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TAXPAYER WAIVED ATTORNEY CLIENT PRIVILEGE AND WORK PRODUCT DOCTRINE PROTECTIONS BY ASSERTING REASONABLE CAUSE/GOOD FAITH PENALTY DEFENSE by Krista Hartwell

In Eaton Corp. v. Comm’r, No. 5576-12, the Tax Court recently granted the government’s Motion to Compel Production of Documents where the taxpayer asserted a reasonable cause/good faith defense, finding that the taxpayer waived the privilege to protect the documents from disclosure. In Eaton, the taxpayer opposed the government’s Motion to Compel Production of Documents, […] Read More…

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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 […] Read More…

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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 […] Read More…

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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 […] Read More…

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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 […] Read More…

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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 […] Read More…

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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 […] Read More…

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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 […] Read More…

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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 […] Read More…

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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. […] Read More…

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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 […] Read More…

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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 […] Read More…

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