Question

What do you do if you do not have enough resources to pay the tax? Explain. (Note: IRS pub. 565)

7. You paid the tax and want to sue? A. How long do you have to claim a refund? (Note: IRS pub 556)

B. Where do you sue? Explain.

8. Where does the IRS file its tax lien? (Note: IRS pub. 1468)

Answer 1

ANSWER

What do you do if you do not have enough resources to pay the tax?

- If one is not having enough resources to pay the taxes and the amount due to the government cannot be paid fully , even after all of these conditions return should still be filed by the individual to avoid any upcoming penalties or interest

- IRS ( internal revenue service ) should be intimated about such conditions , the department sometimes provides an upper hand extension for clearing out the dues or an agreeable agreement is presented to the individual , but even though these benefits are granted an individual may be still liable to pay the interest charges levy.

- If any individual is facing some unprecedented situations and is not even able to afford basic living expenses then they can even apply for IRS hardship payment alternatives , for qualifying that form 433-F or 433-A ( collection information statement) needs to be filled. If after reviewing the application IRS finds it to be genuine certain relaxations are provided by the department


You paid the tax and want to sue?

- Yes , IRS ( internal revenue service ) department can be sued , all the cases filed against the department are listed and heard at a special court made for these type of cases only named as UNITED STATES TAX COURT

- One can sue the IRS department even without paying the taxes , this came in effect after the launch of UNITED STATES TAX COURT , however the interest on the unpaid taxes will continue to accrue.


How long do you have to claim a refund?

- There’s always a risk of losing the refund if an individual does not file their return ,
If any refund is due for the estimated taxes then return must be filed to claim the refund within 3 years of the return due date

- Refunds against taxes are holded by the department when past due returns are not filed and paid , the above mentioned rules applies while filing tax credits as well against the earned income credit


Where do you sue?

- There are preferably three courts where cases regarding IRS departments are listed and the department can be sued in any of the three after following the necessary pre-requirements before filing a legal notice

(i) The United States Court of Federal Claims
(ii) The United States Tax Court
(iii) Local United States District Court


Where does the IRS file its tax lien?

- A tax lien is a Legal claim made by the government when an individual fails to pay a tax debt against them , this particular lien provides the power to government against that particular individual’s assets , property e.t.c

- IRS files and issues a public document ( notice of federal tax lien ) to be sent to the creditors of that particular individual , updating them about the uptake of government on the assets of that individual

- This notice is also filed with the local authorities being secretary of state offices e.t.c ,the notice is also sent to consumer credit reporting agencies , which may leave an impact on individuals credit rating