United States Tax Court

Under certain circumstances a taxpayer may find themselves in United States Tax Court or have the ability to petition the United States Tax Court regarding a tax matter with the Internal Revenue Service.  The US Tax Court is a “travelling” court in the sense that it is not always in session in all of the areas/jurisdictions the court sits.  A judge will sit before the taxpayer and the IRS and hear the cases presented by both parties.  Taxpayers do have appeal rights to other courts after the tax court has made a decision or determination.

Typically, a taxpayer will find themselves in tax court after the IRS has issued a Notice of Deficiency.  When the IRS issues a Notice of Deficiency to a taxpayer, the taxpayer has 90 days to petition the tax court.  Generally, a Notice of Deficiency is issued to a taxpayer when a taxpayer is audited and the IRS is assessing additional tax.  A taxpayer may be able to make a “small claims” case or claim if the liability that is being disputed is below a certain threshold.

The video below has been prepared by a tax attorney at The McGuire Law Firm to provide additional information related to US Tax Court.  If you have questions relating to the US Tax Court, please feel free to contact The McGuire Law Firm to discuss these matters with a tax attorney.  The McGuire Law Firm has offices in Denver, Colorado and Golden, Colorado for your convenience and offers a free consultation.

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Denver Tax Attorney Free Consultation

The McGuire Law Firm provides a free consultation with a tax attorney so you can discuss your tax matters, facts and circumstances with an attorney.  John McGuire, the founder of The McGuire Law Firm has always felt it necessary to provide a free consultation to clients to determine the client’s needs and issues, and determine if the law firm can assist the client with their tax matters.

If you are experiencing any tax problem or issue with the Internal Revenue Service, or need tax assistance regarding an individual or business tax matter, contact The McGuire Law Firm to schedule your free consultation with a tax attorney in Denver.  A tax attorney at The McGuire Law Firm can assist you with the following matters:

IRS Tax Debts and Audits

Individual Tax Planning

Business Tax Planning

Tax Analysis Regarding the Sale or Transfer of Business Interests or Assets

Tax Matters Related to Estate Planning

Gifting

The video below has been prepared by a tax attorney at The McGuire Law Firm to provide further information related to the free consultation provided.

 

Please contact The McGuire Law Firm to schedule your free consultation with a Denver tax attorney.

Denver IRS Tax Debt Help

If you owe taxes to the IRS or are going through an IRS tax audit, a Denver tax attorney at The McGuire Law Firm can help you with your IRS issues.  A tax attorney can assist you with the following issues related to an IRS tax debt:

– Offer in compromise (IRS tax settlement)

– Installment Agreement (IRS payment plan)

–  Bank Levy Release

– Wage Garnishment Release

– IRS Tax Lien Issues

– Certificate of Discharge of Federal Tax Lien

– Subordination of Federal Tax Lien

– United States Tax Court Issues

Contact The McGuire Law Firm to speak with a tax attorney in Denver or Golden, Colorado.

What Property Does an IRS Tax Lien Attach To?

What property does an IRS tax lien attach to?  As a tax attorney, I am asked many questions regarding tax liens, and one such question is, what property does the tax lien attach to?  The article below has been prepared to provide additional information regarding the above question.  As always, you should discuss your particular tax matter with a tax attorney.  If you would like to speak with a tax attorney in Denver, Colorado, please feel free to contact The McGuire Law Firm to schedule a free consultation.

 

In many respects, the answer to the above question is easy because a tax lien issued by the Internal Revenue Service attaches to all property and rights to the property of the taxpayer.  Thus, this is a very broad and far reaching lien because it not only includes tangible property, but a tax lien also attaches to intangible property and rights to intangible property.  One exception exists as a tax lien does not attach an interest of an Indian in restricted land that is held by the United States.  Please see treasury regulation 301.6321-1 for information regarding this exception.

 

One important question or issue to consider is, how have courts interpreted the broad reach of a federal tax lien?  In general, courts have interpreted the broad language relating to tax liens to include many different types of property that vary greatly when compared against one another, and this includes contingent interests, future interests and contracts, which are all discussed below.

 

–          Future Interests: A future interest in property does not prevent a federal tax lien from attaching to such property.  Thus, if a taxpayer’s enjoyment to property is in the future, the tax lien can still attach to the property.  For example, if a taxpayer has a right under a contract or trust to receive payments or distributions of property, the tax lien will attach to the taxpayer’s entire right regardless of when the payments or distributions will be made.  See Rev. Rule 55-210 for more information regarding this issues.

