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What expenses will the IRS allow when determining ability to pay delinquent tax debts? The IRS has established expense standards for several categories of expenses. In order to claim an expense, taxpayers must show the expense meets the “necessary expense test.” The necessary expense test is defined as expenses that are necessary to provide for a taxpayer’s (and his or…

This comment is not legal advice nor is it the recommendation of Mopsick Tax Law. There is a pink elephant in the room and it is time we talked about it. Everyone knows that no one in Washington was thinking about Americans abroad when FATCA and the Bank Secrecy Act...

I am pleased to announce that I have been invited to serve as a member of American Citizens Abroad (ACA) Professional Tax Advisory Panel (PTAC)! "American Citizens Abroad (ACA), the voice of Americans overseas, is a non-profit, non-partisan, all-volunteer organization...

ACHANCE FOR THE IRS TO “DO THE RIGHT THING” Back in the day, when I held the privileged position of IRS District Counsel in Sacramento, California, my managers and the attorneys we supervised kept a running report card on how well we resolved the various problems...

Finally, the main stream media is waking up to the coming train wreck of FATCA’s impact on Americans living abroad. On April 15, 2012, in the New York Times and on the 16th in the International Herald Tribune, reporter David Jolly published articles which bring to the...

Last week, the IRS announced a new compliance initiative aimed at the estimated seven million Americans who reside outside the United States. The IRS has launched a new International Compliance Project under which the IRS will match up forms 1099-R with “a selection...

A few weeks ago I wrote about my trip to Panama and particularly my interaction with some of the American expat community in Boquete and in Panama City. Another part of my trip was a number of meetings with the compliance and executive officers of some of Panama’s...

So, you want to settle your tax debts with the IRS? Does the IRS really settle tax debts? Yes, they do. Tax debts can be settled through the IRS’s offer in compromise program. There are three types of offers in compromise, but the most common is “doubt as to collectibility.” This means the IRS has doubt that it will be…

Taxpayers that owe the IRS back taxes are often in a difficult financial position. The IRS offers a number of tax relief options to taxpayers. One option available to those that can demonstrate a financial hardship is Currently Not Collectible status. If the IRS deems a taxpayer uncollectible due to a financial hardship, the IRS can place the taxpayer in…

Taxes are one of those pesky things in life that have to be addressed head-on. Delaying the payment of taxes by not making the appropriate deposits, under-withholding, or failing to file tax returns on time is a recipe for disaster. Tax debts that are too big to pay can quickly accrue. Interest and penalties are assessed for failing to pay…