Generation Skipping Tax
The federal government seeks to tax wealth as it is transferred from generation to generation. If you try to pass more than the current generation skipping tax exemption (i.e. skip a generation) to your grandchildren, your estate will be subject to the generation skipping tax (GST.) Generation skipping taxes can be totally avoided with good estate planning.
The IRS can garnish your wages to pay taxes owed. In the context of tax law, “garnishment” means that the IRS placed a levy against your wages and your employer must take out all, but for the sum stated by the IRS, before you are paid. The employer is required by law to send all of your paycheck, other than that small sum, to the IRS to pay your back tax bill.
“Tax arbitration” refers to the process of seeking to amicably settle a tax issue between a taxpayer and a taxing authority, typically the IRS. The tax attorney seeks to maximize taxpayer rights and legal options.
There’s the dreaded word, “audit.” However, a correspondence audit, while still being serious, is less scary than an in-person audit.
A correspondence audit is handled all through the mail. Typically, the tax payer receives a letter indicating that he or she may have forgotten some information or there is a request for documentation of a deduction.
If you don’t respond to a correspondence audit, the IRS can assess and collect all the taxes they determine are owed. It is never in your best interest to ignore the IRS.