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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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Civil Tax Penalty Defenses: Reasonable Cause & Reliance

The Internal Revenue Manual (IRM) contains a Penalty Handbook intended to serve as the foundation for addressing the administration of penalties by the IRS. It is the “one source of authority for the administration of penalties. . .”[1] and provides a “fair, consistent, and comprehensive approach to penalty administration.” As such, the IRM is often … Continue reading Civil Tax Penalty Defenses: Reasonable Cause & Reliance

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When Can a Bad Debt Be Deducted for Tax Purposes? by LACEY STRACHAN

The Internal Revenue Code Section 166 allows taxpayers a deduction for debts that have become uncollectible, if certain requirements are met.  These requirements were evaluated by the Tax Court recently in the case Cooper v. Commissioner, T.C. Memo 2015-191 (September 28, 2015), which denied a couple a deduction for a bad debt, on the grounds … Continue reading When Can a Bad Debt Be Deducted for Tax Purposes? by LACEY STRACHAN

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