TAXLITIGATOR Blog

Posted by Hochman Salkin Toscher Perez P.C. Posted on Sunday, April 27, 2014

If the resolution of a tax refund claim is contingent on future events and may not be determinable until after the time period for filing a claim for refund expires, practitioners can file a protective claim for refund on behalf of the taxpayer. A protective claim can be either a formal claim or an amended […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Friday, April 25, 2014

If the Internal Revenue Service makes an error in issuing a refund, it can recover the amount incorrectly refunded by filing a suit for erroneous refund. Section 7405[1] provides the Service with the ability to recover erroneous refunds within two years of payment. The two-year period can be extended to five years if any part […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Tuesday, April 15, 2014

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 […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Saturday, April 12, 2014

The California Franchise Tax Board (FTB) just released the list of “hot” audit issues they are encountering in the process of examining returns filed by California taxpayers. The FTB is responsible for administering two of California’s major tax programs: Personal Income Tax (PIT) and the Corporation Tax. The FTB regularly receives and processes more than […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Friday, April 04, 2014

The IRS recently released guidance on the U.S. federal tax implications of transactions in, or transactions that use, virtual currency, such as Bitcoin.[1] For tax purposes, “gross income” is defined as “all income from whatever source derived”, including interest income, gains from dealings in property, and compensation paid for services, whether furnished by the taxpayer […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Tuesday, March 25, 2014

For more than a year, numerous taxpayers with previously undisclosed interests in foreign financial accounts and assets have been seeking participation in the current IRS offshore voluntary disclosure program (the OVDP) which began in 2012, modeled after similar programs in 2009 and 2011. Taxpayers participating in the OVDP generally agree to file amended returns and […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Friday, March 21, 2014

The IRS Large Business & International (LB&I) Division recently issued three recent Directives relating to the issuance and enforcement procedures regarding Information Document Requests (IDRs)(See previous Blog “NEW IRS LB&I Revised IDR Enforcement Process“).[1] LB&I is generally responsible for examinations of wealthy individuals, closely held entities and partnerships, corporations, and S-corporations with assets greater than $10 […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Tuesday, March 18, 2014

Variations of this informal IRS information discovery process are anticipated to spread throughout the remaining examination functions of the IRS. The IRS Large Business & International (LB&I) Division recently issued three recent Directives relating to the issuance and enforcement procedures regarding Information Document Requests (IDRs).[1] LB&I is generally responsible for examinations of wealthy  individuals, s-corporations, partnerships and […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Thursday, March 13, 2014

To download a great article regarding “Procedural Challenges to Interest and Penalties in CDP” prepared by our very close friends at the Law Firm of Agostino & Associates in Hackensack, NJ ( www.agostinolaw.com ), see the Agostino & Associates Newsletter https://origin.library.constantcontact.com/download/get/file/1109538512255-80/A%26A+Newsletter+%28April+2014%29.pdf The article begins “One of the challenges in collection due process  proceedings is convincing the Internal […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, March 12, 2014

A “real estate professional” may treat rental real estate activities as non-passive if the taxpayer “materially participates” in the rental activities. Taxpayers claiming to be a real estate professional should contemporaneously document their efforts with respect to each real estate activity. A taxpayer is generally allowed deductions for certain business and profit-seeking investment expenses[1]. However, […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Monday, March 10, 2014

Beginning with tax year 2013 returns (filed in 2014), taxpayers may elect to use a simplified “safe harbor” option when figuring the deduction for business use of their home. Recognizing that the calculation, allocation, and substantiation of allowable deductions attributable to the use of a portion of the taxpayer’s residence for business purposes can be complex and […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Saturday, March 08, 2014

The Internal Revenue Service recently released a new YouTube video designed to provide useful tax tips to married same-sex couples[1]. The video is less than two minutes long, is available in English, Spanish and American Sign Language and can be accessed via IRS.gov. More than 150 topics covered in various online IRS instructional videos ranging from […] Read More…