–          Contingent Interests: A contingent interest would be an interest that a party will receive only if certain conditions occur.  For example, an individual may be a contingent beneficiary of a trust if the receipt of property requires them to perform certain tasks, live longer than another individual etc.  Courts have found that an IRS tax lien can attach to a contingent interest.

–          Executory Contracts: Courts have held that a tax lien can attach before performance within a contract agreement.  In Seaboard Surety Co. v. United States, 306 F.2d 855, 859 (9th Cir. 1962) the tax lien attached to taxpayer’s contract rights that taxpayer had assigned.  When the contract was performed, the government had a lien on the contract proceeds.  Other courts have held that contract rights under a partially executed contract had a realizable value and therefore, were a right to property that a tax lien could attach to.

In addition to the above issues, it is important to note that a tax lien attaches to property acquired by the taxpayer during the existence (or after the filing) of the tax lien.  Thus, a federal tax lien issued by the Internal Revenue Service attaches to after acquired property, meaning property the taxpayer acquires after the tax lien has actually been filed.  This is likely different from other liens such as a mortgage.

If the IRS has filed a tax lien against you or your business, it is recommend you speak with a tax attorney or other tax professional.  You can schedule a free consultation with a Denver tax attorney by contacting The McGuire Law Firm.

Denver IRS Tax Lien

Denver IRS Tax Representation

If you are experiencing problems with the Internal Revenue Service, you may want to consider hiring a tax attorney to represent you before the IRS.  The IRS procedure and current tax code can be confusing and scary to individuals and businesses that are not familiar with it.  Thus, hiring a tax attorney may save you time and stress in addition to money depending upon the circumstances. When a tax attorney represents you, they will file a Power of Attorney (Form 2848) and can receive the same notices you receive.  Furthermore, when the Power of Attorney is filed, the IRS will contact your Power of Attorney first.  John McGuire is a tax attorney at The McGuire Law Firm with offices in Denver and Golden Colorado.  As a tax attorney, John has represented clients before the IRS regarding the following issues & matters:

–          1040 Individual Income Tax Debts

–          941 Employment Tax Liabilities

–          941 Trust Fund Liabilities Assessed to Individuals

–          1120 Corporate Income Tax Debts

–          Individual Income Tax Audits

–          Corporate Income Tax Audits

–          Partnership Income Tax Audits

–          Substitute Filed Returns

–          Missing Tax Returns

–          IRS Installment Agreements & Payment Plans

–          IRS Offer in Compromise (Tax Settlement)

–          Federal Tax Lien Issues

–          Tax Lien- Certificate of Discharge

–          Tax Lien- Subordination Issues

–          Notices of Deficiency

–          US Tax Court Proceeding

In addition to his law degree, John obtained a specialized degree in taxation called an LL.M.  John applies his tax law knowledge on the above issues and when assisting clients with other tax and business matters.  You can contact The McGuire Law Firm to schedule a free consultation.

Your Rights as a Taxpayer Regarding an IRS Tax Lien

If the Internal Revenue Service has filed a tax lien against me, what are my rights as a taxpayer?  Because a tax lien filed by the IRS can have many negative implications, it is very important that you understand your rights as a taxpayer when the IRS files a Notice of Federal Tax Lien.  The article below has been prepared by a tax attorney at The McGuire Law Firm to provide information regarding your rights when the IRS files a tax lien.

Section 6320 of the Internal Revenue Code allows a taxpayer to challenge a Notice of Federal Tax Lien, request a Collection Due Process Hearing with the IRS Appeals Office, and seek a judicial review of the IRS Appeals determination.

The Notice of Federal Tax Lien issued by the Internal Revenue Service must be provided to the taxpayer in person, provided at the taxpayer’s home or principal place of business or forwarded via certified or registered mail to the last known address within five business days after the Notice of Federal Tax Lien has been filed for a tax period.  The lien notice will inform the taxpayer of the amount of the tax due and lien amount.  In terms of taxpayer right, the lien notice must inform the taxpayer of the taxpayer’s right to a hearing, the appeals procedure and the applicable procedures for the tax lien being released by the Internal Revenue Service.

