TAXLITIGATOR Blog

Posted by Hochman Salkin Toscher Perez P.C. Posted on Saturday, March 10, 2012

Although often struggling with deadlines and sometimes recalcitrant clients, a tax practice should be an enjoyable, rewarding experience. Tax practitioners provide their clients with an objective, knowledgeable review of financial information that is ultimately presented to the government in the form of a tax or information return. If the client has provided timely, complete responses […] Read More…

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

Taxpayers who have failed to report earnings on foreign bank accounts have until August 31, 2011 to do so without imposition of criminal penalties and with reduced civil penalties.  The reduced penalties apply to taxpayers who comply with the Internal Revenue Service’s Offshore Voluntary Disclosure Initiative (2011 OVDI), but only if the taxpayers do so […] Read More…

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

The IRS continues to enhance its ongoing enforcement efforts and expedited reporting between the IRS and the state taxing agencies will have a significant future impact on taxpayers who, for whatever reason, have failed to timely file their tax returns. The government can better identify taxpayers who have underreported or not reported income or have otherwise […] Read More…

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

Questions regarding the depth of an offshore account examination for those who, for whatever reason, did not participate in the 2009 OVDP or the 2011/2012 OVDI are now beginning to be answered in various IRS examinations around the country. A voluntary disclosure would not likely be considered timely following receipt of a notice of an […] Read More…

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…