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NEW IRS Guidance Limits FBAR Penalties!

U.S. persons having a financial interest in or signature authority over one or more foreign financial accounts – including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account – having an aggregate value exceeding $10,000 at any time during 2014 is generally required by the Bank Secrecy Act to … Continue reading NEW IRS Guidance Limits FBAR Penalties!

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Reminder FBAR Electronic Filing Due by June 30, 2015

U.S. persons having a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account may be required by the Bank Secrecy Act to report their interest in the account to the IRS by electronically filing by June 30, 2015, … Continue reading Reminder FBAR Electronic Filing Due by June 30, 2015

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FILING AN INFORMAL CLAIM FOR A TAX REFUND by EDWARD M. ROBBINS, Jr.

In order to file a proper claim for refund, the practitioner should use Form 1040X (individual return), Form 1120X (corporate income return), or Form 843 (refund of taxes other than income taxes), or whatever form the Service has designated. Although informal claims for a refund have been held to be sufficient, informal claims for refund … Continue reading FILING AN INFORMAL CLAIM FOR A TAX REFUND by EDWARD M. ROBBINS, Jr.

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Tax Court Finds No Abuse of Discretion in an Appeals Officer’s Denial of Not Currently Collectible Status by Lacey Strachan

In Riggs v. Commissioner,[i] issued May 26, 2015, the Tax Court held that an Appeals officer did not abuse its discretion in denying the petitioner currently not collectible (CNC) status, for the amount the petitioner owed under IRC section 6672, the trust fund recovery penalty.  The Petitioner had timely requested a collection due process hearing … Continue reading Tax Court Finds No Abuse of Discretion in an Appeals Officer’s Denial of Not Currently Collectible Status by Lacey Strachan

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DISTRICT COURT FINDS MEMOS PROTECTED BY ATTORNEY CLIENT PRIVILEGE AND WORK PRODUCT DOCTRINE by Krista Hartwell

We recently posted an article regarding the Tax Court’s recent decision in Eaton Corp v. Comm’r, No. 5576-12, where the Tax Court found the taxpayer waived attorney client privilege and work product doctrine protections when it asserted a reasonable cause/good faith penalty defense. More recently, in United States v. Sanmina Corp., No. 5:15-cv-00092 (2015 U.S. … Continue reading DISTRICT COURT FINDS MEMOS PROTECTED BY ATTORNEY CLIENT PRIVILEGE AND WORK PRODUCT DOCTRINE by Krista Hartwell

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TAXPAYER WAIVED ATTORNEY CLIENT PRIVILEGE AND WORK PRODUCT DOCTRINE PROTECTIONS BY ASSERTING REASONABLE CAUSE/GOOD FAITH PENALTY DEFENSE by Krista Hartwell

In Eaton Corp. v. Comm’r, No. 5576-12, the Tax Court recently granted the government’s Motion to Compel Production of Documents where the taxpayer asserted a reasonable cause/good faith defense, finding that the taxpayer waived the privilege to protect the documents from disclosure. In Eaton, the taxpayer opposed the government’s Motion to Compel Production of Documents, … Continue reading TAXPAYER WAIVED ATTORNEY CLIENT PRIVILEGE AND WORK PRODUCT DOCTRINE PROTECTIONS BY ASSERTING REASONABLE CAUSE/GOOD FAITH PENALTY DEFENSE by Krista Hartwell

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IRS Audit Techniques Guides

Historically, Internal Revenue Service examiners were assigned to audit taxpayers in many different industries. On one day, an examiner audited a grocery store and on the following day the examiner may have audited a computer retailer or a medical doctor. As a result, experience gained in one audit did not significantly enhance the examiner’s experience … Continue reading IRS Audit Techniques Guides

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IRS Cash Intensive Business Audit Technique Guide (ATG) by Cory Stigile

IRS Audit or investigative techniques for a cash intensive business might include an examiner determining that a large understatement of income could exist based on return information and other sources of information. A cash intensive business is one that receives a significant amount of receipts in cash. This can be a business such as a … Continue reading IRS Cash Intensive Business Audit Technique Guide (ATG) by Cory Stigile

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Clinton Foundation to File Amended Returns, Should You?

The Clinton Foundation recently announced that it will be amending various previously filed annual information returns to, at least in part, reflect donations on a specific, rather than consolidated, basis.[1] IRS Form 990, “Return of Organization Exempt From Income Tax,” is an annual information return filed by organizations exempt from income tax under Internal Revenue … Continue reading Clinton Foundation to File Amended Returns, Should You?

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TAX COURT TO DECIDE AT TRIAL WHETHER IRS MAILED DEFICIENCY NOTICES by Krista Hartwell

In Knudsen v. Commissioner, T.C. Memo 2015-69, the Tax Curt recently denied the IRS’s motion for summary judgment where the taxpayer challenged a proposed collection levy because the IRS failed to establish that it actually mailed the required notices of deficiency to the taxpayer.  The Tax Court concluded a trial is necessary to determine whether … Continue reading TAX COURT TO DECIDE AT TRIAL WHETHER IRS MAILED DEFICIENCY NOTICES by Krista Hartwell

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Tax Court has Discretion to Allow Withdrawal of Petition, by Jonathan Kalinski

In a recent case of first impression, the U.S. Tax Court held that in “stand alone” innocent spouse cases under I.R.C. section 6015(e)(1) the Court has discretion to allow the petitioner to withdraw the petition without entering a decision because petition does not invoke the Court’s deficiency jurisdiction.[1]  The taxpayer filed a Form 8857, Request … Continue reading Tax Court has Discretion to Allow Withdrawal of Petition, by Jonathan Kalinski

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Does Filing a False Return Start the Six Year Clock? By Krista Hartwell

Does filing a false return start the six year clock or does it start at the time of the taxpayer’s last act of tax evasion? A taxpayer’s last act of tax evasion may occur many years after the tax return was (or should have been) filed. Some courts have concluded that the six year statute … Continue reading Does Filing a False Return Start the Six Year Clock? By Krista Hartwell

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