Two Years to File Refund Suit in District Court, Six Years in Federal Court of Claims

If the IRS owes the taxpayer a refund, the general rule is that the taxpayer has to file a refund claim with the IRS, wait for the IRS to disallow the claim, and then, within two years of the date the claim is disallowed, file suit to recoup the refund. This is the general rule.…

Ninth Circuit Says Taxpayer Must Use IRS Form

Do taxpayers have to use the official forms published by the IRS? There are laws and administrative guidance that allow taxpayers to provide the information requested to the IRS without using the actual IRS form in some circumstances. In May v. United States, No. 15-16599 (9th Cir. 2017), the court considered whether a taxpayer is…

Can the IRS Contact Third Parties Without My Permission?

The IRS gathers quite a bit of information about taxpayers. This includes those who have unpaid tax debts and those who the IRS suspects may owe additional taxes. The IRS has the ability to contact third parties in gathering this information. There are rules that must be followed in doing so. When do the Rules……

Can I Get Interest on Unpaid Taxes Removed?

The IRS charges interest on unpaid tax, penalties, and interest. This interest can add up as time passes and the amount can be substantial. The IRS will abate or remove interest balances in certain circumstances, but it is up to the taxpayer to make this request. Even experienced tax professionals often forget about this remedy.……

Have a Foreign Bank Account? What You Need to Know

There are many advantages of having a foreign bank account, such as convenience, hedging against currency risk, etc. For U.S. persons, those advantages have to be weighed against the reporting requirements. Our laws require most foreign bank accounts be reported. There can be stiff civil and criminal penalties for failing to do so. The Foreign……

U.S. Foreign Tax Credit Not Impacted by Repayment of Foreign Tax Refund

The tax assessment and collection process in most foreign countries is markedly different than the process in the U.S. These differences can present a number of challenges for U.S. citizens who reside in foreign countries. In Sotiropoulos v. Commissioner, T.C. Memo. 2017-75, the court considered one of these challenges, namely, how does one determine whether…

Court Considers Economic Substance in S Corp Transactions

The IRS challenges some tax positions by asserting that the transactions lack economic substance. This can allow the government to unwind or ignore transactions that comply with our tax laws if there is no legitimate business purpose for the transactions other than tax savings. There is a growing body of court cases that helps define…

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