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NEW IRS LB&I Revised IDR Enforcement Process

Variations of this informal IRS information discovery process are anticipated to spread throughout the remaining examination functions of the IRS. The IRS Large Business & International (LB&I) Division recently issued three recent Directives relating to the issuance and enforcement procedures regarding Information Document Requests (IDRs).[1] LB&I is generally responsible for examinations of wealthy  individuals, s-corporations, partnerships and … Continue reading NEW IRS LB&I Revised IDR Enforcement Process

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AGOSTINO & ASSOCIATES – Procedural Challenges to Interest and Penalties in CDP

To download a great article regarding “Procedural Challenges to Interest and Penalties in CDP” prepared by our very close friends at the Law Firm of Agostino & Associates in Hackensack, NJ ( www.agostinolaw.com ), see the Agostino & Associates Newsletter http://origin.library.constantcontact.com/download/get/file/1109538512255-80/A%26A+Newsletter+%28April+2014%29.pdf The article begins “One of the challenges in collection due process  proceedings is convincing the Internal … Continue reading AGOSTINO & ASSOCIATES – Procedural Challenges to Interest and Penalties in CDP

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“Ballpark Guesstimate” Insufficient to Support “Real Estate Professional” Status – Accuracy-Related Penalty Applied

A “real estate professional” may treat rental real estate activities as non-passive if the taxpayer “materially participates” in the rental activities. Taxpayers claiming to be a real estate professional should contemporaneously document their efforts with respect to each real estate activity. A taxpayer is generally allowed deductions for certain business and profit-seeking investment expenses[1]. However, … Continue reading “Ballpark Guesstimate” Insufficient to Support “Real Estate Professional” Status – Accuracy-Related Penalty Applied

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Simplified Option for Home Office Deduction Now Available !

Beginning with tax year 2013 returns (filed in 2014), taxpayers may elect to use a simplified “safe harbor” option when figuring the deduction for business use of their home. Recognizing that the calculation, allocation, and substantiation of allowable deductions attributable to the use of a portion of the taxpayer’s residence for business purposes can be complex and … Continue reading Simplified Option for Home Office Deduction Now Available !

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IRS Releases YouTube Video and Updates FAQs re Tax Information for Same-Sex Couples

The Internal Revenue Service recently released a new YouTube video designed to provide useful tax tips to married same-sex couples[1]. The video is less than two minutes long, is available in English, Spanish and American Sign Language and can be accessed via IRS.gov. More than 150 topics covered in various online IRS instructional videos ranging from … Continue reading IRS Releases YouTube Video and Updates FAQs re Tax Information for Same-Sex Couples

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IRS-Criminal Investigation 2014 Investigative Priorities

The Internal Revenue Service recently announced the release of its IRS Criminal Investigation (CI) Annual Report for fiscal year 2013[1], identifying their investigative priorities for 2014 and reflecting significant increases in criminal tax enforcement actions around the country.[2] CI investigates potential criminal violations of the Internal Revenue Code (Code) and related financial crimes. Together with local … Continue reading IRS-Criminal Investigation 2014 Investigative Priorities

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IRS Identifies the “Dirty Dozen” Tax Scams for 2014

The Internal Revenue Service recently issued its annual “Dirty Dozen” list of tax scams (IR-2014-16, Feb. 19, 2014), compiled each year identifying a variety of common scams taxpayers can encounter at any point during the year. Seehttp://www.irs.gov/uac/Newsroom/IRS-Releases-the-“Dirty-Dozen”-Tax-Scams-for-2014;-Identity-Theft,-Phone-Scams-Lead-List  Many of these schemes peak during filing season as people prepare their tax returns. “Taxpayers should be on … Continue reading IRS Identifies the “Dirty Dozen” Tax Scams for 2014

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Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions in Hidden Offshore Accounts

The Permanent Subcommittee on Investigations (PSI) of the United States Senate will hold a hearing, “Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions in Hidden Offshore Accounts,” on Wednesday, February 26, 2014, beginning at 9:30 a.m., in Room G-50 of the Dirksen Senate Office Building. See http://www.hsgac.senate.gov/subcommittees/investigations/hearings/offshore-tax-evasion-the-effort-to-collect-unpaid-taxes-on-billions-in-hidden-offshore-accounts The PSI is the chief … Continue reading Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions in Hidden Offshore Accounts

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Criminal Tax Prosecutions Surge Under President Obama

The number of criminal tax prosecution referrals each year by the Internal Revenue Service (IRS) to the U.S. Department of Justice (DoJ) has risen by nearly a quarter — 23.4 percent — during the administration of President Obama (FY 2009-2013) when compared with the George W. Bush years (2001-2008) according to a February 4, 2014 … Continue reading Criminal Tax Prosecutions Surge Under President Obama

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Civil Detention for Failure to Pay Taxes

People who owe taxes to the United States often ask whether they might be detained entering or leaving the U. S. In 2008, Charles and Kathleen Barrett filed a fraudulent tax return for the 2007 tax year that resulted in a $217,615 tax refund to which they were not entitled.[1] The Internal Revenue Service discovered … Continue reading Civil Detention for Failure to Pay Taxes

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Badges of Tax Fraud – IRS Goes Undercover in a “Gentleman’s Club”

“If any part of any underpayment of tax required to be shown on a return is due to fraud,” Code section 6663(a) imposes a penalty of 75% of the portion of the underpayment due to fraud. A civil fraud penalty case may be developed based on facts and circumstances of a civil examination or result … Continue reading Badges of Tax Fraud – IRS Goes Undercover in a “Gentleman’s Club”

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Tax Enforcement Priorities for 2014 and Beyond !!

Contrary to popular belief, the IRS remains active in their core business operations of conducting taxpayer examinations. Returns are identified for examination through an internal IRS process designed to identify issues and returns having significant audit potential. The IRS has been attempting to identify and reduce non-compliance through efficiency, tax form simplification, education, and enforcement. … Continue reading Tax Enforcement Priorities for 2014 and Beyond !!

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