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.
Penalties
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.
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.
Navigating the Murky Waters of IRS Payment Agreements
This item outlines the pros and cons of the various types of installment agreements.
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.
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.
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.
PATH Brings Changes to Federal Penalty Computations
This item discusses the PATH legislation’s immediate impact on certain federal penalty computations.
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.
IRS Made “Initial Determination”
IRS could impose penalty because the examiner had made an initial determination that the penalty applied.
Passport Revocation and Third-Party Debt Collection Provisions Enacted
Passports can be denied to any person whom the IRS certifies as having seriously delinquent tax debt.
