This is the second of a six part series devoted to utilization of various indirect methods of determining the income of a taxpayer. Financial Status Audit Techniques. There are various audit and investigative techniques available to corroborate or refute a taxpayer’s claim about their business operations or nature of doing business. Audit or investigative techniques for […] Read More…
Read MoreIt seems like discussions of burden of proof and the definition of “willful” in FBAR cases are getting to be as routine as discussions of what it means to be a “responsible person” and to act “willfully” for the trust fund recovery penalty under Internal Revenue Code sec. 6672. And the courts have so far […] Read More…
Read MoreThis is the first of a six part series devoted to sensitive issue examinations of cash intensive businesses. In these situations, examiners frequently utilize various indirect methods of determining the income of a taxpayer. Financial Status Audit Techniques (FSAT). FAST’s include various audit and investigative techniques available to corroborate or refute a taxpayer’s claim about their […] Read More…
Read MoreIn civil tax audits that include potentially sensitive issues, counsel will often engage a team of representatives, including a forensic accountant. Engagement of the accountant by counsel should be carefully designed to extend the attorney-client privilege to communications with the accountant pursuant to the engagement by counsel. The Kovel Accountant. Although Code Section 7525 extends common law protections […] Read More…
Read MoreSection 5321(a)(5)(A) provides that the Secretary of Treasury “may impose a civil money penalty” on anyone who violates the FBAR reporting requirements. Originally, the penalty for willful violation was the greater of the amount in the account (not to exceed $100,000) or $25,000. In 2004, Congress amended the FBAR penalty provision to increase the maximum willful […] Read More…
Read MoreIn the wake of numerous allegations of sexual assault and sexual harassment involving well-known entertainment and media notables such as producer Harvey Weinstein, actors Kevin Spacey and James Franco, NBC News anchor Matt Lauer, CBS News host and journalist Charlie Rose, and Hip Hop mogul and producer Russell Simmons, just to name a few, the […] Read More…
Read MoreBeware: some IRS Agents are modifying Form 872 (Consent to Extend the Time to Assess Tax) to include additional language for international penalties and blown statutes. Although, the forms appears to be the standard preapproved Form 872, reflecting “last revised in July of 2014” or “last revised January 2018”, the altered form contains an additional […] Read More…
Read MoreThe Bipartisan Budget Act of 2018 (“BBA”) President Trump signed into law on February 9, 2018 contains two provisions that clarify and expand whistleblower rights for certain taxpayers. First, Congress broadened the definition of “collected proceeds” for tax whistleblowers under IRC Section 7623(b) to include criminal fines and civil forfeitures. This definition is relevant for […] Read More…
Read MoreThursday, May 10, 2018, New York City 10:45 a.m. – 12:15 p.m. Eastern Time Steven Toscher and Michel Stein will be speaking in New York City at an upcoming Strafford seminar/webinar, New IRS Scrutiny on Cryptocurrency Reporting: Filing Requirements and Exchange Treatment scheduled for Thursday, May 10th, 10:45 a.m. – 12:15 p.m. EST. Tax reform and […] Read More…
Read MoreSteven Toscher and Michel Stein will be speaking at an upcoming Beverly Hills Bar Association presentation, “Cryptocurrency and IRS Tax Enforcement” scheduled for Thursday, May 17th at noon. Presentation from 12:30 p.m. – 1:30 p.m. The presentation will provide tax professionals with a critical first look at new IRS initiatives on taxpayer compliance and reporting […] Read More…
Read MoreThe regulations[1] require that no alien, whether resident or non-resident, can depart from the United States unless he or she first procures a certificate that he or she has complied with the obligations imposed upon him or her by the income tax laws.[2]Failure to do so may result in a termination assessment. Certain types of individuals, […] Read More…
Read MoreGenerally, when a taxpayer files a tax return, the federal tax laws afford the Internal Revenue Service (“IRS”) with a limit of only three-years within which it must act to examine and assess additional taxes and penalties on any unreported income. While the Internal Revenue Code provides various exceptions to this three-year limit[i], on January 2, 2018, the Tax […] Read More…
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