In Ervin v. United States, No. 4:13-CV-00127-JHM (W.D. Ky. 2017), the court considered whether the government can withhold or set off a penalty refund owing to a taxpayer if the taxpayer has already recovered the amount in excess of the …
Category: Everything Tax Law Blog
Computing the Reportable Transaction Penalty
The Section 6707A reportable transaction penalty can be difficult to work with given the more limited for contesting the penalty. The court addressed this in Bitter v. Commissioner, T.C. Memo. 2017-46, in the context of a Section 412(i) plan. Tax …
How to Challenge an Invalid IRS Notice of Deficiency
The IRS is required to send taxpayers a notice of deficiency before it can assess additional tax. The notice itself has to put the taxpayer on notice that the IRS made a determination that there was a tax deficiency (i.e., an amount owed),…
Post Office Tracking Data Can Result in Tax Disputes
There have been a number of tax cases involving disputes as to when tax documents are mailed to the government. In Tildon v. Commissioner, No. 15-3838 (7th Cir. 2017), the court considered a dispute that turned on whether U.S. Postal Service tracking data…
Using IRA Funds to Settle a Probate Dispute
Inherited IRAs can present a number of challenges. In Ozimkoski v. Commissioner, T.C. Memo. 2016-228, the court considered the tax implications of a withdraw from an inherited IRA that was used to settle a probate dispute with the couple’s son. The case shows…
Lost IRS Notice Was Timely, Despite IRS Not Following Procedures
There are a number of dates that must be met when it comes to taxes. Many of these dates are triggered by some action by the IRS. This raises the question as to what happens if the taxpayer is not aware that the IRS took the action and the IRS destroys the primary evidence that […]
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TIGTA Suggests IRS Follow Transfer Pricing Roadmap
Transfer pricing is and has been the most significant and difficult issue the IRS audits. The audits are typically closed with the IRS agents proposing unreasonably large adjustments and IRS appeals sustaining a very low percentage of the adjustments. The IRS has not been very successful in litigating transfer pricing cases either. As a result, […]
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Stay-at-Home Mom Not Liable for Trust Fund Recovery Penalty
The IRS has the ability to assess a trust fund recovery penalty against those who are responsible for withholding payroll taxes for employees if they fail to withhold and pay over the taxes to the IRS. Then penalty is equal to the amount of the withheld but unpaid tax. Liability for the penalty falls on […]
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Ability to Change Roof Disqualifies Facade Easement Deduction
In Partita Partners, LLC. v. United States, No. 15-cv-2561 (S.D.N.Y. 2016), the court considered whether the taxpayer was entitled to a charitable deduction for donating a facade easement to charity. The issue was whether the retaining the right to change the roof on the building negated the charitable deduction for donating the facade easement. About […]
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TIGTA Questions IRS’s Future State Reorganization
IRS has the power to decide who gets what, when, and how when it comes to federal taxes. Many of these decisions are made by IRS employees as part of examining tax returns. This is why we are all watching the IRS reorganize its audit function. The Treasury Inspector General for Tax Administration (“TIGTA”) recently […]
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