Why Tax Issues Matter in Divorce Tax issues are frequently overlooked in divorce litigation. Parties often focus on custody disputes and dividing assets, but the tax consequences of those decisions can dramatically alter the true economic outcome of the divorce. This article discusses three very important tax issues that arise in a divorce case and...
How IRS Notices of Deficiency Lead to Tax Court Disputes When the IRS determines that a taxpayer has underreported income, it may issue a Notice of Deficiency proposing additional tax, penalties, and interest. This notice gives the taxpayer the right to challenge the assessment by filing a petition in the United States Tax Court. Tax disputes invol...
What Is an IRS National Research Program Audit and How It Works When the IRS National Research Program, or NRP, is a type of audit designed to collect data about taxpayer compliance. Unlike standard audits that are triggered by specific issues, NRP audits are often randomly selected and used to improve IRS enforcement models. Despite their research...
How CARES Act NOL Carryback Rules Created Refund Opportunities The CARES Act introduced temporary changes to net operating loss rules, allowing taxpayers to carry back losses from 2018 through 2020 for up to five years. This provision allowed businesses and individuals to offset prior taxable income and claim refunds for taxes paid in earlier years...
How IRS Bank Levies Affect Businesses With Payroll Tax Debt When federal tax liabilities remain unpaid, the IRS may take enforcement action to collect the outstanding balance. One of the most severe collection tools is a bank levy, which allows the IRS to seize funds directly from a business bank account. For businesses, a bank levy can immediately...
How IRS Bank Levies Impact Nonprofits and Religious Organizations When federal tax liabilities remain unpaid, the IRS may take enforcement action to collect the balance. One of the most disruptive tools is a bank levy, which allows the IRS to seize funds directly from a taxpayer’s bank account. For nonprofit and religious organizations, a bank levy...
How IRS Wage Levies Work and Impact Taxpayers When federal income tax liabilities remain unpaid, the IRS may take enforcement action to collect the outstanding balance. One of the most aggressive collection tools is a wage levy, which allows the IRS to garnish wages directly from a taxpayer’s employer. An IRS wage levy can result in a significant p...
