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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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Taxpayer Proves Wrong the IRS’ Reconstruction of his Tip Income by Lacey Strachan

In a Tax Court Memorandum Opinion released February 26, 2015, the Tax Court held that a taxpayer had fully reported his tip income for tax years 2009 – 2011, rejecting the Service’s determination that the taxpayer had underreported his tip income based on its reconstruction of the taxpayer’s tip income.[i]  During the tax years at … Continue reading Taxpayer Proves Wrong the IRS’ Reconstruction of his Tip Income by Lacey Strachan

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Tax Return Should Not Represent an Offer to Negotiate Deductions with the Government

Deductions are a matter of legislative grace, and taxpayers bear the burden of proving entitlement to any claimed deduction.[i] A taxpayer must identify each deduction available, show that he or she has met all requirements therefor, and keep books or records that substantiate the expenses underlying the deduction.[ii] The mere fact that a taxpayer claims … Continue reading Tax Return Should Not Represent an Offer to Negotiate Deductions with the Government

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President Obama Announces Intent to Nominate Cono R. Namorato, for Assistant Attorney General for the Tax Division, Department of Justice

Cono Namorato is an extraordinary individual with an outstanding character and the highest integrity. He is amazingly well qualified to lead the Tax Division with his deep knowledge and understanding of the Internal Revenue Code, the Treasury Regulations and relevant case authorities involved in a wide range of both civil and criminal tax related issues. … Continue reading President Obama Announces Intent to Nominate Cono R. Namorato, for Assistant Attorney General for the Tax Division, Department of Justice

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“ANSWERING YOUR CIVIL AND CRIMINAL OFFSHORE DISCLOSURE QUESTIONS”

ABA Webinar “ANSWERING YOUR CIVIL AND CRIMINAL OFFSHORE DISCLOSURE QUESTIONS” – Tuesday, February 24, 2015 at 12:00 to 1:30PM ET.   Following on the success of the recent ABA National Institutes of Criminal Tax Fraud and Tax Controversy, this program will provide a brief overview of offshore tax enforcement, followed by an opportunity to present questions directly … Continue reading “ANSWERING YOUR CIVIL AND CRIMINAL OFFSHORE DISCLOSURE QUESTIONS”

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ICIJ Reveals Swiss HSBC Data

THE INTERNATIONAL CONSORTIUM OF INVESTIGATIVE JOURNALISTS(ICIJ) have released information regarding “a trove of almost 60,000 leaked files that provide details on over 100,000 HSBC clients and their bank accounts.” See  https://www.icij.org/project/swiss-leaks/explore-swiss-leaks-data ICIJ DISCLAIMER – A Disclaimer on the ICIJ site states “There are legitimate uses for Swiss bank accounts and trusts. We do not intend … Continue reading ICIJ Reveals Swiss HSBC Data

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California’s New Form 3840 for Reporting Like-Kind Exchanges by Lacey Strachan

Section 1031 like-kind exchanges have been one of the California Franchise Tax Board’s (FTB) top audit issues in recent years. [i]  California’s Form 3840, which is new for the 2014 tax year, is one of the latest developments in the FTB’s focus on scrutinizing like-kind exchanges. On June 27, 2013, Assembly Bill 92 was enacted, … Continue reading California’s New Form 3840 for Reporting Like-Kind Exchanges by Lacey Strachan

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