Our Blog

First Circuit to IRS: Collect Taxes Post-Bankruptcy Discharge at Your Peril by Robert S. Horwitz

In 1998 Congress added §7433(e) to the Code.  It provides that a taxpayer can sue the US for damages as a result of collection action that “willfully violates” either the bankruptcy stay imposed by 11 USC §362 or a bankruptcy discharge order under 11 USC §524.  The statute provides: (e)Actions for violations of certain bankruptcy […] Read More…

Read More

Despite the New Partnership Audit Rules, TEFRA Still Matters By Robert S. Horwitz

Despite the fact that the new partnership audit rules are effective for tax years that began after December 31, 2017, TEFRA will remain relevant for a number of years, as can be seen by several recent decisions. Foster v United States, Dkt. 1:06-cv-00818 (W.D. TX June 19, 2018), involved a TEFRA partnership’s 1984 tax year.  […] Read More…

Read More

STEVEN TOSCHER to receive the 2018 Richard Carpenter Excellence in Tax Award from the Third Annual USD School of Law – RJS LAW Tax Controversy Institute

Hochman Salkin Rettig Toscher & Perez, P.C. is pleased to announce that STEVEN TOSCHER is to receive the 2018 Richard Carpenter Excellence in Tax Award from the Third Annual USD School of Law – RJS LAW Tax Controversy Institute We are honored to announce Steve Toscher as the recipient of the 2018 Richard Carpenter Excellence […] Read More…

Read More

An Interesting Trust Fund Recovery Penalty Case – and Some Further Musings on “Willful” By Robert S. Horwitz

The Fifth Circuit recently reversed summary judgment in favor of the Government in a $4.3 million trust fund recovery penalty (“TFRP”) case. McClendon v. United States, Dkt. No. 17-20174 (June 14, 2018), at  http://www.ca5.uscourts.gov/opinions/pub/17/17-20174-CV0.pdf  The TFRP, Internal Revenue Code §6672, allows the IRS to assess against any person responsible any withholding tax that was not collected, accounted […] Read More…

Read More

Supreme Court Reinforces that District Courts Must Accurately Calculate Federal Sentencing Guidelines, Even If Imposed Sentence is Within the Accurate Guideline Range by Evan J. Davis

Two weeks ago, the Supreme Court reinforced that a felon’s liberty interest outweighed inconveniencing the district court when the Court held that appellate courts must send cases back to the district court where the district court made a mistake in calculating the federal sentencing guidelines.  Rosales-Mireles v. United States, 585 U.S. ___ (2018), available at https://supreme.justia.com/cases/federal/us/585/16-9493/. In […] Read More…

Read More

Financial Status Audit Techniques: Part Two – The Source and Application of Funds Method by Cory Stigile

This is the second of a six part series devoted to utilization of various indirect methods of determining the income of a taxpayer. Financial Status Audit Techniques. There are various audit and investigative techniques available to corroborate or refute a taxpayer’s claim about their business operations or nature of doing business. Audit or investigative techniques for […] Read More…

Read More

Another FBAR Willfulness Decision Favors the Government-So What Are the Courts Missing? by Robert S. Horwitz

It seems like discussions of burden of proof and the definition of “willful” in FBAR cases are getting to be as routine as discussions of what it means to be a “responsible person” and to act “willfully” for the trust fund recovery penalty under Internal Revenue Code sec. 6672.  And the courts have so far […] Read More…

Read More

Financial Status Audit Techniques: Part One – Audits of Cash Intensive Businesses by Cory Stigile

This is the first of a six part series devoted to sensitive issue examinations of cash intensive businesses. In these situations, examiners frequently utilize various indirect methods of determining the income of a taxpayer. Financial Status Audit Techniques (FSAT). FAST’s include various audit and investigative techniques available to corroborate or refute a taxpayer’s claim about their […] Read More…

Read More

Use of a Kovel Accountant in Indirect Method Audits by Cory Stigile

In civil tax audits that include potentially sensitive issues, counsel will often engage a team of representatives, including a forensic accountant. Engagement of the accountant by counsel should be carefully designed to extend the attorney-client privilege to communications with the accountant pursuant to the engagement by counsel. The Kovel Accountant. Although Code Section 7525 extends common law protections […] Read More…

Read More

Court Holds FBAR Penalty Over $100,000 Is Illegal by Robert S. Horwitz

Section 5321(a)(5)(A) provides that the Secretary of Treasury “may impose a civil money penalty” on anyone who violates the FBAR reporting requirements.  Originally, the penalty for willful violation was the greater of the amount in the account (not to exceed $100,000) or $25,000. In 2004, Congress amended the FBAR penalty provision to increase the maximum willful […] Read More…

Read More

The New Section 162(q) of the 2017 Tax Cuts & Jobs Act: The Price of Confidentiality in Sexual Harassment Cases, #NoDeduction by Sandra R. Brown

In the wake of numerous allegations of sexual assault and sexual harassment involving well-known entertainment and media notables such as producer Harvey Weinstein, actors Kevin Spacey and James Franco, NBC News anchor Matt Lauer, CBS News host and journalist Charlie Rose, and Hip Hop mogul and producer Russell Simmons, just to name a few, the […] Read More…

Read More

International Penalties Beware of Modified Form 872, Consent to Extend Time to Assess By EDWARD M. ROBBINS, Jr.

Beware: some IRS Agents are modifying Form 872 (Consent to Extend the Time to Assess Tax) to include additional language for international penalties and blown statutes.  Although, the forms appears to be the standard preapproved Form 872, reflecting “last revised in July of 2014” or “last revised January 2018”, the altered form contains an additional […] Read More…

Read More

Important This site makes use of cookies which may contain tracking information about visitors. By continuing to browse this site you agree to our use of cookies.