Welcome to the Regan Tax Law Blog
Compromising Tax Obligations with the Internal Revenue Service (IRS) or the Minnesota Department of Revenue (MDR)
The Internal Revenue Service (IRS) and the Minnesota Department of Revenue (MDR) have the authority to settle tax liabilities by accepting less than full payment. The IRS can compromise for a variety of reasons. 1. A Doubt as to Collectability (DATC) offer (IRM...
Using the Collection Due Process (CDP) Hearing and the Collection Appeals Program (CAP) Procedures to Challenge the Internal Revenue Service’s (IRS) Decision to Pursue You for Unpaid Taxes.
You have many options to challenge the IRS's efforts to collect tax, penalties, and interest. Two common procedures are the Collection Due Process (CDP) hearing and the Collections Appeal Program (CAP) hearing, depending on the circumstances. The CDP program gives...
Challenging an Assessment After the IRS or the Minnesota Department of Revenue (MDR) Completes an Audit of Your Return and Starts Collection Actions Against You.
When it is too late to file a corrected tax return and you think the IRS or MDR assessment is wrong, you may still be able to challenge the assessment without going to court. For the IRS, the procedure is known as an Audit Reconsideration Request (AR). The IRS has the...
Negotiating a Payment Plan with the IRS or the Minnesota Department of Revenue
The IRS can accept payments for unpaid taxes, penalties, and interest through an installment agreement for the full amount or, if your financial situation shows you cannot pay the full amount, it can accept monthly payments for the time left on the statute of...
Hold on Certain IRS Collection Activities
The IRS is making efforts to take some pressure off taxpayers during the COVID 19 pandemic. By now, most taxpayers are aware that the filing of their 2019 Form 1040, and the payment of the tax relating to that Form, are not due until July 15, 2020. This was a good...
Actual Knowledge is Required For The IRS to Deny Separation of Liability Relief
There are three types of relief for an “innocent spouse,” commonly referred to as: innocent spouse relief; separation of liability; and, equitable relief. The requirements of each of these forms of relief are discussed elsewhere in this blog. In this article, I focus...
How Long Do I Need To Keep My Tax Records?
I am often asked how long do I have to maintain records to protect myself against actions by the Internal Revenue Service? Along with that question comes the question about whether the IRS has the burden of proving a taxpayer owes the tax (assuming it met its burden...
Notice of Right to a Collection Due Process Hearing – Is the IRS Trying to Hide the Ball?
The IRS must give a taxpayer written notice, sent by certified mail, at least 30 days before it takes any collection action like a bank levy or a wage levy. IRC Section 6331(d). In 1998, Congress added the requirement that the IRS advise the taxpayer of his or her...
Late Returns and Discharging Taxes in Bankruptcy
If you want the chance to discharge your individual income taxes in bankruptcy, in Minnesota, file your returns. This is still an option if you live in the Eighth Circuit (this includes Minnesota). It is not an option in some other circuits. More courts are accepting...
Employment Taxes and Early Intervention
The IRS appears to be more serious about pursuing and prosecuting companies that do not pay their employment taxes. The IRS's first step to address this problem with unpaid employment taxes is to contact these companies as early as possible, hoping this early...