Randolph Law Firm, P.C.

Las Vegas Tax Law Blog

Getting relief from an IRS tax lien: a brief look at tax lien subordination

In previous posts, we’ve looked at several avenues of relief available to taxpayers dealing with an IRS tax lien. As we noted before, the best way of addressing a tax lien is to pay the underlying debt so that the IRS releases the lien. Taxpayers who dispute the tax bill should, of course, address any errors through the appeals process before paying the bill.

Another potential avenue of relief from a tax lien, aside from the various grounds for discharge of property from the lien, is subordination. Although subordination does not remove the lien, it does allow the taxpayer’s creditors to take priority over the IRS, which can give the taxpayer a better chance of obtaining a mortgage or other type of loan. 

The IRS is delegating tax collection duties

When people are already under the pressure of high debt, it may be easier for them to fall victim to schemers who use even more pressure to get them to turn over the money. If you have received such calls, you know how intimidating they can be, perhaps threatening you with terrifying consequences.

When your debt includes tax delinquencies, you may wonder how far the government will go in collecting that debt. Obviously, the laws are more liberal when it comes to Uncle Sam, but how can you know when you are talking to a legitimate debt collector or a fraud trying to rip you off?

A brief look at tax liens, and getting the IRS to release them, P.2

Last time, we began looking at the topic of releasing tax liens. As we noted, the best way to address the issue is to simply pay the debt, though taxpayers shouldn’t resign themselves to a debt with which they disagree. If the debt is properly calculated, paying it off will result in the full release of the tax lien in fairly short order.

In some circumstances, there are other ways to address tax liens aside from paying off the debt, which isn’t always possible. One possible option is to pursue a discharge of property, which removes the tax lien from specific property. To qualify for discharge, certain conditions must be met. 

A brief look at tax liens, and getting the IRS to release them, P.1

We previously wrote on this blog about the return of Floyd Mayweather Jr., out of return, to engage in a match with UFC champion Conor McGregor. As we noted, Mayweather’s motivation for taking on the match is largely that he needs the money to satisfy the IRS, which claims that he owes millions in unpaid taxes from 2015, which was his last major fight.

Since we began looking at this story, it appears that the IRS has released Mayweather from a $3.3 million tax lien after he paid that amount off. Mayweather still owes plenty, though, as the lien for $22.2 million still stands. Mayweather apparently also owes another $7.2 million from 2010.

Work with skilled attorney to build strong tax case, obtain IRS award of fees, P.2

Previously, we began looking at the topic of attorney fees associated with fighting IRS allegations. Specifically, we’re looking at the requirements for a taxpayer to obtain payment of attorney fees. We’ve already mentioned the requirements that the taxpayer must prove he or she was the prevailing party, and the IRS’ burden of proving that its position was reasonable.

Several other requirements apply to IRS payment of a taxpayer’s attorney fees. One of these is that the taxpayer must be cooperative in resolving the tax dispute. It specifically means that the taxpayer must satisfy all the administrative requirements associated with each step of the process, both in the audit and the appeals process. A taxpayer must make a good faith effort to comply with the process, rather than digging in his or her heels all the way to Tax Court. 

Work with skilled attorney to build strong tax case, obtain IRS award of fees, P.1

When an individual is targeted by the IRS for nonpayment of taxes, there can be significant costs involved. The guidance and advocacy of experienced legal counsel is indispensable when facing a tax audit, or charges of tax negligence or fraud, but there are costs associated with legal representation.

This is especially the case when the IRS is mistaken in its allegations and a taxpayer is required to secure the services of an attorney to fight the IRS on charges of tax negligence in the tax appeals process, or in Tax Court. Fortunately, taxpayers are able to collect attorney fees from the IRS in some circumstances, and this can help a great deal in covering the costs of representation. 

Negative tax audit results? Maybe you should file an appeal

Not many situations can strike the same type of fear that you and many other Nevada residents may feel as when you get a notice of an IRS audit. Because dealing with the IRS in any form can cause anxiety and stress, the idea of an audit may leave you feeling at a loss. If the outcomes of an audit suggest that you owe the government more money, you may feel especially disheartened by the situation.

Luckily, you do not have to simply accept the results of a tax audit. In fact, you may have the opportunity to appeal the results of such proceedings through the IRS Office of Appeals. As the name suggests, this office handles appeals for audit results that individuals find unsatisfactory.

Champion boxer files appeal with IRS for extra time to generate money for unpaid taxes

Champion boxer Floyd Mayweather is reportedly in trouble with the IRS over unpaid taxes. According to the IRS, Mayweather owes a total of $22.2 million in unpaid taxes. Over the course of his career, Mayweather has earned roughly $700 million for the 49 matches he has done. Mayweather earned about $220 million from a 2015 fight with Manny Pacquiao, and the IRS is claiming that he failed to fully meet his tax obligations on that payout.

Mayweather, who has come out of retirement to generate funds for the unpaid taxes, filed an appeal requesting a reprieve on payment of the tax debt until he is able to cash in on a much publicized fight with Irish MMA fighter Conor McGregor. Mayweather has also requested a decreased tax penalty in connection with the unpaid taxes. 

Discharge of debt on late-filed tax returns: a brief look at some recent cases

We’ve been looking in recent posts at the discharge of tax debt in bankruptcy. As we noted, there are a variety of limitations and requirements on the discharge of tax debt in bankruptcy. One important consideration in this context is whether tax debt associated with late-filed tax returns can be discharged in bankruptcy.

The general rule on this issue is that tax debt may be discharged in bankruptcy if the return meets the applicable filing requirements. The question of whether late filed tax returns meet these requirements is one that has rather recently been addressed in federal court. Two recent cases dealt with the issue, coming down in favor of denying discharge for these debts. 

Bankruptcy and discharge of tax debt: a brief look at some basics, P.2

In our previous post, we began looking at the issue of discharging tax debt in bankruptcy. As we noted, discharge of any debts in bankruptcy is dependent on fulfilling the conditions the court places on the debtor, whether in a repayment plan or in a plan involving liquidation of assets. Then, discharge of tax debt is subject to certain limitations.

Not only are there limitations on the type of tax debt that may be forgiven in bankruptcy, there are other requirements for the discharge of tax debt. A debtor must, first of all, provide timely notification to the IRS or state tax authority of the pending bankruptcy. The debtor must also not have attempted to file a fraudulent return or to otherwise willfully attempt to evade or defeat tax obligations. Proving fraud or willful attempt to evade is the burden of the taxing authority. 

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