Our Blog

Section 481: What Is a Change in Accounting Method and What Is Not? by LACEY STRACHAN

Section 481 provides that where a taxpayer’s taxable income for a tax year is computed under a method of accounting different from that previously used, an adjustment will be made to prevent amounts from being duplicated or omitted solely by reason of the change in accounting method.[i]  Section 481 applies regardless of whether the change … Continue reading Section 481: What Is a Change in Accounting Method and What Is Not? by LACEY STRACHAN

Read More

If you don’t pay your taxes, you not be able to travel by ROBERT S. HORWITZ

Thinking of vacationing outside the United States when you owe the IRS money?  Think again. Congress recently enacted Fixing America’s Surface Transportation (“FAST”) Act, which President Obama signed into law on December 4.  Section 32101 of the Act (which is almost 500 pages in length) adds sec. 7345 to the Internal Revenue Code.  It is … Continue reading If you don’t pay your taxes, you not be able to travel by ROBERT S. HORWITZ

Read More

National Institutes on Criminal Tax Fraud and Tax Controversy, December 9-11

ABA 2015 National Institute on Criminal Tax Fraud and Tax Controversy, December 9-11, Encore Hotel, Las Vegas. We are closing in on a full house for the ABA 2015 National Institute on Criminal Tax Fraud and Tax Controversy, December 9-11, Encore Hotel, Las Vegas, Nevada.  If you are interested in attending and have not yet … Continue reading National Institutes on Criminal Tax Fraud and Tax Controversy, December 9-11

Read More

MICROSOFT DECISION EMPHASIZES THE HEAVY BURDEN A TAXPAYER MUST BEAR TO DEFEAT ENFORCEMENT OF A SUMMONS by ROBERT S. HORWITZ

On November 23, 2015, the District Court for the Western District of Washington issued its decision in one of the most closely watched summons enforcement cases in recent years: United States v. Microsoft Corp., Case No. C15-00102-RSM.  The case drew attention not only because of the taxpayer involved, Microsoft Corporation, but also because Microsoft challenged … Continue reading MICROSOFT DECISION EMPHASIZES THE HEAVY BURDEN A TAXPAYER MUST BEAR TO DEFEAT ENFORCEMENT OF A SUMMONS by ROBERT S. HORWITZ

Read More

Disputing the Underlying Liability in CDP Following a Substitute For Return (SFR) by CORY STIGILE

In Dennis M. Powers v. Comm’r, TC Memo 2015-210, the Tax Court Granted the government’s motion for summary judgement against a pro se Taxpayer who petitioned the Tax Court to dispute the underlying liability set forth on a substitute return prepared by the IRS.  While the Taxpayer left the IRS and subsequent Court little choice … Continue reading Disputing the Underlying Liability in CDP Following a Substitute For Return (SFR) by CORY STIGILE

Read More

DOJ PUTS EMPLOYMENT WITHHOLDING TAX VIOLATIONS IN ITS CROSSHAIRS by Robert S. Horwitz

The failure of businesses to collect and pay to the IRS employee withholding taxes (income, and the employee portion of social security and Medicare) has been a major problem since the institution of withholding taxes. The tax does not get paid to the IRS.  At the same time, the employee is credited with having paid … Continue reading DOJ PUTS EMPLOYMENT WITHHOLDING TAX VIOLATIONS IN ITS CROSSHAIRS by Robert S. Horwitz

Read More

WITHHELD TAXES AND THE TRUST FUND RECOVERY PENALTY

A Federal District Court in Idaho recently held that the sole shareholder and president of a company that sold tractors was liable for federal income and social security taxes withheld from the wages of the employees finding that he was a responsible person despite having delegated his authority to a manager who embezzled funds and … Continue reading WITHHELD TAXES AND THE TRUST FUND RECOVERY PENALTY

Read More

Forfeiture of Currency for Failure to File Form 8300 By Krista Hartwell

This post addresses the circumstances under which the government may forfeit currency for failure to file IRS Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Any person engaged in a trade or business who receives $10,000 or more in cash from a transaction (in the course of their trade … Continue reading Forfeiture of Currency for Failure to File Form 8300 By Krista Hartwell

Read More

TEFRA Update-Just When You Thought TEFRA Couldn’t Get Any More Complicated by Edward M. Robbins, Jr.

[On November 2, 2015, President Obama signed into law H.R. 1314, the Bipartisan Budget Act of 2015 (the “Budget Act”). This document outlines the key provisions (new procedural rules for partnership audits and adjustments, and amendments to sections 704(e) and 761(b)) relating to the determination of who is a partner in a partnership relating to … Continue reading TEFRA Update-Just When You Thought TEFRA Couldn’t Get Any More Complicated by Edward M. Robbins, Jr.

Read More

Statute of Limitations on Collection of an Estate Tax Liability when a Section 6166 Election Is in Place by LACEY STRACHAN

Generally, payment of estate tax is due nine months after the date of death of a decedent.[i]  However, there is an election that can be made under certain circumstances to defer payment of all or a portion of estate tax due, where part or all of the estate tax is attributable to interests in certain … Continue reading Statute of Limitations on Collection of an Estate Tax Liability when a Section 6166 Election Is in Place by LACEY STRACHAN

Read More

Who Qualifies as a Real Estate Professional for Tax Purposes? by CORY STIGILE

In Brown v. Commissioner, T.C. Summary Op. 2015-62 (October 15, 2015), the Tax Court held that the taxpayers’ losses from rental activities were non-passive. The case illustrates how the Tax Court will review the real estate professional test as well as the separate material participation tests to determine if rental activities are non-passive. The taxpayer … Continue reading Who Qualifies as a Real Estate Professional for Tax Purposes? by CORY STIGILE

Read More

Goodby Home Concrete: Overstated Basis is an Omission of Income By ROBERT S. HORWITZ

On July 31, 2015, Congress enacted H.R. 3236, Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. The bill was introduced in the House and the Senate on July 28, sponsored by Representative Shuster of Pennsylvania, with Representatives Ryan of Wisconsin and Miller of Florida as co-sponsors. It was passed without any amendments. … Continue reading Goodby Home Concrete: Overstated Basis is an Omission of Income By ROBERT S. HORWITZ

Read More