Negotiation with collections officer is not administrative proceeding
The IRS abused its discretion in failing to consider the taxpayers’ proposed offer in compromise, installment agreement request, and economic hardship claim.
Penalties
Avoiding an accuracy-related penalty through the reasonable-cause exception
By knowing the factors courts consider in determining whether a taxpayer meets the requirements for the reasonable-cause exception, and how the courts have applied the factors, tax advisers can help their clients properly mount a defense to an accuracy-related penalty.
Tax preparer due diligence rules are finalized
The IRS issued final regulations on the penalty that applies to tax return preparers who fail to exercise due diligence in preparing returns for taxpayers who are claiming head-of-household filing status, the earned income tax credit, the child tax credit, the additional child tax credit, or the American opportunity tax credit.
Cryptocurrency: Compliance challenges and IRS enforcement
This item discusses some key U.S. tax implications and unanswered questions of cryptocurrencies and identifies possible avenues of relief for taxpayers with unreported income or assets connected to cryptocurrency.
IRS gives taxpayers penalty and late-election relief for Sec. 965 transition tax
The IRS announced relief from late-payment penalties and that it will allow late elections for taxpayers subject to the new Sec. 965 transition tax on deemed repatriated foreign earnings.
Failure to update penalty regulation costs IRS
The failure to update the regulations to reflect a statutory increase in the FBAR penalty amount prevents the IRS from assessing the full statutory amount of the penalty.
Sec. 6676 erroneous claim for refund penalty
The Sec. 6676 penalty is equal to 20% of the amount by which the claim for refund or credit exceeds the amount allowable for the tax year at issue.
First-time abatement: Procedure and case law updates
An automated process for first-time abatements could ensure consistent application of relief for taxpayers.
A review of adequate disclosure rules
Practitioners can protect themselves from significant penalties by following the IRS’s ‘adequate disclosure’ procedures.
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.
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.
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.
