Archive for National Taxpayer Advocate Purple Book

Feel Like You Are Not Responsible For A Debt Owed By Your Spouse Or Ex-Spouse?

ERIN COLLINS - NATIONAL TAXPAYER ADVOCATE

Taxpayer Advocate Service Tax Tip

Saying “I do” doesn’t necessarily mean you’re responsible for your spouse’s or ex-spouse’s debts.

If your spouse has a debt (this debt could be for any number of things – child support, spousal support, a federal debt (e.g., student loans), or a federal tax debt) and you file your taxes using the Married-Filing-Joint tax filing status, the IRS can apply your refund to one of these debts, which is known as an “offset”. Or they can take a collection action against you for the tax debt you and your spouse owe, such as filing of the Notice of Federal Tax Lien or issuing a levy. However, if you’re not legally responsible for the past-due amount, you may still be entitled to receive your share of the refund or request relief from joint and several liability, depending on the facts of the situation.

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The Taxpayers Journey Illustrated On A Map – The Roadmap Every Taxpayer Must See

NTA

The National Taxpayer Advocate who works on behalf of U.S. taxpayers recently built a road map of the taxpayers journey. If you ever wondered what a tax professional does for their clients, you should take a close look at this extraordinary map. It is a stunning illustration every taxpayer and tax professional should see.

The map below illustrates, at a very high level, the stages of a taxpayer’s journey, from getting answers to tax law questions, all
the way through audits, appeals, collection, and litigation. It shows the complexity of tax administration, with its connections
and overlaps and repetitions between stages. As you can see from its numerous twists and turns, the road to compliance isn’t
always easy to navigate. But we hope this map helps taxpayers find their way. A project of the Taxpayer Advocate Service.

The Taxpayer Roadmap 2019

 

 

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National Taxpayer Advocate: Tax Responsibilities Of US Citizens And Resident Aliens Living Abroad

Nina Olson-National

If you’re a U.S. citizen or resident alien, the rules for filing income tax returns and paying estimated tax are generally the same whether you’re in the United States or abroad. No matter where you live, your worldwide income is subject to U.S. tax.

To understand and fulfill your tax responsibilities as a U.S. Citizen and resident alien living abroad, there are a few things you need to do:

  • Figure out if you’re required to file – this generally depends on your income, filing status, and age.
  • Consider which exclusions and deductions for income and housing that you may qualify for.
  • Know how your type of employment may affect your tax liability.
  • Have what you need and know where to file your tax return.

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National Taxpayer Advocate Nina Olson’s Personal Message

Nina Olson Personal Message

On this date eighteen years ago – March 1st, 2001 – I walked through the doors of the IRS headquarters building in Washington, DC to begin my tenure as National Taxpayer Advocate of the United States.  It was the beginning of an always fascinating, usually complicated, and yes, sometimes frustrating journey.  Along the way, I have been privileged – and I use that word in every sense – to have worked with extraordinary people – in the Taxpayer Advocate Service, in the IRS, in Treasury, in Congress, and most importantly, directly with taxpayers and their representatives.

In addition to celebrating my March 1st anniversary, I crossed another milestone a few weeks ago.  In the eyes of the Internal Revenue Code, I am now “elderly” – that is, I am now of the age to qualify for the additional credit for the elderly under IRC § 22.  This has caused me to reflect on how I want to proceed with the remaining stages of my life, and I have concluded that I am ready to move on to a new stage.

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National Taxpayer Advocate’s Purple Book: A Compilation Of Legislative Recommendations

Nina Olson And The Purple Book

As we review the Purple Book of Legislative Recommendations  published by Nina Olson and team at the National Taxpayer Advocates office, we bring to your attention Recommendations To Improve Assessment And Collection Procedures. This is an excellent source to understand the current challenges facing taxpayers and their interactions with the IRS.

We highly recommend you become aware of exactly what the National Taxpayer Advocates office is working on and the recommendations they are making to help taxpayers today.

A Compilation Of Legislative Recommendations

  1. Continue To Limit The IRS’s Use Of Math Error Authority
  2. Provide Additional Time For Taxpayers Outside U.S. To Request Abatement Of Math Errors
  3. Require IRS To Waive User Fees For Taxpayers Who Enter Low Cost Installment Agreements
  4. Improve The Offer In Compromise Program Accessibility By Repealing Partial Payment
  5. Modify Requirement The Office Of Chief Counsel Review Certain Offers In Compromise
  6. Require IRS To Mail Notices Quarterly To Taxpayers With Delinquent tax Liabilities
  7. Protect Retirement Funds From IRS Levies In Absence Of Flagrant Conduct By Taxpayer
  8. Toll Time Periods Requesting Return Of Levy Proceeds While Taxpayer Financially Disabled
  9. Authorize IRS To Release Levies Causing Economic Hardship For Business Taxpayers
  10. Strengthen Taxpayer Protections In Filing Notices of Federal Tax Liens
  11. Provide Taxpayer Protections Before IRS Recommends Filing Lien On Principal Residence
  12. Provide Collection Due Process Rights To Third Parties Holding Legal Title To Property
  13. Extend Time Limit For Taxpayers To Sue For Damages For Improper Collection Actions
  14. Codify Rule Taxpayers Can Request Equitable Relief Before Expiration Of Collections
  15. Direct IRS To Study Feasibility Of Using Automated Formula To Identify Hardship Cases
  16. Amend IRC 6306(d) To Exclude Taxpayer Debts With Income Less Than Federal Poverty Level

 

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