Lien is invalid because IRS did not verify notices of deficiency
Lien held invalid because settlement officer did not properly verify that notices of deficiency had been issued to taxpayer and sent to his last known address.
Collections, Liens & Levies
Corporation not covered by economic hardship exception
The economic hardship exception to a levy does not apply to corporations.
Sec. 7345 does not violate constitutional right to travel
Sec. 7345 does not violate the Fifth Amendment because it does not prohibit international travel.
Validity of notice is based on how and where it was sent, not who received it
The notice of a right to a CDP hearing is valid if it is properly sent to the taxpayer’s last known address, regardless of who receives it at that address.
Practical highlights of recent tax research
This article looks at recent academic research of interest to tax practitioners.
TFRP: A possible second financial crisis for business owners
Employers should beware of the trust fund recovery penalty.
Taxpayer allowed to challenge underlying liability in CDP hearing
A taxpayer did not have an opportunity to challenge a trust fund recovery penalty where he did not receive a letter that scheduled an Appeals conference.
Penalty defenses and the supervisory-approval requirement
Under Sec. 6751(b)(1), many penalties cannot be assessed by the IRS before written managerial approval is obtained by the immediate supervisor of the person making the initial determination of the penalties. This article discusses which penalties Sec. 6751(b)(1) applies to, when an initial determination of a penalty occurs, whose approval is required, and other issues regarding the written-supervisory approval requirement.
Does substantial authority provide penalty protection?
This item discusses whether substantial authority protects against a penalty for a return position that is contrary to a regulation.
Understanding the filing relief for ‘time-sensitive acts’ in Notice 2020-23
Carefully review Notice 2020-23 for the full scope of filing relief granted by the IRS in response to hardships caused by the coronavirus pandemic.
IRS provides temporary relief from audit and collection activities
The People First Initiative provides taxpayers relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.
Taxpayer’s failure to report foreign accounts was willful
Willful FBAR penalties upheld because taxpayer exhibited willful blindness of or recklessly violated the FBAR reporting requirements.
Foreign trust reporting: Beware of late-filing penalties
Late-filing penalties for foreign trust filings can be devastating to clients and a significant challenge to CPAs trying to explain or eliminate them.
District Court lowers penalties for Form 3520 nonfiling to zero
The ruling provides guidance by a federal district court on the application of the civil penalties for unfiled Forms 3520 for foreign trusts.
IRS waives failure-to-deposit penalties during pandemic
The IRS is permitting eligible employers who pay qualifying wages to retain an amount of the payroll taxes equal to the amount of qualifying wages that they paid, rather than deposit them with the IRS.
IRS penalty relief available when approvals not timely
Tax Court decisions address the proof the IRS must provide to show proper supervisory approval was obtained to assert penalties.
Bounced check is not a payment
The IRS can apply levy proceeds to liabilities for any tax year covered by the levy.
Foreign gifts: A common example of undisclosed foreign transactions
Here’s what may happen when a foreign gift has not been disclosed.
Tax Court tackles supervisory approval of penalties
In three cases, the Tax Court addressed issues regarding the approval of penalties required by Sec. 6751(b)(1).
Centralized partnership audit regime: Appeals procedures
The IRS published two memoranda that clarify how it will implement the BBA procedures, including appeal rights.
