TAXLITIGATOR Blog

Posted by Hochman Salkin Toscher Perez P.C. Posted on Monday, February 03, 2014

“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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Friday, January 17, 2014

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Tuesday, November 26, 2013

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Sunday, November 10, 2013

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Friday, November 01, 2013

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Saturday, October 12, 2013

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Tuesday, October 08, 2013

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Sunday, October 06, 2013

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, October 02, 2013

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Thursday, September 26, 2013

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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, September 11, 2013

  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…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Saturday, August 31, 2013

Most tax practitioners understand the basic assessment statute of limitations rules in the Code: three years after the return is filed, six years after the return is filed for 25% omission of income, or forever in the case of fraud and/or failure to file.[i]  Practitioners may be less familiar with the raft of additional special […] Read More…