Document summaries for the week of Feb. 11, 2019

INDIVIDUALS

Court finds couple who filed ‘zero returns’ liable for tax deficiencies and penalties

The Tax Court held that arguments presented by a tax protestor couple who did not report their income, and instead filed “zero returns” claiming refunds of withheld taxes, were frivolous, and the couple were therefore liable for tax deficiencies the IRS assessed. The court also held that, while the couple were not liable for penalties under Sec. 6663(a) because they did not file valid returns for any of the years at issue, they were liable under Sec. 6651(f) for fraudulent-failure-to-file penalties and for late-payment penalties under Sec. 6651(a)(2). Hendrickson, T.C. Memo. 2019-10 (2/11/19).

 

IRS PROCEDURE

Taxpayer advocate’s annual report to Congress

National Taxpayer Advocate Nina Olson released her annual report to Congress, cataloguing problems encountered by taxpayers and making recommendations. Annual Report to Congress, 2018 (2/12/19).

Newsletter Articles

TECHNOLOGY

2018 tax software survey

Among CPA tax preparers, tax return preparation software generates often extensive and ardent discussion. To get through the rigors of tax season, they depend on their tax preparation software. Here’s how they rate the leading professional products.

DEDUCTIONS

Qualified business income deduction regs. and other guidance issued

The package includes final regulations, guidance on how to calculate W-2 wages, a safe-harbor rule for rental real estate businesses, and new proposed rules on the treatment of previously suspended losses.