First-time abatement: Procedure and case law updates
An automated process for first-time abatements could ensure consistent application of relief for taxpayers.
Penalties
Knowledge of tax-related proceeding necessary for obstruction conviction
A taxpayer must be aware of a pending tax-related proceeding to be convicted of obstructing or impeding due administration of the Code.
The Offshore Voluntary Disclosure Program and cryptocurrency
The IRS is ending the Offshore Voluntary Disclosure Program just as its enforcement of cryptocurrency compliance increases.
Economic substance doctrine applied to conservation easements
The IRS stated it would challenge the tax benefits of certain syndicated conservation easement transactions.
Strategies for minimizing estimated tax payments
Taxpayers can use various techniques to minimize estimated tax payments throughout the year while also avoiding underpayment penalties.
Employment tax penalties: Let’s keep it civil
This article focuses on the potential criminal consequences that can arise when a business fails to collect or pay over withheld tax.
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.
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.
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.
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.
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.
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.
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.
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.
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.
The Preparer Penalties of Sec. 6694 and Sec. 6695
This item discusses the two penalty areas that apply to preparers.
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.
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.
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.
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.
