If you are contacted by an IRS special agent for an informal meeting, can statements made during the meeting be used against you in court? The answer is “maybe.” The court addresses this in United States v. Henry, No. 2017-0001 (D. VI 2018). Facts & Procedural History The IRS criminal investigation unit received a tip… Continue reading Statements Made to IRS Special Agents
Tax Articles
Appropriate a Book of Business, Capital or Ordinary Gain?
If an investment advisor is terminated by the bank he works for and the bank keeps the advisors book of business, is the bank compensating the investment advisor for the sale of his book of business or is it paying compensation for services? One would seem to produce capital gain and the other ordinary gain.… Continue reading Appropriate a Book of Business, Capital or Ordinary Gain?
Innocent Spouse Relief for One’s Own Income
While taxpayers are often aware that innocent spouse relief can eliminate their liability for tax on items of income earned by their spouse (or ex-spouse), fewer taxpayers realize that innocent spouse relief can also help with tax on income they earned themselves. The recent Heydon-Grauss v. Commissioner, T.C. Memo. 2018-209, case provides an opportunity to… Continue reading Innocent Spouse Relief for One’s Own Income
IRS Can Collect Father’s Tax Restitution from Son
The rules that allow the IRS to assess and collect criminal restitution as if it is a tax due present some unique questions. In Bontrager v. Commissioner, 151 T.C. 12, the court considered whether the IRS can assess and collect a father’s t…
IRS Can Collect Father’s Tax Restitution from Son
The rules that allow the IRS to assess and collect criminal restitution as if it is a tax due present some unique questions. In Bontrager v. Commissioner, 151 T.C. 12, the court considered whether the IRS can assess and collect a father’s tax restitution payment as tax restitution against the son. Facts & Procedural History… Continue reading IRS Can Collect Father’s Tax Restitution from Son
IRS Appeals Guidance on In-Person Conferences
The IRS Office of Appeals has been making changes to how it conducts appeals conferences. In this past few years, these changes have made it difficult to obtain an in-person conference. The IRS recently issued interim guidance AP-08-1118-0013 to auth…
IRS Appeals Guidance on In-Person Conferences
The IRS Office of Appeals has been making changes to how it conducts appeals conferences. In this past few years, these changes have made it difficult to obtain an in-person conference. The IRS recently issued interim guidance AP-08-1118-0013 to authorize appeals to allow for more in-person conferences. About the IRS Office of Appeals The IRS… Continue reading IRS Appeals Guidance on In-Person Conferences
The Dilemma: File A Timely or An Accurate Tax Return?
If you have an ongoing dispute with the IRS for one or more years and the outcome of that dispute will impact the current year, can you take a wait and see approach to filing the current year tax return? …
The Dilemma: File A Timely or An Accurate Tax Return?
If you have an ongoing dispute with the IRS for one or more years and the outcome of that dispute will impact the current year, can you take a wait-and-see approach for filing the current year’s tax return? Or should you wait to file an amended tax return after the audit? The Namakain v.… Continue reading The Dilemma: File A Timely or An Accurate Tax Return?
Court Clarifies Inventory Capitalization Rules for Producers
There are a few items that are low hanging fruit that make for easy adjustments for IRS auditors. The adjustment for indirect costs is an example of such an adjustment that can be made for any taxpayer that has inventory. The recent Patients Mutual A…