Using a Qualified Amended Return to Avoid the Accuracy-Related Penalty... [ read ]
When a taxpayer or tax professional discovers an error on a previously filed tax return, the taxpayer usually asks whether and how the error should be corrected. While there is nothing in the Internal Revenue Code or Regulations requiring a taxpayer to amend a tax return, CPAs and other tax professionals have a duty under Circular 230 and ethical rules to advise a taxpayer that an amended tax return should be filed and that failure to do so could result in imposition of penalties. If a taxpayer chooses not to file an amended return, he or she could be subject to an accuracy-related penalty pursuant to IRC Section 6662.
Are Tax Returns Given to an IRS Agent Considered Filed?... [ read ]
In the typical IRS delinquent tax return examination, the IRS agent will ask that the original delinquent returns be delivered to him or her for filing. Because providing tax returns and other information, such as refund claims, is not considered filing, I will usually file the returns with the IRS Service Center, and provide a copy to the agent with proof of filing. By doing so, I know that a tax return or refund claim has been properly and promptly.
Tax Sale of Real Property: The Rights and Interests of the Taxpayer and the Purchaser... [ read ]
If you listen to the radio or watch late night TV, you know that the IRS has considerable powers when it comes to collecting unpaid taxes, penalties and interest. Included in these powers is the right to seize and sell real property in which a delinquent taxpayer has an interest, although there are some limits on what real property can be seized and sold by the IRS.
Section 9100 Relief: A Second Bite at the Apple... [ read ]
In my career, I have received calls from panicked tax professionals who have discovered that they have inadvertently missed a tax election and don't know what to do. When I receive such a call, I tell the caller two things. First, I tell the tax professional to contact his or her malpractice carrier. Second, I tell the caller that there may be a solution, Reg. Sections 301.9100-1 thru 3, which contain rules for allowing for extensions of time for late tax elections. Depending on the circumstances, Section 9100 relief may be automatic or non-automatic.
Appeals Court Upholds Half Percent Texas Franchise Tax Rate For Rent To Own Business... [ read ]
In a recent decision, the Third Court of Appeals in Texas held that Rent-A-Center, Inc. was entitled to use the .5% tax rate for Texas franchise tax purposes which is generally available to retailers and wholesalers. Rent-A-Center, Inc. v. Hegar, 2015 Tex. App. LEXIS 5865 (Tex. App. – Austin, no pet., June 11, 2015).
It's About Time - Slowly But Surely the IRS Finally Agrees to Let Employers Off the Hook When They Use a Professional Employer Organization (PEO)... [ read ]
According to the National Association of Professional Employer Organizations, approximately 2 to 3 million people are currently covered under a PEO arrangement. After TIPA is fully implemented, with many provisions effective January 1, 2016, expect these numbers to increase in the coming years.
Tax Amnesty Programs... [ read ]
Several states have amnesty programs that begin this month and have limited duration. Taxpayers who may be interested should seek legal counsel before approaching any state about past due taxes. Read the full article to see what states have amnesty programs.
TIGTA Report Weighs in on Penalty Abatements... [ read ]
On July 30, 2015, the Treasury Inspector General for Tax Administration ("TIGTA") released a report evaluating whether penalties assessed by the IRS against taxpayers are being abated in accordance with IRS Appeals criteria. The report underscores the need for skilled advocacy when it comes to penalty abatement requests and the importance of ensuring that taxpayers' requests for penalty abatements both comply with the governing standards of penalty relief and contain sufficient information to justify the relief requested.
ACA Section 4980D Penalties Apply to Large and Small Employers... [ read ]
Internal Revenue Code section 4980D imposes a $100.00 per day per employee excise tax on any employer that fails to meet certain group health plan requirements. In testimony before the Senate Finance Committee, a policy analyst with the National Federation of Independent Business testified that 18 percent of small businesses are engaged in practices that may subject the employers to the $100.00 per day per employee penalty.
Eleventh Circuit Holds "Cash Hoard" Exceeding $10k Currently is Not Required for a Structuring Indictment... [ read ]
In U.S. v. Sperrazza, the U.S. Eleventh Circuit recently affirmed the conviction of a Georgia physician who was convicted of three counts of tax evasion, in violation of 26 U.S.C. § 7201, and two counts of structuring currency transactions, in violation of 31 U.S.C. § 5324(a)(3). U.S. v. Sperrazza, No. 14-11972 (11th Cir. Aug. 17, 2015).
