IRS Nominee or Alter Ego + What You Need To Know, Foremr IRS

Posted on by Michael Sullivan Fresh Start Tax Expert

 

As a former IRS agent and teaching instructor there were occasions that taxpayers  transfer assets beyond the reach of the Internal Revenue Service.

The IRS has ways of reaching those assets that were transferred and claiming them backthrough various methods.

1. There are a variety of situations where a third party can be held liable for the tax liability of another. This IRM discusses the different legal theories for third party liability.
A. Transferee liability
B. Fiduciary liability
C. Successor liability
D. Nominee or alter ego

3. Although these theories require the application of different laws and different methods for collection, common elements exist in any analysis of third party liability. The legal theory that is pursued by the Service will ultimately depend on the specific facts of a case.

4. Because the legal theory applied depends on the specific facts, Field Collection will want to fully develop the factual background for each case. This includes, but is not limited to, any information or facts regarding the transfer and the relationship between the parties.

5. Many of the legal theories for third party liability also involve the assertion of fraud by the Service and, therefore, any evidence or facts suggestive of fraud should also be included when developing the factual background.

6. This IRM section also discusses the different methods available to the Service for collecting tax liability from a third party. See IRM 5.17.14.4, Methods of Collecting from a Transferee or Fiduciary.

A. The Service can use administrative remedies where a Notice of Federal Tax Lien was properly filed before a transfer to the third party. In these cases, the federal tax lien can be enforced by lien or levy without first making an assessment against the transferee under IRC § 6901 or filing suit in district court.

B. The Service can also use administrative collection procedures to collect from a taxpayer’s property that is held by a nominee or alter ego.

C. Where no federal tax lien attaches to the property before it is transferred to a third party, the Service must generally make an assessment against the transferee using the IRC § 6901 procedures before pursuing administrative collection procedures. In these situations, the Service can also file suit in district court to seek to set aside the fraudulent conveyance.

8. These methods of collection are all discussed in greater detail in the provisions that follow. A determination of the best approach to take will depend upon the particular facts of the case.

After the factual background of a case has been fully developed, Area Counsel is available to assist Field Collection in determining such matters as the applicable state law, or the best legal theory to proceed under given the specific facts. See IRM 25.3.2.2.1, Area Counsel Assistance.

 

 Nominee or Alter Ego.

The government may collect a taxpayer’s liability from the assets of a third party if the third party is holding assets as the taxpayer’s nominee or alter ego.

A. 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 a third party.

Thus, the nominee theory focuses on the relationship between the taxpayer and the transferred property. A transfer of legal title may or may not have occurred, but the government does not believe a substantive transfer of control over the property in fact occurred.

B. The alter ego theory allows collection from the taxpayer’s alter ego when the taxpayer and the alter ego are so intermixed that their affairs are not readily separable.

Thus, the alter ego theory focuses on the relationship between the taxpayer and the alter ego.

Note:

As explained in IRM 5.17.14.6, Nominees and Alter Ego Doctrines, the nominee and alter ego doctrines are separate theories.

Posted in Tax Help | Leave a comment

IRS Fiduciary Liability + What You Needto Know + Former IRS

Posted on by

  As a former IRS agent and teaching instructor there were occasions that taxpayers  transfer assets beyond the reach of the Internal Revenue Service. The IRS has ways of reaching those assets that were transferred and claiming them backthrough various methods. 1. There are a variety of situations where a third party can be held liable for the tax liability of another. This IRM discusses the different legal theories for third party liability. A. Transferee liability B. Fiduciary liability C. Successor liability D. Nominee or alter ego 3. Although these theories require the application of different laws and different methods for collection, common elements exist in any analysis of third party liability. The legal theory that is pursued by the Service will ultimately depend on the specific facts of a case. 4. Because the legal theory applied depends on the specific facts, Field Collection will want to fully develop the factual background for each case. This includes, but is not limited to, any information or facts regarding the transfer and the relationship between the parties. 5. Many of the legal … Continue reading

Posted in Tax Help | Leave a comment

IRS Successor Liability + What You Need To Know, Former IRS

Posted on by

  As a former IRS agent and teaching instructor there were occasions that taxpayers  transfer assets beyond the reach of the Internal Revenue Service. The IRS has ways of reaching those assets that were transferred and claiming them backthrough various methods. 1. There are a variety of situations where a third party can be held liable for the tax liability of another. This IRM discusses the different legal theories for third party liability. A. Transferee liability B. Fiduciary liability C. Successor liability D. Nominee or alter ego 3. Although these theories require the application of different laws and different methods for collection, common elements exist in any analysis of third party liability. The legal theory that is pursued by the Service will ultimately depend on the specific facts of a case. 4. Because the legal theory applied depends on the specific facts, Field Collection will want to fully develop the factual background for each case. This includes, but is not limited to, any information or facts regarding the transfer and the relationship between the parties. 5. Many of the legal … Continue reading

