Category: Tax Procedure

Tax Procedure Articles

This page provides timely and thorough coverage of various tax procedure questions, court cases, and rulings.

You can scroll down to read through all of the articles or you can select one of the following options to sort the articles.

No Damages for Emotional Distress for IRS Violations of Bankruptcy Law

When a private party violates the law, there are often consequences. This is especially true for the automatic stay that protects individuals in bankruptcy from collections actions during the bankruptcy proceeding. In Hunsaker v. United States, Case No. 6:16-cv-00386-MC, the Ninth Circuit Court of Appeals concluded that the IRS’s repeated violations of these laws does […]

The post No Damages for Emotional Distress for IRS Violations of Bankruptcy Law appeared first on Houston Tax Attorney: Texas Lawyer.

No Damages for Emotional Distress for IRS Violations of Bankruptcy Law

Can Lump Sum Cash Payment Qualify As Alimony?

When a private party violates the law, there are often consequences. This is especially true for the automatic stay that protects individuals in bankruptcy from collections actions during the bankruptcy proceeding. In Hunsaker v. United States, Case No. 6:16-cv-00386-MC, the Ninth Circuit Court of Appeals concluded that the IRS’s repeated violations of these laws does… Continue reading No Damages for Emotional Distress for IRS Violations of Bankruptcy Law

Partnership Return Corrected by Amended Return

Can Lump Sum Cash Payment Qualify As Alimony?

In U.S. v. Stewart, No. 15-20596, the Fifth Circuit Court of Appeals concluded that the taxpayer was not entitled to a tax refund that was based on a corrected Schedule K-1 received from a partnership the taxpayer owned. The question on appeal was whether a partnership tax return can be corrected by filing an amended… Continue reading Partnership Return Corrected by Amended Return

How Do You Prove You Mailed a Tax Return to the IRS?

In In Re McGrew, No. 13-00149, the U.S. Bankruptcy Court for the Northern District of Iowa addressed a dispute as to whether the taxpayer had actually filed her tax return with the IRS. The taxpayer said she did; the IRS said she did not. This is a very common and important issue that taxpayers often […]

The post How Do You Prove You Mailed a Tax Return to the IRS? appeared first on Houston Tax Attorney: Texas Lawyer.

Proving that You Mailed a Tax Return to the IRS

Proving That You Mailed A Tax Return To The Irs

How do you prove that you mailed a tax return to the IRS?  This may sound like a simple question to answer.  It isn’t.  The have been and continue to be disputes involving this very issue.  The recent In Re McGrew, No. 13-00149 (Bank. N.D. IA 2016) provides an example. Facts & Procedural History McGrew filed… Continue reading Proving that You Mailed a Tax Return to the IRS

“One of its Principal Purposes” for an Installment Sale

Accuracy Related Penalties Do Not Apply To Full Understatement Of Tax

What if you could transfer depreciable assets from one legal entity that you own to another legal entity that you own, not report the gain from the sale until some future year, and then step up the tax basis in the assets due to the sale and start taking increased depreciation deductions using the stepped… Continue reading “One of its Principal Purposes” for an Installment Sale

Accuracy Related Penalties Do Not Apply to Full Understatement of Tax

Accuracy Related Penalties Do Not Apply To Full Understatement Of Tax

In Hatcher v. Commissioner, T.C. Memo. 2016-188, the court considered a very common error IRS agents make in computing the Section 6662 accuracy related penalty. The IRS applied the penalty to the entire understatement of tax, rather than the portion of the understatement that was not subject to the reasonable cause defense. This is one… Continue reading Accuracy Related Penalties Do Not Apply to Full Understatement of Tax

How Long Do You Keep Your Tax Records?

Taxpayers often ask how long they have to keep their tax records. Many taxpayers only keep records for three to six years. In Reyonoso v. Commissioner, T.C. Memo. 2016-185, the court considered a case that turned on whether the taxpayer could produce records to support that he had made a mark-to-market election nearly twenty years […]

The post How Long Do You Keep Your Tax Records? appeared first on Houston Tax Attorney: Texas Lawyer.

How Long Do You Keep Your Tax Records?

How People And The Tax System Impact Individual Cases

Taxpayers often ask how long they have to keep their tax records. Many taxpayers only keep records for three to six years. In Reyonoso v. Commissioner, T.C. Memo. 2016-185, the court considered a case that turned on whether the taxpayer could produce records to support that he had made a mark-to-market election nearly twenty years… Continue reading How Long Do You Keep Your Tax Records?

How People and the Tax System Impact Individual Cases

How People And The Tax System Impact Individual Cases

In tax, we spend a lot of time focusing on tax rules. But tax rules only go so far. The results in tax cases are impacted by the people who work tax cases as much as they are by the tax rules. Our system of tax administration also plays a role. This is hard to… Continue reading How People and the Tax System Impact Individual Cases