If the taxpayer makes a Request for a Collection Due Process Hearing, the taxpayer will be contacted by the IRS Appeals Office, and a hearing date will be established.  An appeals officer who has no prior involvement with the taxpayer’s case, and who should act as an impartial party in analyzing the actions taken by the Internal Revenue Service, should be assigned to the case.

The Request for a Collection Due Process Hearing is made by preparing and filing Form 12153.  After filing the request, you should receive acknowledgement by the IRS that the request has been received and thereafter, you should receive a notice from the IRS calling for a hearing date.  At such time, you will be able to provide information and documents to the IRS appeals officer regarding your case and position.

If the IRS has filed a tax lien against your or your business, you have a serious tax problem with the IRS that needs to be addressed and resolved.  As a tax attorney, John McGuire has assisted many individual and business clients to resolve their tax matters, which in turn releases the federal tax lien that was filed by the IRS.  Furthermore, as a tax attorney, John McGuire knows your rights as a taxpayer and can assist you in resolving your IRS tax problems, IRS tax audits, IRS tax debts and other issues.  You can schedule a free consultation with a tax attorney in Denver, Colorado by contacting The McGuire Law.  A tax attorney can help you resolve your tax issues, and or assist with other tax matters.

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Petitioning United States Tax Court

The United States Tax Court is a federal trial court and hears cases relating to federal tax matters prior to the additional assessment of tax by the Internal Revenue Service.  It is important to note, that a taxpayer does not need to pay the tax prior to bringing their case before the US Tax Court, unlike some other federal courts regarding a tax controversy.

To bring an action in United States Tax Court, the taxpayer must file a petition.  For example, if a taxpayer receives a Notice of Deficiency, the taxpayer has 90 days to file a petition with the tax court stating their issues and reason for disagreeing with the Notice of Deficiency.  Furthermore, the taxpayer will state the facts that they are in relying on to support their position and argument.   Claims involving certain dollar amounts can be heard through an appeals hearing.  After the petition is filed, proceedings begin.  Cases can be settled between the taxpayer and IRS Counsel, and cases can be litigated.

You can call The McGuire Law Firm to discuss your tax questions & issues with a tax attorney- 720-833-7705.

What is an IRS Tax Resolution?

If you have an issue or matter with the IRS, you may wonder what your options are to resolve such issue.  Thus, what is an IRS tax resolution and what resolution options are available?  The article and video below have been prepared by a tax attorney to provide their opinion regarding what is an IRS tax resolution.

A “resolution” indicates that a problem or dispute has been resolved, or is being resolved.  Thus, in my opinion, an IRS tax resolution is when an IRS problem or dispute such as a tax audit or tax debt is resolved.  In terms of a tax debt, this debt could be resolved with an IRS payment plan (IRS installment agreement), an offer in compromise, having the debt placed in a currently non-collectible status and/or with a penalty abatement.  In terms of a tax audit, such resolution could be working with the auditor and receiving a no change letter, which means the IRS does not plan to assess additional tax for the tax period.  Further, a resolution to an audit could come in the form of successfully negotiating with the auditor regarding an item or items, or in regards to a specific section of the Internal Revenue Code or Treasury Regulations and the application of such law.

An IRS tax resolution could also come in the form of preparing tax returns.  Perhaps the IRS filed a substitute return for a taxpayer, and filing an actual & correct tax return will resolve the matter.  Furthermore, a resolution could come about through requesting innocent spouse relief or equitable relief depending upon the taxpayer’s circumstances.  If you have a tax matter before the IRS, contact a Denver tax attorney at The McGuire Law Firm.  Please view the video below for additional information.

Call The McGuire Law Firm and schedule a free consultation with a tax attorney in Denver, Colorado or Golden, Colorado.

How Can I Release an IRS Bank Levy?

Receiving a notice from your bank or the Internal Revenue Service that your bank account has been levied can be scary, confusing and frustrating.  Moreover, in addition to the money levied by the IRS from your bank account, the bank levy can cost you considerable money in bank fees and/or overdraft fees if the bank levy cause checks and payment to bounce.  The article and video below have been prepared by a Denver tax attorney to provide you with information regarding a bank levy and maybe more importantly, how a bank levy can be released.

