Tax Controversies

If the liable taxpayer, after Notice and Demand for Payment, neglects or refuses to pay, then the balance due (tax, penalties, interest, costs) shall be a Lien, in favor of the State of Illinois, and shall attach to all property and rights to property, belonging to the taxpayer, whether real or personal.  Unless another date is specifically fixed by law,…

If the taxpayer has delinquent Indiana taxes, then the Indiana Department of Revenue (“IN-DOR”) shall issue a Demand for Payment (“AR-40”).  The taxpayer has twenty (20) days, from the date, of the AR-40, to full pay the delinquent taxes or to show reasonable cause for not paying. If, after the twenty (20) day time period, the taxpayer fails to pay…

The Statute of Limitations for Collection, is a time limit, on the Internal Revenue Service (“IRS”), in which to collect delinquent taxes, from the taxpayer, for a particular tax year. In general, the IRS has ten (10) years, after the date of assessment, in which to collect.  This ten (10) year deadline is referred to as the Collection Statute Expiration Date (“CSED”). …

Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes. If it is a joint tax liability and the secondary taxpayer is deceased, then pursue tax collection from the primary taxpayer.  If it is a joint tax liability and the primary taxpayer is deceased,…

As soon as practicable after a lawful assessment, the Illinois Department of Revenue (“IL-DOR”) shall issue a Notice and Demand for Payment (“N&DFP”), to the taxpayer, for any unpaid portion, of the assessment.  The N&DFP shall be left at the dwelling or usual place of business, of the taxpayer, or shall be sent by mail, to the taxpayer’s, last known…

If a Notice of Deficiency (“NOD”) has been issued and a Protest has been filed by the taxpayer, then the amount, of the tax deficiency, shall be deemed assessed, upon the date, when the decision, of the Illinois Department of Revenue, becomes final. Sixty (60) days after the date of the NOD, if the taxpayer has not filed a Protest,…

The Internal Revenue Service (“IRS”) can seek to collect on the taxpayer’s liability, from the property, of a third (3rd) party, when the third (3rd) party is holding the taxpayer’s property as a nominee. The nominee theory is based on the premise that the taxpayer ultimately retains the benefit, use, or control over property that was allegedly transferred to the…

Whether it be the Indiana Department of Revenue, the County Sheriff, or a privately contracted collection agency that is attempting to collect delinquent Indiana taxes, the power to Levy on the taxpayer’s bank accounts, salary, wages, or other property is available. In general, the County Sheriff shall only have one hundred twenty (120) days, from the date that the Judgment…

The Federal Tax Lien (“FTL”) is not self-executing — meaning that the FTL encumbers the taxpayer’s property but it does not collect the delinquent taxes.  To enforce the collection of delinquent taxes, the Internal Revenue Service (“IRS”) utilizes the Federal Tax Levy (“Levy”), as an administrative collection tool, by which to take custody of the taxpayer’s property, in order to satisfy any…

If the taxpayer:  (i) files an Indiana tax return with a balance due and without payment; or (ii) does not resolve the delinquent Indiana taxes at the proposed assessment stage (payment or protest), then the Indiana Department of Revenue (“IN-DOR”) will issue a Demand for Payment (“AR-40”). Within twenty (20) days of the date of the AR-40:  (i) full payment must be made to the IN-DOR; or (ii) payment arrangements must…