivering a tax-filing season and keeping federal employees safe," Reardon said.
 

He Added That The Union Would Continue To Urge The Agency To Extend The Filing Deadline Even Further,
From July 15 To Oct. 15.　

 
The IRS didn't immediately respond to a request for comment. Reardon said that ensuring employees' safety is even more critical after an IRS employee in Kansas City last week contracted COVID-19, the respiratory disease caused by the novel coronavirus.
 
According to a Facebook post by the local NTEU chapter in Kansas City, the IRS campus there will be closed until May 12 to ensure the space is properly cleaned, and then employees will be able to return on a limited basis.
 
Last week, the IRS told the NTEU it had secured enough face masks for agency employees who volunteered to return to work. The agency also reported that there are few enough returning workers that they can comply with physical distancing standards, Reardon said.
 
Reardon previously said that state and local orders requiring people to stay home should be lifted and that other conditions should be met before federal employees returned to their offices.
 
The union's conditions for bringing back workers also included proof of thorough cleaning of sites, adequate supplies of sanitizers and disinfectants, a policy of voluntary maximum telework, work spaces that provide for physical distancing, procedures for taking employees' temperatures before they enter buildings and permitting and providing the use of cloth face coverings.
 
In March, the IRS extended the April tax filing deadline to July 15 to account for hardships caused by the coronavirus pandemic. The agency also took steps in March to temporarily suspend some tax enforcement efforts and generally not begin new audits or collection efforts until July 15.
 
Additionally, the IRS shuttered all its service centers and Taxpayer Assistance Centers and is holding mail. The IRS has also directed much of its workforce to telework and suspended some enforcement actions.
 
HAVE AN IRS TAX PROBLEM?


Contact the Tax Lawyers at
Marini & Associates, P.A.   
for a FREE Tax Consultation contact us at:
www.TaxAid.com or www.OVDPLaw.com or
Toll Free at 888-8TaxAid (888) 882-924


Read more at: Tax Times blog

References to the NAFTA in Income Tax Treaties Will Be interpreted as a References to the USMCA

May 19, 2020


Announcement 2020-06 provides the Treasury Department and IRS view on how to interpret references in U.S. income tax treaties to the North American Free Trade Agreement (NAFTA) once it is replaced by the Agreement between the United States Canada and Mexico (the USMCA). 

The announcement provides that once the USMCA goes into force, the IRS and Treasury will interpret any references to NAFTA in a U.S. income tax treaty as a reference to the USMCA. 

Have an International Tax Treaty Problem?

 Contact the Tax Lawyers at
Marini & Associates, P.A. 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243) 




Read more at: Tax Times blog

DC Finds That IRS Improperly Levied Property Belonging to Decedent’s Children

May 18, 2020

A federal district court has found, in Goodrich, (DC LA 3/17/2020) 125 AFTR 2d ¶2020-558 that the IRS improperly levied property belonging to a decedent’s children. The decedent held a life estate in certain property that was willed to the children by their mother and decedent’s interest in that property ended when he died. Therefore, the children were entitled to get that property back. 
A nontaxpayer can sue the IRS for wrongful levy. (Code Sec. 7426). To establish a wrongful levy claim against the IRS, a nontaxpayer must show that:
  1. the IRS levied against property held by the nontaxpayer to satisfy another taxpayer’s liability;
  2. the nontaxpayer had an interest in that property superior to that of the IRS; and 
  3. the levy was wrongful because, for example, the property did not belong to the taxpayer at the time of the levy. (Oxford Capital Corp., (CA5 2000) 85 AFTR 2d 2000-1840)
Under Louisiana law, a surviving spouse who receives a usufruct (life estate) in certain property created by a will generally may consume or sell consumable property such as money (La. Civ. Code Art. 536) and may possess and use non-consumables such as real estate, stocks and mineral rights. (La. Civ. Code Art. 537)
When the life estate’s beneficiary ("beneficiary") dies, the life estate in consumables terminates and the beneficiary is bound either to pay to the “naked owners” ("remaindermen") the value that the consumables had at the beginning of the life estate or to deliver to the remaindermen things of the same quantity and qualify. (La. Civ. Code Art. 629)
The debts that the beneficiary owes to the remaindermen, including restoration of the value of consumables that were subject to the life estate, are debts of the estate. (In Re Succession of Catching, (La. App. 2d Cir. 2010) 35 So.3d 449)
Henry Goodrich (Henry) died owing a significant amount of taxes. At the time of his death he held a life estate, created by his deceased wife’s will, that included personal property, real property, stocks, cash, and mineral interests. Henry’s three children were the remaindermen of the life estate.  
A few years after Henry died, the IRS issued levies against funds in his estate’s bank accounts, including cash that Henry received when he sold shares of stock. The IRS applied the seized funds to Henry’s tax debts. 
In their wrongful levy action, Henry’s children argued that at the time of Henry’s death they became 100% owners of the assets subject to Henry’s life estate and, therefore, none of the levied assets were Henry’s when the IRS issued the levies. The children demanded that the IRS return the cash it seized from the estate’s accounts.
The district court found that the IRS improperly levied cash from the estate’s account that was generated by the sale of personal property and real property because under Louisiana law Henry’s interest in that property ended when he died even through the proceeds from the sale of the property were deposited in the estate’s account.
However, the court decided that Henry’s children had a claim against the estate for the cash Henry received for certain stock that he sold. Therefore, the IRS’s levy on this amount was not wrongful.
Citing In Re Succession of Catching, the court held that because Henry had the option to deliver to his children (as the remaindermen of the life estate) either stock in the same quantity or quality as the stock he sold or a sum of money representing the value of that stock to restore the value of the consumables (stock) he sold, Henry’s obligation was a debt he owed his children. Thus, when Henry died and his life estate terminated, the debt became an obligation of his estate that was subject to administration and payment only if the estate had adequate funds to satisfy the obligation.  
 Do You Have and IRS Collection Problem?
 
