Many taxpayers do not understand the implications of operating a business as a LLC when it comes to payroll tax liabilities. Apparently even some accounting firms do not fully understand this concept. The recent McNamee v. Dept. of Treasury case involves a six-person accounting firm that was operated as a single member LLC. The accounting… Continue reading Payroll Taxes: The Single Member LLC Owner (Again)
Category: Tax Procedure
Substantial Compliance: Convincing the IRS to Look the Other Way
A professor can increase overall class scores for extra credit. A police officer is authorized to issue warnings for minor traffic infractions. What about IRS auditors? Do IRS revenue agents have this authority when conducting IRS audits? Our laws generally excuse minor infractions. This is often referred to as the doctrine of substantial compliance. The… Continue reading Substantial Compliance: Convincing the IRS to Look the Other Way
Strategy for Paying Late Employment Taxes
How does the IRS apply partial payments when a trust fund penalty has been assessed? Can the IRS apply payments to the trust fund portion of the employment taxes or must it apply the payment to the non-trust fund penalty portions? Trust Fund & Non-Trust Fund Tax Employers are generally required to withhold employment taxes… Continue reading Strategy for Paying Late Employment Taxes
Can One Spouse Cause IRS to Void Other’s Alimony Deduction?
If a divorce decree says that a payment to an ex-spouse, does that mean that it is alimony the ex-spouse has to report as income for Federal income tax purposes? And if not, can the ex-spouse who receives the payment request a ruling from the IRS to say that the payment was not taxable to… Continue reading Can One Spouse Cause IRS to Void Other’s Alimony Deduction?
Court Cannot Force Taxpayer to Hire Tax Attorney
If someone does not want to hire a tax attorney, can the court force the taxpayer to hire one? The court addresses this issue in the United States v. Baucom, 486 F.3d 822, 829 (4th Cir. 2007) (and combined United States v. Davis) court case. The Facts & Procedural History Taxpayers Martin Louis Baucom and… Continue reading Court Cannot Force Taxpayer to Hire Tax Attorney
IRS Tax Attorneys Realign Organization Structure
The IRS Office of Chief Counsel employs the IRS’s own tax attorneys. These attorneys handle most of the civil tax court matters for the IRS. The IRS released IRS Office of Chief Counsel Notice CC-2007-012 which says that the Procedure and Administration Section of the Office of Chief Counsel subsidiary legal divisions have been reorganized into… Continue reading IRS Tax Attorneys Realign Organization Structure
City of Chicago Takes Church Property For Un-Owed Taxes
The recent Beth-El All Nations Church case shows just how far state and local tax collectors will go to collect taxes – even when the taxes are not owed. Facts set out by the court: An employee of the City of Chicago mistakenly addressed a notice to Beth-El All Nations Church at 1534 East 63rd… Continue reading City of Chicago Takes Church Property For Un-Owed Taxes
Florida Department of Revenue Harasses Taxpayer
Some states have a very poor record with regard to collecting taxes via legal means. The State of Florida is one of those states. In the recent In re: Omine case the Eleventh Circuit Court of Appeals details the Florida Department of Revenue’s illegal collection activities. Facts & Procedural History On Omine Case Gregg and… Continue reading Florida Department of Revenue Harasses Taxpayer
Offer in Compromise Deemed Accepted by the IRS
The IRS consumes volumes of information. It processes this information largely by processing paper forms. This includes paper forms submitted by you, the taxpayer and your tax attorneys, and by internal forms created by IRS employees. This inefficient paper form submission and processing is complemented by an insistence on sending taxpayer notices by mail. The… Continue reading Offer in Compromise Deemed Accepted by the IRS
“We the People Foundation” Loses Court Battle, Wins Publicity
“We the People Foundation” recently lost yet another tax-related court case, but, perhaps wining in court is not really what the group is after. According to the court record, We the People have: engaged since 1999 in “a nationwide effort to get the government to answer specific questions” regarding what plaintiffs view as the Government’s… Continue reading “We the People Foundation” Loses Court Battle, Wins Publicity