When you owe money to the IRS, the IRS can levy your bank account after providing you with certain due process.  A levy is a taking of property, and when the IRS levies your bank account, they are in fact taking your money.  The IRS levy will attach to the monies in your bank account as of the date of the levy up and to the amount of the levy.  For example, if the IRS issued a levy to your bank in the amount of $5,000 and you only had $1,000 in the account as of the date of the levy, the levy would attach to the $1,000.  On the other hand, if the IRS issued that same bank levy and you had $6,000 in the account, the levy would attach to all $5,000 of which the levy was issued on.  Upon receipt of the bank levy, the bank is to hold the funds that attach to the levy for a 21 day period.  Thus, you have 21 days from the date of the levy in an attempt to have the levy released or partially released.  Therefore, the million dollar question is, how can I release my IRS bank levy?  There are multiple ways to have the IRS bank levy released which are discussed further below.

First, if you formalize an agreement, the IRS is likely to fully release the bank levy.  Please note, to formalize an agreement you will need to have all tax returns filed and be in compliance with current payments.  Second, if you can show the levy is creating an economic hardship, the IRS will generally release the levy.  An economic hardship could be that will be evicted or foreclosed upon because you cannot pay rent or the mortgage due to the bank levy, or you are unable to provide the other daily necessities due to the IRS bank levy.  Third, full payment of the tax debt should release the bank levy.  This seems obvious, and may not be attainable, but it can be an option.  Additionally, if you can show that the IRS bank levy is improper because the IRS has not afforded you your rights as a taxpayer and due process, the bank levy should be released.

Thus, there are multiple ways to have the IRS release a bank levy that is attaching to money in your bank account.  The best action in my opinion is to be proactive and never be in a position of which the IRS can levy your bank account.  For example, by formalizing an agreement or having a pending installment agreement or other proposal, a hold should be placed on the tax debts and thus you should not receive a bank levy.  You can discuss your tax matters and issues with a tax attorney in Denver by contacting The McGuire Law Firm and scheduling a free consultation.

A Denver tax attorney at The McGuire Law Firm can help you if the IRS has levied your bank account!  Call for a free consultation with a tax attorney!

Denver Tax Attorney Discusses Refiling of an IRS Tax Lien

Can an IRS tax lien be re-filed?  Can the IRS re-file the Notice of Federal Tax Lien?  How does the IRS renew a tax lien?  As a tax attorney I have been asked the above questions and therefore have prepared the article below to provide general information regarding such issue.  Please remember, that the article below is for informational purposes only.  Please contact your tax attorney or tax professional directly to discuss the current tax laws and your specific issues and circumstances.

To retain priority as of the initial date the tax lien was filed, a Notice of Federal Tax Lien filed by the Internal Revenue Service must be re-filed within the required re-filing period.  If a re-filing of the IRS tax lien does not occur, most notices of federal tax lien will self release 30 days after the date that is ten years from the assessment date. This self release of the IRS tax lien can occur regardless of an extension of the IRS collection statute or suspension or tolling of the IRS collection statute.  Under Internal Revenue Code Section 6323(g)(3)(A) the IRS’ notice of federal tax lien can be re-filed during the one year period that ends 30 days after the expiration of the ten years from the date of assessment date.

For example, assume Jeff was assessed a tax liability on April 1, 1995 and the Internal Revenue Service filed a tax lien on August 1, 1995.  The self releasing date of the IRS tax lien would be May 1, 2005.  Even if Jeff tolled the collection statute by filing bankruptcy or by submitting an offer in compromise, the period for re-filing the IRS tax lien would begin May 1, 2004 and continue until May 1, 2005.

Where will the IRS re-file the tax lien?  Again, this is a common question and will be discussed briefly below.  Typically, the IRS will file a tax lien in multiple locations, and thus the question a to where they will re-file or must re-file the tax lien is a legitimate question.  Because the IRS files tax liens in multiple offices, when re-filing the tax lien, the IRS must re-file in each of the initial offices whereby the initial liens were filed.  See Internal Revenue Code Section 6326(g)(3)(A).  When the IRS files the initial notices of federal tax liens (self releasing tax liens) in multiple offices regarding a particular tax assessment, if the IRS fails to timely file the re-filing notices in each of the offices, the assessment lien will release and the re-filing of the other tax liens is considered ineffective.  See Treasury Regulations Section 301.6323(g)-1(a)(1).  Thus, if the IRS fails to properly re-file the tax lien in one office, the underlying assessment lien is invalid and the re-filed tax liens would be ineffective.

You can discuss your tax lien questions and issues with a tax attorney at The McGuire Law Firm.  The McGuire Law Firm has offices in Denver, Colorado and Golden, Colorado.

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