IRS Collections, Liens & Levies

TOPICS / PROCEDURE

December 1, 2017

Restitution does not support the imposition of interest and additions to tax

Tax Court held that the IRS was not authorized to add underpayment interest or additions to tax to the restitution taxpayers were ordered to pay as part of a sentence for criminal tax violations.

November 1, 2017

Taxpayer’s reliance on tax preparer who erred was reasonable and in good faith; penalties abated

The Tax Court found that a taxpayer had reasonably relied on her preparer’s advice in determining which year to include income.

July 1, 2017

Employment tax enforcement is trending

Practitioners should have a basic awareness of some of the unique tools the government uses to enforce employment tax laws.

July 1, 2017

Tax preparer mistakes: Taxpayer penalties and the tax treatment of indemnity payments

Relying on a tax professional does not guarantee that the penalty will be removed for a taxpayer.

June 1, 2017

The trust fund recovery penalty and LLCs

A responsible person may be subject to the TFRP if it can be shown he or she willfully failed to pay the trust fund taxes due.

May 1, 2017

Taxpayer’s arguments for CDP review of penalty tank on appeal

A taxpayer was not entitled to challenge a penalty, which was already disputed in an administrative proceeding at the IRS Appeals office, in a CDP hearing.

May 1, 2017

IRS targets ‘micro-captive transactions’ as transactions of interest

Treasury and the IRS continue their scrutiny of captive insurance transactions that they deem to be abusive.

April 1, 2017

International information return penalties remain a significant issue for taxpayers and advisers

This item explores the risks for certain delinquent or substantially incomplete international information returns.

March 1, 2017

IRS Notice Explains De Minimis Safe Harbor for Information Returns/Payee Statements

The IRS issued a notice that provides guidance on the de minimis safe harbor from information reporting penalties and the payee election not to have the safe harbor apply.

February 1, 2017

The Preparer Penalties of Sec. 6694 and Sec. 6695

This item discusses the two penalty areas that apply to preparers.

January 1, 2017

Pesky IRS Penalties: How to Get Them Abated for Clients

This item summarizes some common IRS penalties and the procedural and practical ways practitioners can obtain a penalty abatement.

October 1, 2016

Foreign Information Returns, Income Tax Returns, and Civil Penalties

To avoid harsh penalties, a taxpayer should timely file all foreign information returns, even if that taxpayer cannot timely file its income
tax return.

August 1, 2016

Understatement of Income Not Fraudulent

A pattern of fraudulent conduct in a tax accountant’s preparation of his clients’ returns was not sufficient to prove that underpayments on his own returns were due to fraud.

July 1, 2016

Navigating the Murky Waters of IRS Payment Agreements

This item outlines the pros and cons of the various types of installment agreements.

July 1, 2016

Material Adviser Penalty Rules Are Clarified

The IRS issued final rules for the penalty imposed on material advisers for failing to provide the IRS a list of advisees with respect to reportable transactions.

May 1, 2016

Legislation Permanently Bans Internet Taxes, Increases Failure-to-File Penalty

Congress passed the Trade Facilitation and Trade Enforcement Act of 2015, making permanent the moratorium on states and
localities taxing Internet access.

April 27, 2016

Final Regulations Clarify $10,000-Per-Day Material Adviser Penalty

The IRS issued final rules on how to apply the $10,000-per-day penalty under Sec. 6708 when a material adviser fails to provide the Service a list of advisees with respect to reportable transactions.

April 1, 2016

CDP Notice of Determination Valid If Actually Received

The Tax Court held that a notice of determination from a collection due process hearing is valid for purposes of starting the period in which a taxpayer must file a petition with the Tax Court if the notice is actually received by the taxpayer.

April 1, 2016

Streamlined Filing Procedures for Disclosing Foreign Assets and Income

Qualifying taxpayers who failed to report foreign-source income and can prove their conduct was not “willful” could enjoy significantly reduced penalties.

April 1, 2016