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Civil Detention for Failure to Pay Taxes

People who owe taxes to the United States often ask whether they might be detained entering or leaving the U. S. In 2008, Charles and Kathleen Barrett filed a fraudulent tax return for the 2007 tax year that resulted in a $217,615 tax refund to which they were not entitled.[1] The Internal Revenue Service discovered […] Read More…

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Badges of Tax Fraud – IRS Goes Undercover in a “Gentleman’s Club”

“If any part of any underpayment of tax required to be shown on a return is due to fraud,” Code section 6663(a) imposes a penalty of 75% of the portion of the underpayment due to fraud. A civil fraud penalty case may be developed based on facts and circumstances of a civil examination or result […] Read More…

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Tax Enforcement Priorities for 2014 and Beyond !!

Contrary to popular belief, the IRS remains active in their core business operations of conducting taxpayer examinations. Returns are identified for examination through an internal IRS process designed to identify issues and returns having significant audit potential. The IRS has been attempting to identify and reduce non-compliance through efficiency, tax form simplification, education, and enforcement. […] Read More…

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“FedEx Express Saver” is NOT Valid for Filing of a Timely Tax Court Petition (or Tax Return)

Following the examination of a taxpayer’s tax return, the Internal Revenue Service (IRS) might issue a Notice of Deficiency setting forth the proposed adjustments to a taxpayers tax return and the resulting liabilities for tax, interest and penalties arising from the underlying examination. Section 6213(a) of the Internal Revenue Code (Code) provides that, without having […] Read More…

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New FBAR Form 114 and Revised IRS Appeals Procedures re FBAR Penalties

On October 28, 2013 the IRS revised the Internal Revenue Manual (IRM) providing guidance and clarification regarding the administrative review of FBAR penalties by the IRS Office of Appeals. See https://www.irs.gov/irm/part8/irm_08-011-006.html The IRM is essentially the operational manual providing guidance and procedures for the various functions carried out by the IRS. The Office of  Appeals […] Read More…

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IRS Warns of Telephone Scam Targeting Taxpayers, Including Recent Immigrants

The Internal Revenue Service warned consumers about a sophisticated phone scam targeting taxpayers, including recent immigrants, throughout the country. SeeIR-2013-84 (Oct. 31, 2013) at irs.gov NOTE: THE IRS WOULD RARELY, IF EVER, FIRST CONTACT A TAXPAYER BY TELEPHONE. THE FIRST CONTACT IS TYPICALLY IN WRITING AND WOULD BE RECEIVED BY U.S. MAIL. THE IRS WILL […] Read More…

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Tax Practice Tool: 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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October 15th Deadline Remains in Effect for Taxpayers Who Requested a Six-month Extension to File Tax Return

The current lapse in federal appropriations does not affect the federal tax law, and all taxpayers should continue to meet their tax obligations as normal. Individuals and businesses should keep filing their tax returns and making deposits with the IRS, as required by law. The Internal Revenue Service reminded taxpayers that the Oct. 15 deadline […] Read More…

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A Temporary and Transitory Visit with California Residency

Residency determinations are relevant for purposes of marital dissolutions, education, probate proceedings, property tax determinations, voter’s registration and . . . income taxes. Individuals often believe they are not California residents for tax purposes simply because they spend significant amounts of time or maintain homes outside California. These individuals are often surprised when facing an […] Read More…

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IRS Operations During The Lapse In Appropriations

IRS Operations During The Lapse In Appropriations Release Date: OCTOBER 01, 2013 Due to the current lapse in appropriations, IRS operations are limited. However, the underlying tax law remains in effect, and all taxpayers should continue to meet their tax obligations as normal. Individuals and businesses should keep filing their tax returns and making deposits […] Read More…

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Zwerner Answers DoJ Efforts to Collect Multiple 50 Percent Civil FBAR Penalties

U.S. taxpayers with previously undisclosed interests in foreign financial accounts and assets continue to analyze and seek advice regarding the most appropriate methods of coming into compliance with their U.S. filing and reporting obligations. Many are pursuing participation in the current IRS offshore voluntary disclosure program (the OVDP which began in 2012), modeled after similar […] Read More…

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You Should Also Worry About Refund Statute of Limitations by Edward M. Robbins, Jr.

  It is critical to understand the intricacies and the interrelationships of the refund and assessment statutes.  The general rule is that the period of limitations for the taxpayer to file a claim for refund and for the IRS to make an assessment is 3 years from the date the tax return is filed.1  The […] Read More…

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