The Tax Code imposes several artificial deadlines and consequences for not meeting those deadlines. Many tax deadlines are strict. The result in tax cases often come down to whether a taxpayer can prove that he met these deadlines. In Chan v. United States, No. 2:15-cv-739-DN-BCW (D. Utah 2016), the court considered whether an Adobe PDF… Continue reading How to Prove Refund Claim Timely Filed
Category: Tax Returns
About Problem Tax Returns
Late, unfiled, false, and fraudulent tax returns can result in increased tax balances, missed elections, and penalties and interest. In some cases, they can even trigger criminal liability.
You can read more about unfiled and late tax returns here. You can read more about false and fraudulent tax returns here. You can read more about amended tax returns here.
This page covers recent cases, rulings, and guidance for late, unfiled, false, and fraudulent tax returns. Please scroll down to read the articles.
If you need help dealing with a problem tax return, please schedule an appointment with our tax attorneys online. You can also call us at (713) 909-4906.
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
Who Can Sign a Form 2848 Power of Attorney for an LLC
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
Joint Committee Review Limit Increased to $5 Million
The Joint Committee on Taxation or JCT is a part of the U.S. Congress. It is tasked with investigating the U.S. tax system and reporting on proposed measures and methods for the simplification of taxes. To carry out this function, the IRS is obligated to provide a report to the JCT for any refund in… Continue reading Joint Committee Review Limit Increased to $5 Million
Reporting Requirements for ISOs and ESPPs
The IRS has released proposed Regulations to implement the recent changes in Code Sec. 6039. These Regulations require corporations to report the transfer of stock upon the exercise of incentive stock options (ISOs) and by employee stock purchase plans (ESPPs). Pursuant to the changes in Code Sec. 6039, corporations must provide this information to the… Continue reading Reporting Requirements for ISOs and ESPPs
U.S. International Tax Withholding and Reporting Requirements
Payments made by U.S. citizens and resident aliens (“U.S. persons”) to non-U.S. persons are typically subject to U.S. tax withholding and result in U.S. tax reporting requirements. These requirements can be difficult to understand and a misstep can prove to be very costly. U.S. Tax Withholding Whether a U.S. person is required to withhold tax… Continue reading U.S. International Tax Withholding and Reporting Requirements
Cash Payments Deposited by Salesman & the Form 8300
Cash-based businesses pose a number of problems for the IRS. They may also be involved in tax fraud. The Form 8300 allows the IRS to track cash payments for this very purpose. Chief Counsel Advice Memorandum 200707001 provides an example involving cash payments deposited by a salesman for a car dealership. Facts & Procedural History… Continue reading Cash Payments Deposited by Salesman & the Form 8300
Prisoners Filing False Tax Returns
There are serious consequences for filing false tax returns. This can include civil and criminal penalties. These penalties may not be all that effective of a deterrent for someone who is currently incarcerated, which is evidenced by cases like United States v. Wardell, 05-1492 (10th Cir. 2007). Facts & Procedural History Wardell is a prisoner incarcerated… Continue reading Prisoners Filing False Tax Returns