Archive for September, 2007
Foreclosed House’s Forgiven Debt = Taxable Income
QUESTION:
Recently, I lost my home to foreclosure because my adjustable rate mortgage took off and I was not able to keep up with the payments. I have heard that there are tax consequences for losing a home in foreclosure and I wondered if there was anything I could do about it.
ANSWER:
You are correct [...]
IRS Summons Summary
I have just completed a series on the IRS Summons and Third-party summons. If you have received a summons, that means the IRS is desperately trying to get information from you (or someone else) to assist them in determining your financial status and your ability to pay your taxes. If you don’t assist them [...]
Who is Liable for the Trust Fund Recovery Penalty?
The IRS will hold any person liable for the trust fund recovery penalty who was responsible for, meaning they had the duty to account for, collect, and pay over the trust fund taxes to the government.
A person includes officers and employees of corporations and partners and employees of partnerships, corporate directors and shareholders, [...]
What is the Trust Fund Recovery Penalty?
The Trust Fund Recovery Penalty is based on the Internal Revenue Code Section 6672 which states that:
Any person required to collect, truthfully account for, and pay over any tax imposed by this title who willfuly pails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any [...]
What Happens if I Ignore a Summons?
This post is a follow-up to two previous posts regarding summons issued by the IRS to obtain information regarding a taxpayer’s assets or financial information. I am attempting to answer the question that most people want to know – what kind of trouble can I get into for not responding to a summons, or [...]
Taxpayer’s Rights When a Third Party Summons is Issued
What are your rights as a taxpayer when a third party summons is issued?
Well, first of all, you must receive notice of the summons. Usually this is done by mail and comes to you within a few days after the summons is served on the third party. Next, if you feel that the [...]