Tag Archives: Offer in compromise

Another Tax Bankruptcy

Today TaxMama hears from Toni in Colorado with this problem. “We filed for bankruptcy after a foreclosure and two years of hard struggle. My husband had $48,000 in taxes for 2005. Is there a way to file ‘’tax bankruptcy’’ this far out? Our bankruptcy was discharged March 12, 2008. I’m working, my husband is not, […]

Owe my Soul To The IRS

Today TaxMama hears from Debra in Georgia with these problems. “I had almost no income in 2007 from losing my job. I had to live on withdrawals from my 401k. Due to the penalties I am still paying this debt to the IRS. My home was also foreclosed on in the same year. Could I […]

Reporting Mexican Income

Today TaxMama hears from B in Washington State, with this question. “If I have passive rental income of $100,000 from a business in Mexico that goes into a trust in Belize, am I required to report that on my 1040 in the US? I am a US citizen and live in the US 100% of […]

Tax Simplification and Compassion Recommends Taxpayers Advocate

In this year’s annual report to Congress from Nina E. Olsen, the Taxpayers Advocate, she touches upon areas that have been troubling TaxMama for quite some time. In particular, the fact that millions of taxpayers will be facing potential cancellation of debt issues, hardships paying last year’s taxes, and unregulated tax professionals. IRS Commissioner Doug […]

Preparing Offer in Compromise

Today TaxMama hears from Michael in AZ who’s grousing. “According to the IRS I owe over $10,000 dating back to 2000. I recently filed 2003-2007. My files show, before penalties and fees, approximately $8,000. I was told “less than 10% of those who self file for an offer in compromise get approved. several tax places […]

IRS Lost My Appeal

Today TaxMama hears from Bernie in Georgia who’s upset. “I filed an offer in compromise that was rejected. I prepared an appeal and took it to the IRS office, who stamped it received. That office has apparently “lost” my appeal. What do I do next, aside from re-doing the appeal and sending the copied paper […]

Small Businesses Benefit from 2008 Economic Stimulus Act Depreciation Provisions

Courtesy of John Berger at the Internal Revenue Service Businesses that have bought assets – or are planning to do so – in 2008 can benefit from the same legislation that is delivering payments to individuals this year. The Economic Stimulus Act of 2008 increased the maximum amount for depreciation under section 179 of the […]

National Taxpayer Advocate Report to Congress

National Taxpayer Advocate Releases Report to Congress; Identifies Priority Challenges and Issues for Upcoming Year WASHINGTON — National Taxpayer Advocate Nina E. Olson today delivered a report to Congress that identifies the priority issues the Office of the Taxpayer Advocate will address in the coming fiscal year. Among the key areas of focus will be […]

IRS Levy

Today TaxMama hears from Mike in Arizona who has this problem. “I have a notice of levy for three years of back taxes. I can’t afford full payment but can send about $300 per month to keep them satisfied. “

$100,000 Low Income Grants

IRS Accepting Applications for Low Income Taxpayer Clinic Matching Grants WASHINGTON — National Taxpayer Advocate Nina E. Olson announced today that the 2008 Low Income Taxpayer Clinic (LITC) grant application process is now open. The LITC grant program is a federal program administered by the Taxpayer Advocate Service, an independent organization within the IRS that […]

Paying Corp Taxes

Today TaxMama hears from Alison in Los Angeles, who says “I have to send a payment with my corporate extension (Form 7004). How do I get the payment voucher? The instructions say I can’t send a check.” Dear Alison, The Form 8109-B not an easy form to get at the last minute. http://www.irs.gov/pub/irs-pdf/f8109b.pdf You can […]