Contact the Tax Lawyers at 
Marini & Associates, P.A.   
for a FREE Tax Consultation contact us at:
www.TaxAid.com or www.OVDPLaw.com 
Toll Free at 888-8TaxAid (888) 882-9243
 

Read more at: Tax Times blog

Covid-19's Economic Downturn Provides Opportunities for Taxpayers

May 14, 2020

The IRS Practitioners Hotline Has Reopened!

and We Are Now Again Able To Call The IRS to
Get Resolutions For Taxpayers Who Have Outstanding
Tax Liabilities and Cannot Pay Them.
 

We Are Seeking Taxpayers That Owe The IRS Money and Who Have Been Adversely Affected Financially

By The Coronavirus Pandemic. 

  • Even if you are already on an installment payment plan, you may qualify for a revised lower installment payment plan, based upon your change in circumstances.
  • Alternatively, where you've lost your job, we may be able to put you in Currently Not Collectible (CNC) status with the IRS.   

Currently Not Collectible (CNC) Status Defers Payment

CNC status allows people in financial hardship situations to defer paying their tax bill, until their situation improves. For example, unemployed people often seek CNC status from the IRS.

Documenting Your Financial Situation to Qualifying for CNC Status.  

If you need CNC status, you must prove to the IRS that you can’t afford to pay. That means you’ll need to document your financial situation for the IRS.

 
  • First, the IRS will look for any nest egg that you may have, like a savings account, to pay your taxes if you don’t need it to pay for necessary living expenses.
  • If you don’t have any assets to pay the debt, the IRS will want you to document your average monthly income and necessary living expenses. 
    • The IRS is looking to see if you can pay with an installment agreement.
  • The IRS may also ask you to file a financial statement (called a Form 433) and may even require you to prove your monthly income (with paystubs and bank deposits) and monthly living expenses (with receipts).
    • The IRS can set limits on your expenses. For example, if your car payment is $1,200 a month, the IRS will limit it to $497.

How To Request CNC Status

You can call the IRS and waited hours to see if they exercise discretion in your favor and put your account in CNC status or you can hire an Experienced Tax Professional to have the IRS put you in CNC status.
 

Don’t Ignore Your Tax Liability

Many times, people who ignore their tax bill get a false sense of security that the IRS will ignore the issue, too. They will not! The only way to make sure that the IRS doesn’t levy your account or your wages, is to contact the IRS and request that your account be put into CNC status.

Details You Need to Know About CNC Status

  • The IRS will take any refunds in future years until you pay off the tax bill.
  • The IRS will usually file a federal tax lien if you owe more than $10,000.
  • CNC status does nothing to reduce or eliminate your tax liability.
  • CNC status may not be forever. After you get CNC status, the IRS will review your financial situation every year to see if you can afford to pay your taxes again.
    • If your financial situation changes, the IRS may remove you from CNC status and ask for new terms.
    • The IRS will analyze the income on your tax return or on information statements like Form W-2, 1099, etc., if you haven’t filed.
    • If your income is more than the living expenses you provided when you originally got your CNC status, you’ll likely need to start making payments to the IRS unless you have added more necessary living expenses.
    • The IRS sends a notice to you if it wants you to provide more current financial information about your CNC status.
  • If your situation stays the same, the IRS will likely “write off” your taxes, penalties, and interest owed after 10 years. This rule is called the collection statute of limitations. At the end of 10 years, the IRS can no longer collect unless you have extended the collection statute by some action (filed an offer in compromise, left the country, and several other reasons).
    If You’re Experiencing A Financial Hardship As A Result Of Covid 19, Consider CNC Status.

 


You may even want to consider an IRS offer in compromise if your circumstances allow you to settle your tax debt with the IRS. 

You Need To Act Now, To Take Advantage

of This Unprecedented Time!

 

 

 Contact the Tax Lawyers of 

Marini & Associates, P.A.
 
for a FREE Tax Consultation
 www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888-8TaxAid (888 882-9243) 

 

 


　

    

Adversely Affected Financially by Covid 19?

 
 

Read more at: Tax Times blog

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