TAXLITIGATOR Blog

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, April 08, 2015

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Sunday, March 22, 2015

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Saturday, March 07, 2015

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Friday, February 27, 2015

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, February 25, 2015

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Friday, February 20, 2015

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Monday, February 09, 2015

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Saturday, February 07, 2015

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, […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Friday, January 23, 2015

Failing to file returns is not a reasonable response to the inability to pay the tax liability associated with the returns. If in doubt, file the returns and work out a payment arrangement with the IRS. Also, know that the civil “failure to file” penalty accrues at 5.0%/month (up to 25% of the tax deficiency). […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Tuesday, January 20, 2015

I get this question from practitioners and taxpayers several times a year . . . Question: We are under examination for our corporation in an open loss year, and now the IRS wants to go back and look at a closed year where we took part of the loss as a carryback.  How can they […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Thursday, January 15, 2015

In its recent opinion in Mallo v. United States of America,[1] the Tenth Circuit Court of Appeals included broad language indicating that a late filed tax return is not a tax return for purposes of determining a discharge of tax liabilities in bankruptcy. The underlying district court denied a discharge on the grounds that the return […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Saturday, January 03, 2015

On December 12, 2014 the Office of IRS Chief Counsel published Legal Advice Issued by Field Attorneys (LAFA) 20145001F, concluding that the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), as codified in Sections 6221 through 6324, “does not apply to employment tax examinations or worker classification proceedings for entities that are otherwise subject […] Read More…