The Tax Court Hands the IRS Another Win in its Campaign Against Small Captive Insurance Arrangements... [ read ]
The IRS prevailed in another challenge against a small captive insurance arrangement in the case of Reserve Mechanical Corp. v. Comm'r, decided by the Tax Court on June 18, 2018. This is the second case decided in the IRS' favor involving a small captive, the first being Avrahami v. Commissioner decided last year. As the IRS seeks to build on these judicial victories, taxpayers would be well advised to look closely at their captive insurance programs to make sure they are not at risk for suffering the same fate as these taxpayers.
U.S. Supreme Court Overturn's Physical Presence Rule in Holding States Can Require Out-of-State Sellers to Collect Sales Tax... [ read ]
On June 21, 2018, the United States Supreme Court issued its opinion in South Dakota v. Wayfair, Inc., et al. In a 5-4 decision, the Court held a state can require out-of-state sellers with no physical presence in the state to collect sales tax on sales of goods or services delivered into the state.
Obtaining Information from the IRS: Part II... [ read ]
In a prior blog post, we discussed using a Freedom of Information Act request to obtain information from the IRS. In this blog post we will discuss some other sources of information from the IRS.
Obtaining Information from the IRS: The Freedom of Information Act Request... [ read ]
When the IRS is attempting to enforce the tax laws, it will ask for documents and information from a taxpayer. Just as it is important for the IRS to obtain information from the taxpayer, it is equally important for the taxpayer to obtain information from the IRS. This blog post will discuss one alternative for accessing IRS documents and information, the Freedom of Information Act, 5 U.S.C. 552. A Freedom of Information Act request should be considered in any situation where a taxpayer is interacting with the IRS, including an audit of tax returns, collection of delinquent taxes, assessment of penalties, determination of a responsible person for payroll taxes, request for delinquent tax returns or a criminal tax investigation.
Limited Time Offer! Foreign Taxpayers Have Limited Time to Claim Refunds for U.S. Income Tax Paid on the Disposition of Ownership Interests in U.S. Entities Taxed as Partnerships... [ read ]
The recent legislation commonly called the "Tax Cuts and Jobs Act" (the "TCJA") made many significant changes to the U.S. income taxation of international investments.
Texas Comptroller Implements a "Tax Amnesty Program," But Is This the Best Option for All Taxpayers?... [ read ]
Starting today, May 1, 2018 through June 29, 2018, the State of Texas Comptroller's Office will run its "Texas Tax Amnesty Program" which offers relief from tax-related penalties and interest for certain taxpayers. But before participating in that program, taxpayers may want to consider whether the Comptroller's existing voluntary disclosure program provides a better option for them.
Update on IRS Denial or Revocation of Passports... [ read ]
In a prior blog post we discussed IRC Section 7345 which allows the IRS to take actions to either revoke or deny a passport to a taxpayer with a seriously delinquent tax debt. On April 5, IRS Chief Counsel issued Notice CC-2018-005 which provides guidance for Chief Counsel attorneys regarding how to handle a lawsuit brought by a taxpayer in U.S. Tax Court pursuant to Section 7345(e). This notice was issued on the heels of IRS Deputy Chief Counsel Drita Tunuzi stating at a recent ABA Tax Section meeting that the IRS would probably start issuing the notices of passport revocation or denial by the end of February.
Methods of Proof in a Criminal Tax Investigation... [ read ]
In a criminal tax investigation, the IRS generally must prove a taxpayer either underreported his income or overstated his deductions. To do so the IRS uses a number of methods of proof that fall under one of two categories: Direct (Specific Items) Method of Proof or Indirect Methods of Proof.
Identifying a Taxpayer's Trades or Businesses for Purposes of §199A... [ read ]
At the heart of the new §199A deduction is a series of tentative deductions separately determined for each trade or business in which the taxpayer owns an interest based on 20% of qualified business income ("QBI").
What Is A Kovel Accountant?... [ read ]
An attorney who represents a client in a criminal tax investigation will typically retain a forensic accountant to review and analyze the client's financial records and tax returns mirroring the work of the IRS criminal investigators. The accountant is generally referred to as a "Kovel Accountant" and is hired by the attorney, not the client, so that the accountant's work is protected by the attorney-client privilege.
