Sometimes it is nice to have a record of what transpired. This is true even if the recording is never used. Just the fact that the recording is being made, and everyone is aware that it is being made, can change the tone and substance of the meeting. The law allows taxpayers to record meetings… Continue reading Taxpayers Cannot Record IRS Telephone Interviews in CDP Hearings
Category: Tax Procedure
Tax Protestor has Constitutional Right to Choose his Tax Attorney
Okay United States v. Nolen is yet another fascinating case (this case will probably make it into the criminal procedure books used in law schools). Nolen addresses the issue as to whether a tax protester has a Sixth Amendment right to choose his own attorney, even if the attorney, unfortunately, insults the court. Facts &… Continue reading Tax Protestor has Constitutional Right to Choose his Tax Attorney
The IRS Has the Burden of Proof for Items of Income
Even the IRS sometimes forgets that it has the burden to prove that a taxpayer earned more income than reported. The Allman v. Commissioner case provides an example of what happens where the IRS attorney shows up to court with no evidence of additional income. Facts & Procedural History The taxpayer worked as an employee for… Continue reading The IRS Has the Burden of Proof for Items of Income
No Tax Penalties for Obscure Tax Forms
Bad facts can create bad law. This describes the law for IRS penalties. The IRS abates or removes penalties at the administrative level for most taxpayers who have good facts. The rest of the cases are litigated–resulting in a lot of court cases where the government wins. It is somewhat rare for taxpayers to prevail… Continue reading No Tax Penalties for Obscure Tax Forms
5 Things to Prepare for an IRS Audit
The IRS audit rate is quite low. But lucky you, you have received an IRS audit notice. Fun stuff. So what do you do? Or what can you do to prepare? There are several things that you might start with. Before getting into those, let’s stop to think about how the IRS audit process. The… Continue reading 5 Things to Prepare for an IRS Audit
IRS “Its All or Nothing” Stance Often Helps Taxpayers
It can be difficult to determine if a person is an employee or an independent contractor. The Rabinowitz v. Commissioner case highlights the difficulties that taxpayers face in making this distinction. Facts & Procedural History Rabinowitz is an insurance salesman. Rabinowitz asked the IRS and, upon IRS refusal, the U.S. Tax Court to lift a… Continue reading IRS “Its All or Nothing” Stance Often Helps Taxpayers
What Are the Chances of Being Audited?
What are the chances of being audited? While the IRS does not release many of the factors that it uses to identify taxpayers for tax audits, the IRS does release general statistics that can help gauge an individual’s audit potential – or can they? The IRS Statistics Looking at the most recent IRS statistics for… Continue reading What Are the Chances of Being Audited?
IRS Statistics for Audit and Enforcement Rates
While the IRS does not release many of the factors that it uses to identify taxpayers for tax audits, the IRS does release general statistics that can help gauge a taxpayer’s audit potential. These statistics help answer the question of “what are the chances of being audited?” IRS Audit Rates Looking at the most recent IRS… Continue reading IRS Statistics for Audit and Enforcement Rates
The IRS’s New Appeals Arbitration Program
The IRS Office of Appeals provides a great forum for resolving IRS tax disputes. While appeals settles a lot of cases, it doesn’t settle them all. This is where the IRS arbitration program comes in. It is for those close cases that almost settled, but didn’t. The IRS recently released Revenue Procedure 2006-44, which sets out… Continue reading The IRS’s New Appeals Arbitration Program
Tax Resolution Firm Job Posting: The Industry Needs to be Regulated….
I thought that I would share with you this Craigslist post that one of my clients forwarded to me: TAX RESOLUTION ASSOCIATES ——————————————————————————– Tax resolution associates wanted for Boulder financial company. ATTENTION: YOU DO NOT HAVE TO HIT A $25k OR $30k FOR BONUS!!!!!!!!!!!We pay 15% at $15k, 20% at $20k and 25% at $25k.… Continue reading Tax Resolution Firm Job Posting: The Industry Needs to be Regulated….