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 →

  • 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 →

  • 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 →

  • 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 →

  • Records Needed for Partial Asset Dispositions

    Taxpayers often overlook “partial asset dispositions.” Their tax advisers do too. This may be due to it being a depreciation issue that seems unimportant. It may also be that the partial asset disposition is a relatively new concept. Regardless, partial…  Read →

  • Voluntary Disclosure to IRS of Privileged Communication

    The attorney-client privilege projects confidential communications with attorneys. It allows the attorney to avoid disclosing protected communications. But what if the attorney voluntarily discloses information and the disclosure is to the IRS about a tax matter? The court addresses this…  Read →

  • Can the IRS Ignore the Legal Existence of a Corporation?

    If a taxpayer forms a legal entity and it is taxed as a C corporation, can the IRS disregard the legal existence of the corporation and assess the corporation’s tax to the owner? The court addresses this in Russell v.…  Read →

  • The Timing Trap: Failed Installment Sales

    What happens if you sell an asset and are to receive payments in the future, but your accountant fails to elect the installment method? Do you have to report the full amount of the gain in the year of sale?…  Read →

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