Case Shows Tricky Issues with Making Deposits with the IRS to Stop Interest Accrual during Lengthy Tax Disputes


 

Tax disputes with the IRS can last a very long time, even under normal circumstances. The duration of these battles increased because of the Coronavirus. These holdups cause taxpayers ongoing anxiety and uncertainty. They also hurt taxpayers financially, as interest charged by the IRS continues to accumulate while the fighting ensues. Taxpayers aware of this economic reality often seek potential solutions, among them making a “deposit” with the IRS to halt interest. The rules associated with doing so are complex, of course, and they prevent some taxpayers from achieving their goals. This article analyzes key issues related to making “deposits” with the IRS, using a recent Tax Court case, Ahmed v. Commissioner, as a point of reference.

Read the full article here.

About Hale E. Sheppard
HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a Shareholder in the Tax Controversy Section of Chamberlain Hrdlicka and Chair of the International Tax Group.

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