Do Not Wait Until Midnight to File Tax Court Documents... [ read ]
In Nutt v. Comm'r, the Tax Court held that electronic filing deadlines are in the eastern time zone (the time zone where the court is located).
Delaware Must Turnover Communications with Microcaptive Promoters... [ read ]
On April 21st, a Third Circuit Court of Appeals panel ruled that the Delaware Department of Insurance (DDOI) must comply with a 2020 summons from the IRS for all communications with microcaptive insurance companies and their managers. This is another step in the IRS continuing attack on microcaptive insurance companies.
Update on IRS Tax Deposits and a Potential Crack in the Door for Interest Abatement?... [ read ]
I recently wrote a blog about whether partners in BBA partnerships can make deposits under IRC Section 6603. Now there are more updates to share about deposits, although this time unrelated (at least directly) to BBA partnerships.
Tax Court Opinion Reminds Taxpayers to be Careful about Social Media Posts... [ read ]
Most lawyers, especially those who handle some type of litigation, have warned clients about social media posts. Because people like to post pictures of events, extravagant trips and other adventures or discuss what they are doing on social media, it is standard operating procedure for lawyers to search social media of an opposing party for helpful information.
Any Taxpayer Who Paid An International Information Return Penalty Should Consider Requesting a Refund... [ read ]
On April 3rd the Tax Court issued an opinion in Farhy v. Commissioner, holding that the IRS does not have authority to assess certain international information return reporting penalties. As a result, any taxpayer who previously paid an international information return penalty should consider requesting a refund of the penalty.
1014 Basis Adjustments and Irrevocable Grantor Trusts... [ read ]
On April 17, 2023, the IRS released Revenue Ruling 2023-02, concluding that the basis adjustment incident to a person's death, under Section 1014 of the Code, generally does not apply to the assets of a grantor trust unless the assets are included in the grantor's gross taxable estate.
ERC Gets "Listed" - IRS Adds Employee Retention Credits to Dirty Dozen List... [ read ]
Each year, the IRS identifies a dozen transactions -- inclusive of scams, structured transactions, and other transactions that the IRS just doesn't like – and puts them on its so-called "Dirty Dozen" list. Much like the Razzies, it's a not a list you want to make. And this year the IRS has added for the first time Employee Retention Credits ("ERC").
Part Three: Are Tax Returns Given to an IRS Agent Considered Filed?... [ read ]
Last June, I wrote a blog post on a 9th circuit panel opinion in Seaview Trading LLC v. Commissioner, where the panel, in a 2-1 decision, reversed the Tax Court on the meaning of a "filed" return. The panel held that a tax return sent to an IRS agent was considered filed and started the three-year time period of limitations for the IRS to issue a notice of deficiency. This was important because the IRS did not issue a Notice of Deficiency until more than three years after the tax return was provided to the IRS examiner, and therefore was beyond the statute of limitations.
ERC: Is the IRS Trying to Ski Uphill?... [ read ]
One of my favorite things to do is snow ski. I've been doing it for a long time and try to go on a couple of ski trips every year. In fact, I just returned from a trip with a couple of friends including my colleague Alan Davis, who is not only a great estate planning attorney, he is also an excellent skier. But I digress. Uphill skiing was brought to mind when I saw on March 7th the IRS released its third warning in six months regarding fraud and abuse in the Employee Retention Credit (ERC) program.
BREAKING NEWS: Supreme Court Rejects the Government's Aggressive FBAR Argument; FBAR Nonwillful Penalties Apply Per Form.... [ read ]
When a taxpayer omits a foreign account from an FBAR form and that omission is nonwillful, federal law can still impose a steep monetary penalty. Originally that penalty was capped at $10,000, but the law requires that the maximum penalty be inflation-adjusted each year. Currently, the maximum nonwillful penalty is $15,611.
