In Finnegan v. Commissioner, T.C. Memo. 2016-118, the U.S. Tax Court refused to reconsider its previous decision that a tax return preparers fraud keeps the statute of limitations open on the taxpayer’s Federal income tax return. Facts & Procedural History On February 7, 2013, the IRS issued a notice of deficiency for tax years 1994-2001.… Continue reading Court Affirms that Tax Prepearer Fraud Holds Open Assessment Statute
Tax Articles
What You Need to Know About IRS Federal Tax Lien | Part One
What You Need to Know About IRS Federal Tax LienIf you have unpaid taxes, you may be surprised to learn that the IRS has a lien against your property. The IRS federal tax lien is the tool that allows the IRS to collect unpaid taxes. The IRS’s federal tax lien can have a devastating impact on your personal finances. This is the first installment in a three-part series that explains what you need to know about the IRS’s federal tax lien.The IRS’s Federal Tax LienA lien is a legal term for a
Unperfected Loan Trumped IRS Lien
The IRS has broad collection powers. It is always interesting to see cases where other creditors are able to collect despite the IRS’s collection powers. The U.S. v. Heptner, Case No. 8:15-cv-1125-T-33MAP case provides an example. In Heptner the U.S. District Court in Tampa concluded that a loan from the taxpayer’s former employer trumped the […]
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Unperfected Loan Trumped IRS Lien
The IRS has broad collection powers. But its collection powers are not unlimited. The recent U.S. v. Heptner, Case No. 8:15-cv-1125-T-33MAP (Dist. Fla. 2016) case provides an example. Facts & Procedural History Heptner practiced law from 1984-2001. After being disbarred, he was employed as a legal advisor and in-house counsel by Damien Freeman, an entrepreneur,… Continue reading Unperfected Loan Trumped IRS Lien
5 Reasons – You Should Resolve Your IRS Debt Today
Penalties continue to accrue. Unpaid tax debts are subject to late payment penalties. The penalty is typically half of one percent of the amount of the unpaid tax. This may not sound significant given the low rate, but it adds up. The penalty is computed each month or part of a month after the date the tax is due. This is means that the penalties start accruing each month from the day your tax return was to be filed. It should also be noted that the penalty jumps to five percent a month if
New Evidence Not In Record Can Be Considered by Court
Cases before the U.S. Tax Court are often won or lost by whether evidence is or is not admitted in the record. Lunnon v. Commissioner, No. 15-9007 (10th Cir.), provides an example of how this works in a tax collections case. Facts & Procedural History Mr. Lunnon failed to pay employment and unemployment taxes for… Continue reading New Evidence Not In Record Can Be Considered by Court
Asset Sale Did Not Trigger Transferee Liability for Buyers Taxes
In Sloan v. Commissioner, T.C. Memo. 2016-115, the U.S. Tax Court refused to apply transferee liability under Section 6901 to make a taxpayer who sold company assets to a third party liable for the third party’s tax liability. The court reached this conclusion even though there was some indication that the taxpayers’ advisers knew that… Continue reading Asset Sale Did Not Trigger Transferee Liability for Buyers Taxes
Delayed Sale to Former Spouse Not Taxable
Divorce can present tax savings opportunities. Many of the tax savings strategies involve transferring property and income therefrom to the spouse who is in the low- or no-tax tax bracket. The recent Belot v. Commissioner, T.C. Memo. 2016-113, case addresses the tax free transfer of property following a divorce. Facts & Procedural History Mr. and Ms.… Continue reading Delayed Sale to Former Spouse Not Taxable
IRS Tax Lien Did Not Attach to Trust Property
In Duckett v. Enomoto, Dkt No. 2:14-cv-01771, the U.S. District Court in Arizona concluded that a Federal tax lien for taxes owed by a trust beneficiary did not attach to the entire trust. This issue often comes up in IRS collection cases where the taxpayer is the beneficiary of a trust. Facts & Procedural History … Continue reading IRS Tax Lien Did Not Attach to Trust Property
Refund Claims Involving Loss Carrybacks Include Computational Adjustments in Earlier Years
In Stein, LLC, v. United States, No. 2:13-03224, the United States District Court for the Western District of Louisiana addressed the question of whether refund claims stemming from loss carrybacks include computational adjustments in the carryback years. This type of issue often comes up when closing out IRS audits, which is evidenced by this case… Continue reading Refund Claims Involving Loss Carrybacks Include Computational Adjustments in Earlier Years