Haynes Tax Law

05/08/2026

We have a wonderful client who has fallen on extremely hard times. Lost his business, had to file bankruptcy, and is currently homeless. He has a $20,000 balance owed to the Virginia Department of Taxation. We requested an Offer in Compromise, under which our client would pay the Department everything he owed, but at a monthly rate he can "afford" despite living in his truck. The Department rejected his Offer and 30 days later issued a wage levy to take 25% of his net pay. The Offer in Compromise function has been on a steady decline for several years, but this has reached a new low. If it were not for client confidentiality, I would be calling the local news and the Washington Post.

05/08/2026

The IRS Taxpayer Advocate has taken the position that millions of taxpayers may have protective refund claims available under the Kwong and Abdo decisions. If you incurred IRS penalties and/or interest during the period of the COVID disaster (1/20/2020 to 7/10/2023), please take the appropriate steps by 7/10/2026. Our firm has developed proprietary software to assist in the computation and preparation of such claims. If you think you incurred penalties and interest in amounts significant enough to justify the involvement of legal counsel in preparing those claims, please get in touch with us ASAP.

Millions may qualify for refunds on COVID-era penalties and interest. Learn how to claim yours and why you must act before the July 10, 2026 deadline.

04/20/2026

The recent court decisions, Kwong and Abdo, have generated quite a stir in the tax world. If you incurred IRS penalties and/or interest during the period of the COVID disaster (1/20/2020 to 7/10/2023), you may have a limited time to file a claim to recover them. Many firms are struggling to identify and compute such claims. Our firm developed proprietary software that analyzes IRS account transcript data to identify and help compute potential claims.

For more information on the Kwong and Abdo decisions, please see the wonderful article by Kostelanetz attorney, Frank Agostino linked below.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6410639

04/02/2026

If you have not yet heard about the Kwong and Abdo cases, they are potentially groundbreaking for taxpayers that have incurred penalties and interest between 1/20/2020 and 7/10/2023. The Court of Federal Claims and the Tax Court ruled that the IRS should not have been accruing interest and certain penalties during that period. Many firms are struggling with how to respond, especially since the IRS has said it will not acquiesce in either decision.

Computing possible claims has presented another significant hurdle that has been causing consternation among practitioners. So we wrote our own software to compute them. If you require assistance computing Kwong/Abdo protector refund claims, we may be able to assist.