Posted in Tax Help | Leave a comment

IRS Transferree Liability + What You Need To Know, Former IRS

Posted on by

    As a former IRS agent and teaching instructor there were occasions that taxpayers  transfer assets beyond the reach of the Internal Revenue Service. The IRS has ways of reaching those assets that were transferred and claiming them backthrough various methods. This article will talk about the IRS transferee liability and what you need to know. Below you will find the different situations were third-party can be held liable for the tax liability and the theories that apply. 
Third Party Liability Overview 1. There are a variety of situations where a third party can be held liable for the tax liability of another. This IRM discusses the different legal theories for third party liability. A. Transferee liability B. Fiduciary liability C. Successor liability D. Nominee or alter ego 3. Although these theories require the application of different laws and different methods for collection, common elements exist in any analysis of third party liability. The legal theory that is pursued by the Service will ultimately depend on the specific facts of a case. 4. Because the legal theory applied depends … Continue reading

Posted in Tax Help | Leave a comment

How to Get Your W-2 + What You Need to Know

Posted on by

  IRS Can Help Taxpayers Get Form W-2. When employers go out of business it becomes more difficult. Most taxpayers got their W-2 Forms by the end of January. Form W-2, Wage and Tax Statement, shows the income and taxes withheld from an employee’s pay for the year. Taxpayers need it to file an accurate tax return. If a taxpayer hasn’t received their form by mid-February, here’s what they should do: • Contact their Employer. Taxpayers should ask their employer (or former employer) for a copy of their W-2. Be sure the employer has the correct address. • Call the IRS. If a taxpayer is unable to get a copy from their employer, they may call the IRS after Feb. 27. The IRS will send a letter to the employer on the taxpayer’s behalf. The taxpayer will need the following when they call: ◦ Their name, address, Social Security number and phone number; ◦ Their employer’s name, address and phone number; ◦ The dates they worked for the employer; and ◦ An estimate of their wages and federal income tax … Continue reading

Posted in Tax Help | Leave a comment

Owing IRS Back Taxes + Real Tax Solutions = Former IRS + Ft.Lauderdale, Miami, West Palm Beach

Posted on by

  There are different Solutions to resolve Back IRS Problems if you owe back taxes, Since 1982, Former IRS Agents who Know the System.  954-492-0088   We haveworked in the local South Florida IRS tax offices. Our local tax firm firm will review with you the various options to help, get rid of, relieve or eliminate you of your current IRS tax debt in obligation.There are multiple solutions. We will walk through all the programs to see what programs you qualify. Since 1982, Former IRS.   We are an affordable professional tax firm that can offer you a free initial tax consultation and walk you through the process if you have a back balance due the Internal Revenue Service. If you have balance due on back taxes and are looking to set up a payment agreement, file firm offer in compromise to settle your back tax debt or you need to file back tax returns call us today for a free initial tax consultation. We have over 95 years of direct IRS work experience. FST IRS Experience: We have worked … Continue reading

Posted in Tax Help | Leave a comment

Dealing With IRS Tax Debt + Your Available Options + Former IRS Speaks

Posted on by

      There are different Solutions to resolve Back IRS Problems if you owe back taxes, Since 1982, Former IRS Agents who Know the System.   Our firm will review with you the various options to help, get rid of, relieve or eliminate you of your current IRS tax debt in obligation.There are multiple solutions. We will walk through all the programs to see what programs you qualify. Since 1982, Former IRS. We are an affordable professional tax firm that can offer you a free initial tax consultation and walk you through the process if you have a back balance due the Internal Revenue Service. If you have balance due on back taxes and are looking to set up a payment agreement, file firm offer in compromise to settle your back tax debt or you need to file back tax returns call us today for a free initial tax consultation. We have over 95 years of direct IRS work experience. FST IRS Experience: We have worked out of the local, district, and regional tax offices of the Internal Revenue … Continue reading

Posted in Tax Help | Leave a comment

Different Ways to STOP Your IRS Tax Problems + Ft.Lauderdale, Miami, West Palm Beach

Posted on by

  There are different Ways to Solve Back IRS Problems if you owe back taxes, Since 1982, Former IRS Agents who Know the System. Get Free Advice.   We will review with you the various options to help, get rid of, relieve or eliminate you of your current IRS tax debt in obligation. We will walk through all the programs to see what programs you qualify. Since 1982, Former IRS. We are an affordable professional tax firm that can offer you a free initial tax consultation and walk you through the process if you have a back balance due the Internal Revenue Service. If you have balance due on back taxes and are looking to set up a payment agreement, file firm offer in compromise to settle your back tax debt or you need to file back tax returns call us today for a free initial tax consultation. We are an affordable IRS settlement tax firm. It only takes one free Tax Consult. We have over 95 years of direct IRS work experience. FST IRS Experience: We have worked out … Continue reading

