Reporting Illegal Income to the IRS (It’s All About Choices)

Assume you commit a crime and receive a financial windfall. Then you get caught and have to repay the windfall in the form of restitution. Further assume that you have three options when it comes to reporting and paying tax on the illegal income: (1) you file tax returns to report the income and you……

Divorce Planning for Those With IRS Back Taxes

The IRS often audits tax years where there is some change. This includes mergers, significant asset transfers, deaths or even divorces. The reason why it does this is that these transitions create opportunities for savvy taxpayers or pitfalls for the unwary. These transitions also create motives and introduce new parties to income or assets that……

Saving Taxes: The Cooperative But Innocent Spouse

Innocent spouse relief can provide an excellent remedy to allocate taxes between spouses. While the innocent spouse rules are not all that complex, the application of the rules can be. Part of the complexity comes from the varying motives of the parties. Spouses and former spouses can have a number of different motives for requesting……

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