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Published Articles
The attorneys at Segal, Cohen & Landis have written articles and legal briefs on a wide range of topics pertaining to tax controversy which have been published in reputable outlets such as Thompson Reuters, Haute Lawyer along with local and national news platforms. They have also served as legal authority in several court cases. Some of those articles are reproduced here for your reference.
IRS Interest Accrual and Abatement
Many taxpayers believe that if they pay an outstanding tax bill, the IRS will forgive the interest, or, if they set up a payment plan with the IRS, interest will no longer accrue on the unpaid balance. Unfortunately for the taxpayer, neither of these are true. However, there are limited circumstances that will support the removal of interest from your tax bill. This article explores the amount of interest that the IRS charges on unpaid federal tax, the conditions that support the abatement of interest, and the alternatives to interest abatement. What is the IRS Interest Rate and How…
IRS Partial Pay Installment Arrangements An Overlooked IRS Resolution Alternative
When you are faced with an overwhelming tax liability that you can’t fully pay based on your current financial circumstances, and where you don’t have enough savings to make a lump sum payment to the IRS as part of a settlement via an offer in compromise, you might consider a partial pay installment agreement (PPIA). Most taxpayers are not aware of this IRS payment plan which allows for affordable monthly payments based on the taxpayer’s available disposable income and results in the taxpayer paying less toward an outstanding tax debt over the length of the plan than would otherwise be…
Discharging Tax Debt in Bankruptcy
While it is true that most tax debt cannot be eliminated by filing for bankruptcy protection, under some circumstances outstanding tax liabilities can get discharged when you or your business become insolvent. It is worthwhile to understand when, how and to what extent a bankruptcy proceeding will result in the successful removal of your tax debt. This article explores bankruptcy fundamentals in the context of tax liabilities and identifies the circumstances that support the discharge of tax debt via bankruptcy, including a discussion of the survivability of tax liens as well as alternatives to bankruptcy. Bankruptcy in the Context of…
Understanding the Substitute for Return: When the IRS Files a Tax Return for You
Each year hundreds of thousands of taxpayers forgo filing their federal income tax returns. If you are a nonflier or have wondered what the risk may be for opting out of your annual filing requirement, you might be surprised to learn that in these situations the IRS can file a tax return for you, assess tax against you, and then pursue collection of the tax including interest and penalties. This article explores the basis for an IRS Substitute for Return, the process that it involves, and how taxpayers can best respond to minimize their tax liability. What is a Substitute…
The IRS Offer in Compromise: A Taxpayer’s Guide to Settlement with the IRS
While it is not a myth that some taxpayers can settle significant tax debt with the IRS for considerably less, the circumstances which support this type of resolution are quite specific. In fact, the IRS accepts less than 30% of all submitted offers in compromise each year. This article explores which taxpayers might qualify to settle with the IRS via the offer in compromise and describes what that process entails. What is an IRS Offer in Compromise? An offer in compromise (OIC) is an agreement between the taxpayer and the Internal Revenue Service IRS that settles the taxpayer’s outstanding…
IRS Form 3520: Reporting Requirements Involving Foreign Trusts and Foreign Gifts
U.S. taxpayers who have participated in transactions involving foreign trusts or received large sums of money from abroad may be required to inform the IRS of these activities via Form 3520. This article explores who needs to file this form, what must get reported, and the consequences for failing to do so. What is IRS Form 3520 and Who Needs to File It? IRS Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, is an informational return which does not involve the calculation of a tax liability or a refund but rather provides…