Posted in Tax Help | Leave a comment

Itemize or Taking the Standard Deduction + What You Need to Know

Posted on by

  Itemize or Choose the Standard Deduction   Most taxpayers claim the standard deduction when they file their federal tax return. However, some filers may be able to lower their tax bill by itemizing. Find out which way saves the most money by figuring taxes both ways.   Tips to help taxpayers decide:   1. Use IRS Free File. Most taxpayers qualify to use free, brand-name software to prepare and file their federal tax returns electronically. IRS Free File is the easiest way to file. Free File software helps taxpayers determine if they should itemize. It files the right tax forms based on the answers the taxpayer provides. Free File software does the math and allows the user to e-file the tax return – for free. Taxpayers can check on other e-file options if they can’t use Free File. 2. Figure Your Itemized Deductions. Taxpayers need to add up deductible expenses they paid during the year. These may include expenses such as: • Home mortgage interest • State and local income taxes or sales taxes (but not both) • Real … Continue reading

Posted in Tax Help | Leave a comment

Capital Gains and Losses + What You Need To Know + Former IRS

Posted on by

  Capital Gains and Losses –  Helpful Facts to Know   When a person sells a capital asset, the sale normally results in a capital gain or loss. A capital asset includes inherited property or property someone owns for personal use or as an investment. Here are Facts that taxpayers should know about capital gains and losses: 1. Capital Assets. Capital assets include property such as a home or a car. It also includes investment property, like stocks and bonds. 2. Gains and Losses. A capital gain or loss is the difference between the basis and the amount the seller gets when they sell an asset. The basis is usually what the seller paid for the asset. For details about inherited property, see IRS Publication 544, IRS Publication 550 and IRS Publication 551. 3. Net Investment Income Tax. Taxpayers must include all capital gains in their income. Capital gains may be subject to the Net Investment Income Tax if the taxpayer’s income is above certain amounts. The rate of this tax is 3.8 percent. For details, visit IRS.gov. 4. Deductible … Continue reading

Posted in Tax Help | Leave a comment
Page 5 of 674« First...34567...102030...Last »
  • Contact Us

    We are here to help

    • Should be Empty:

Call We Can Solve Your Tax Problem Immediately!

Member Of NSA, FICPA, NAEA, Better Business Bureau Accredited Business

: Home: The Firm: Tax Solutions: FAQs: Testimonials: Media Center: Press Releases: IRS Forms: Blog: Contact:
: Site Map: Privacy Policy:

: Immediate Representation: Received IRS Letter: Remove IRS Wage Garnishment: Remove IRS Bank Levy: Installment Agreements:
: Release Tax Liens: Unfiled Tax Returns: Negotiate Offer in Compromise: Innocent Spouse: Settle Payroll Liability / 941:
: Apply for Hardship Status: Large Dollar Cases: 165 Theft Loss Tax Deduction: Owe 401k IRS Taxes: Christian Tax Professionals:
: IRS Tax Audit: Florida Sales Tax Problems: Florida Tax Attorney: Income Tax Return Preparation:

 

Disclaimer: No Rendering of Advice - The information contained within this website is provided for informational purposes only and is not intended to
substitute for obtaining accounting, tax, or financial advice from a professional accountant. Presentation of the information via the Internet is not intended
to create, and receipt does not constitute, an accountant-client relationship. Internet subscribers, users and online readers are advised not to act upon this
information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for
the purpose of avoiding penalties under U.S. federal tax law.

Accuracy of Information - While we use reasonable efforts to furnish accurate and up-to-date information, we do not warrant that any information
contained in or made available through this website is accurate, complete, reliable, current or error-free. We assume no liability or responsibility for any
errors or omissions in the content of this website or such other materials or communications. Call Fresh Start Tax at 954-492-0088.

Disclaimer of Warranties and Limitations of Liability - This website is provided on an "as is" and "as available" basis. Use of this website is at your own risk.
We and our suppliers disclaim all warranties. Neither we nor our suppliers shall be liable for any damages of any kind with the use of this website.

Links to Third Party Websites - For your convenience, this website may contain hyperlinks to websites and servers maintained by third parties. We do not
control, evaluate, endorse or guarantee content found in those sites. We do not assume any responsibility or liability for the actions, products, services and
content of these sites or the parties that operate them. Your use of such sites is entirely at your own risk.

Frank Andreacchi, Ed Vecchio and Scott Szaro are no longer with the company and are pictured on our site.

*Mr. Sullivan has been in private practice since 1982 in South Florida which gave roots to Fresh Start Tax LLC.
The firm began as Sullivan & Powell PA and through the years transitioned to its now current form.

© 2017 Fresh Start Tax : All Rights Reserved :