We are often asked who can sign a POA or Form 2848, Power of Attorney and Declaration of Representative, for a limited liability company or LLC? The IRS addressed this in AM 2015-004. About Form 2848 – Power of Attorney The Form 2848 allows the IRS to disclose taxpayer information to persons who represent the… Continue reading Who Can Sign a Form 2848 Power of Attorney for an LLC
Category: IRS Audits
About IRS Audits
The IRS uses the audit process to increase the amount of tax you owe. It is an adversarial process and should be handled accordingly.
This page covers recent cases, rulings, and guidance for IRS audits. Scroll down to read the articles.
If you want to read more about IRS audits or see how we can help, you can read this page about IRS audits.
Otherwise, if you need help dealing with an IRS audit, please schedule an appointment with our tax attorneys online. You can also call us at (713) 909-4906.
Where Did the Tax Protesters Go?
It has almost been twenty years since Congress enacted the Revenue Restructuring Act of 1998 (“RRA98”). RRA98 prohibits the IRS from designating taxpayers as “tax protesters.” What is a Tax Protester? A tax protester is someone who uses illegal methods to protest the tax laws. This often includes Constitutional and other arguments about the taxpayer… Continue reading Where Did the Tax Protesters Go?
IRS Appeals: New Evidence & Theories
The IRS released a memo describing Phase II of the Appeals Judicial Approach and Culture (AJAC) program. This program is intended to formalize many of the best practices of the IRS Office of Appeals (Appeals). Tax disputes often end up in Appeals. Appeals is able to successfully resolve or settle most cases. The Appeals process… Continue reading IRS Appeals: New Evidence & Theories
Truck Driver Expenses Not Subject to Higher Substantiation
The absence of records results in the disallowance of tax deductions and credits on audit. This is particularly true for expenses that are subject to the higher substantiation requirement in Section 280F, such as travel expenses. In Baker v. Commissioner, T.C. Memo. 2014-122, the court considered whether a truck driver’s transportation expenses are subject to the… Continue reading Truck Driver Expenses Not Subject to Higher Substantiation
Truck Expenses Not Deductible Due to Inadequate Mileage Log
In Houchin v. Commissioner, T.C. Summary Opinion 2014-29, the U.S. Tax Court concluded that truck expenses were not deductible as the mileage log did not note the locations the taxpayer traveled to. Facts & Procedural History Mr. Houchin worked as a truck driver, but was unemployed in 2010. He collected unemployment compensation. Mr. Houchin also… Continue reading Truck Expenses Not Deductible Due to Inadequate Mileage Log
IRS Announces Significant Changes to Audit Process
The Large Business & International or LB&I division of the IRS recently announced significant changes to the way its IRS auditors gather information from taxpayers. These announcements were made by directives issued by the LB&I Commissioner to all LB&I agents, which makes it mandatory for IRS agents to follow the directives. Reasons for The Changes… Continue reading IRS Announces Significant Changes to Audit Process
IRS De-Coordinates All Coordinated Issue Papers
The IRS de-coordinated its remaining Coordinated Issue Papers yesterday. This is the final step in the IRS ending its coordinated issue or tiered program. The IRS’s coordinated issue or tiered program was how the IRS was identifying and working challenging tax issues that presented compliance problems. Coordinated Issue Papers were instructions for IRS auditors on… Continue reading IRS De-Coordinates All Coordinated Issue Papers
Car and Truck Expenses Allowed Based on Mileage Not Actual Costs, Absent Records
In Aivatzidis v. Commissioner, T.C. Summary Opinion 2013-105, the U.S. Tax Court concluded that a professional driver could deduct expenses based on mileage, but not for actual expenses. This case provides an example of why drivers should compute car and truck expenses based on mileage if they do not have sufficient records. Facts & Procedural… Continue reading Car and Truck Expenses Allowed Based on Mileage Not Actual Costs, Absent Records
IRS Closing Agreement Valid If Not Reviewed by Joint Committee on Taxation?
In AM 20133301F, the IRS addressed the validity of a closing agreement that was not submitted to the Joint Committee on Taxation or JCT for review prior to signing the agreement. Facts & Procedural History The taxpayer was an insurance company whose tax returns were being audited by the IRS. The IRS and taxpayer asked… Continue reading IRS Closing Agreement Valid If Not Reviewed by Joint Committee on Taxation?
About IRS Appeals AJAC Project
The IRS Office of Appeals just released a memo describing its changes pursuant to its Appeals Judicial Approach Culture (AJAC) project. These changes do not really break new ground, but they address a few key issues that are often in dispute in appeals cases. About the IRS Office of Appeals The IRS Office of Appeals is… Continue reading About IRS Appeals AJAC Project