Articles

Articles

Practical writing on tax disputes, audits, appeals, collections, and tax planning.

  • Settling Unpaid Taxes With Sporadic or Seasonal Income

    Sporadic or seasonal income can make it difficult to settle back taxes with the IRS.  For example, if you have a large one time payment that is not likely to continue, can the IRS consider this in evaluating how much you can pay the IRS?  The court addresses this in Margolis-Sellers v. Commissioner, T.C. Memo.… Read →

  • Can a Tax Crime Sentence Impact the Sentence for a Related Crime?

    If someone commits a financial crime and, at the same time, commits a tax crime, can the tax crime sentence be used to enhance the sentence for the financial crime?  The court addresses this in United States v. Smith, No. 18-3222 (8th Cir. 2019).  The answer may surprise you. Facts & Procedural History The defendant… Read →

  • Does a Letter Sent to IRS Count as a Refund Claim?

    Taxpayers have a limited time to file refund claims to recoup money from the IRS.  The IRS provides tax forms to be used for making these requests.  But what happens if the If the taxpayer does not use the forms the IRS provided and, instead, writes letters to the IRS?  Can the letters count as… Read →

  • Appraiser’s Assistant Not Subject to Penalty for Inflated Appraisal

    The IRS has attempted to expand its regulatory power by regulating those who prepare or assist in preparing tax returns. The courts have stifled these efforts. The recent United States v. Zak, No. 1:18-cv-05774 (N.D. Ga. 2019) case provides an example where the IRS attempted to regulate the conduct of those who merely assist a… Read →

  • Sale of Trailers Doesn’t Qualify for Installment Sale Treatment

    If you buy, subdivide and sell real estate, can you seller-finance the sales and report the gain over a long period of time? The answer is generally yes, but advance planning is needed. The court addresses this in Joyner Family Limited Partnership v. Commissioner, T.C. Memo. 2019-159. Facts & Procedural History The taxpayers purchased land… Read →

  • IRS Says Extra Legroom for Flight is “Necessary” to Fly

    If you pay an airline for premium economy seating, is the amount you pay subject to the air transportation excise tax for the airline? The answer depends on whether the seating is necessary. Given the smaller spaced allotted for each passenger, one conclude that premium seating is necessary. The IRS determined that it is in… Read →

  • The Start of an IRS Audit: To Disclose or Not?

    If a taxpayer submits an amended return at the start of an IRS audit, can they avoid penalties for doing so?  The rules allow large case taxpayers to make post-audit disclosures and avoid penalties. But what about smaller taxpayers?  Should they make disclosures to IRS auditors at the start of the audit process?  The Beigalski… Read →

  • When An IRS Decision Maker Gets it Wrong

    One thing that is different about working for the IRS is that you are tasked with making decisions. It is about making decisions and processing cases or forms. This is true for just about every taxpayer-facing job function within the…  Read →

  • Sentence Enhancements in Criminal Tax Cases

    The federal sentencing guidelines help the courts set criminal sentences. These guidelines have to be considered when deciding whether to accept a plea agreement and how to handle the trial. The recent United States v. Kushimo, No. 18-3222 (3d. Cir. 2019), case provides an opportunity to consider two of the sentencing enhancements that often apply… Read →

  • The IRS Recent Focus on S Corp Owners

    The IRS has announced several new compliance campaigns focusing on S corporations. This is needed as the audit rate for S corporation is extremely low. The most recent IRS compliance campaign focuses on shareholder stock basis issues for S corporation…  Read →

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