TAXLITIGATOR Blog

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, January 11, 2012

Since 1952, practitioners are unaware of any situation where the IRS has referred a timely, truthful and complete voluntary disclosure to the Department of Justice for criminal prosecution. A truthful, timely and complete voluntary disclosure is a factor considered in the IRS decision re a possible criminal prosecution referral to the U.S. Department of Justice. […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, January 11, 2012

U.S. citizens and residents are taxed on their worldwide income, subject to certain very specific exemptions, whether they live inside or outside of the United States. Foreign income must be reported on a U.S. tax return whether or not the person receives a Form W-2, Wage and Tax Statement, a Form 1099 (information return) or […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, January 11, 2012

Improved tax compliance requires taxpayers (and those who ought to be taxpayers) to voluntarily come into compliance. When errors are discovered in a filed return, tax practitioners often pave the road to compliance through assurances that the tax-equivalent of water-boarding is not a typical government response to receipt of an amended return. Some assurances are […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, January 11, 2012

Practitioners should consider submission of a Freedom of Information Act (FOIA)[i] request to the IRS following the unagreed resolution of every tax examination. Although not always a wealth of information, the government response to a FOIA request will provide insight into why the examining agent made certain adjustments and asserted penalties. It will also help […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, January 11, 2012

The IRS Large Business and International Division (LB&I), formerly known as the Large & Mid-Sized Business Division, recently formed a new Industry Group known as the Global High-Wealth Industry Group, commonly referred to as the “Wealth Squad.” The purpose of the Wealth Squad is to bring together an IRS team of specialists to coordinate the […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, January 11, 2012

Requests to interview the taxpayer and return preparer during an otherwise normal IRS examination have become somewhat common. During an examination where the government is in possession of potentially incriminating evidence, such requests are routine. Near the inception of the recent IRS Voluntary Disclosure Program relating to previously undeclared foreign accounts, [i] the IRS examining […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, January 11, 2012

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 Wednesday, January 11, 2012

The IRS recently launched a new program designed to enable many employers to resolve past worker classification issues and achieve certainty by voluntarily reclassifying their workers on a prospective basis. The Voluntary Classification Settlement Program (VCSP)[i] is designed to allow eligible employers to obtain substantial relief from federal payroll taxes they may have owed for […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Wednesday, January 11, 2012

For years, the IRS has been pursuing – with mixed success – the disclosure of information regarding undeclared interests of U.S. taxpayers (or those who ought to be U.S. taxpayers) in foreign financial accounts. On January 9, 2012, the IRS announced yet another offshore voluntary disclosure program (the 2012 OVDI) following on the success of […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Saturday, June 18, 2011

How to Make a Voluntary Disclosure Under the 2011 OVDI  The 2011 Offshore Voluntary Disclosure Initiative (OVDI) is offered to those taxpayers having interests in previously undisclosed interests in offshore financial accounts or assets. Frequently Asked Questions (FAQs) are available at  https://www.irs.gov/businesses/international/article/0,,id=235699,00.html Pre-Clearance: Taxpayers or representatives may fax to the IRS Criminal Investigation Lead Development […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Saturday, June 18, 2011

The Internal Revenue Manual (IRM) contains a Penalty Handbook intended to serve as the foundation for addressing the administration of penalties by the IRS. It is the “one source of authority for the administration of penalties. . .”( Internal Revenue Manual (IRM) 20.1.1.1.1  (02-22-2008). Refer to IRM 9.1.3, Criminal Investigation – Criminal Statutory Provisions and Common […] Read More…

Posted by Hochman Salkin Toscher Perez P.C. Posted on Friday, September 10, 2010

Current IRS Enforcement Priorities. The international arena will continue to test the enforcement resources of the IRS for years to come. There will be ongoing, enhanced coordination with treaty partners and international organizations (six of nine LMSB Tier 1 issues involve international components and LMSB Counsel lawyers have been trained in the fundamentals of international […] Read More…