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 …..
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Tax Articles
Do You Have to Use the IRS’s Official Forms?
Do taxpayers have to use the official forms published by the IRS? In May v. United States, No. 15-16599 (9th Cir. 2017), the court considered whether a taxpayer is subject to the listed transaction penalty if he fails to file the IRS’s reportable transaction form, but the IRS is otherwise furnished with all of the information… Continue reading Do You Have to Use the IRS’s Official Forms?
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 …
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 …
Court Affirms Broad Scope of the Duty of Consistency
The IRS can use the duty of consistency doctrine to disallow tax deductions, credits, etc. in the current year when the deduction, credit, etc. in the current year is based on facts that differ from facts reported to the IRS in an earlier year. In Musa v. Commissioner, No. 16-1841 (7th Cir. 2017), the court agreed […]
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Duty of Consistency Applies to Different Types of Tax Returns
Taxpayers have to report tax positions consistently from year to year. They cannot get a tax benefit from taking inconsistent positions. The duty of consistency doctrine provides for this. But does this doctrine require items to be reported consistently on different types of tax returns? The court addressed this in Musa v. Commissioner, No. 16-1841 (7th… Continue reading Duty of Consistency Applies to Different Types of Tax Returns
IRS Must Refund Penalties Despite Tax Malpractice Recovery
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 …
IRS Must Refund Penalties Despite Tax Malpractice Recovery
Can the IRS withhold or set off a penalty refund owing to a taxpayer if the taxpayer has already recovered the amount in excess of the penalty from its tax attorney for malpractice? The court considered this in Ervin v. United States, No. 4:13-CV-00127-JHM (W.D. Ky. 2017). Facts & Procedural History Ervin participated in a tax shelter… Continue reading IRS Must Refund Penalties Despite Tax Malpractice Recovery
Can I Correct a Tax Return Filed Several Years Ago?
We are often asked if an error on a prior year tax return can be corrected if it results in an increased tax in the current year. The answer is “maybe.” There are two issues that have to be considered, …
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. …