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IRS Enhances Employment Tax Enforcement Efforts! by MICHEL R. STEIN

The IRS has significantly increased their employment tax enforcement efforts and just released a Fact Sheet (FS-2015-21) explaining how employers can properly determine whether workers should be classified as employees or independent contractors. A wrong decision can result in potentially significant civil penalties or in the event of an intentional mis-classification, those involved might be … Continue reading IRS Enhances Employment Tax Enforcement Efforts! by MICHEL R. STEIN

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Medical Marijuana and the IRS by JONATHAN KALINISKI

Medical marijuana is now legal in 23 states and recreational marijuana is legal in four plus the District of Columbia. It is decriminalized in a few more states and low-THC medical marijuana is legal in still others. Marijuana is only illegal in 10 states. In 1991, 78% of Americans believed marijuana should be illegal. Attitudes … Continue reading Medical Marijuana and the IRS by JONATHAN KALINISKI

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NEW IRS FBAR Reference Guide !

A NEW IRS Reference Guide on the Report of Foreign Bank and Financial Accounts is now available to provide assistance to U.S. persons who have the obligation to file the FBAR and to the tax professionals who prepare and electronically file FBAR reports on behalf of their clients. The Guide also supports IRS examiners in … Continue reading NEW IRS FBAR Reference Guide !

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Court of Appeals for the Federal Circuit Holds that Fraud by a Third Party Does Not Extend the Statute of Limitations by LACEY STRACHAN

In BASR Partnership, William F. Pettinati, Sr., Tax Matters Partner v. United States, No. 2014-5037 (Fed. Cir. July 29, 2015), the Court of Appeals for the Federal Circuit held that the statute of limitations period is suspended under Internal Revenue Code (“IRC”) Section 6501(c)(1) only when the IRS establishes that the taxpayer acted with the … Continue reading Court of Appeals for the Federal Circuit Holds that Fraud by a Third Party Does Not Extend the Statute of Limitations by LACEY STRACHAN

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New Filing Due Dates for FBARs, Partnership and C Corporation Returns!

On July 31, President Obama signed into law H.R. 3236, the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015[1],” which, among other issues, modifies the due dates for several common tax returns, overrules the Supreme Court’s Home Concrete decision, requires that additional information be reported on mortgage information statements, and requires consistent … Continue reading New Filing Due Dates for FBARs, Partnership and C Corporation Returns!

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Determining “Reasonable Cause” for Non-Willful FBAR Violations

For violations involving the non-willful failure to report the existence of a reportable interest in a foreign financial account, the maximum amount of the FBAR penalty that may be assessed under Title 31, Section 5321(a)(5)(B) shall not exceed $10,000, per year, for up to six calendar years. However, no penalty shall be imposed if such … Continue reading Determining “Reasonable Cause” for Non-Willful FBAR Violations

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IRS Advises re Delinquent International Information Return Submission Procedures

Taxpayers who do not need to use the OVDP or the Streamlined Filing Compliance Procedures to file delinquent or amended tax returns to report and pay additional tax, but who: have not filed one or more required international information returns, have reasonable cause for not timely filing the information returns, are not under a civil … Continue reading IRS Advises re Delinquent International Information Return Submission Procedures

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IRS Advises re Delinquent FBAR Submission Procedures

Taxpayers who do not need to use either the OVDP or the Streamlined Filing Compliance Procedures to file delinquent or amended tax returns to report and pay additional tax, but who: have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114, previously Form TD F 90-22.1), are not under … Continue reading IRS Advises re Delinquent FBAR Submission Procedures

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PRACTICAL ADVICE FOR AN IRS EXAMINATION

Maintain timely, clear communications with the examining agent and the client – confirm statements in writing. Know your case and your client – verify information provided by your client. Establish relevant facts, evaluate reasonableness of assumptions or representations, apply relevant legal authorities in arriving at a conclusion supported by the law and the facts. Advise … Continue reading PRACTICAL ADVICE FOR AN IRS EXAMINATION

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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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