Offer in compromise not deemed accepted
An offer in compromise submitted during a Collection Due Process proceeding is not deemed accepted under Sec. 7122(f) if it is returned to the taxpayer within 24 months of submission.
Collections, Liens & Levies
No relief for trust fund recovery penalty
A TFRP liability is not eligible for Sec. 6015 innocent-spouse relief because it is not a liability related to a joint return.
IRS may enforce lien to pay off deceased life partner’s tax debts
Property of a taxpayer may be used to satisfy the tax liabilities of a life partner.
Interest claim limitation periods, including for ‘net rate’ netting claims
This item focuses on interest netting between different tax periods and/or types of tax (“net rate” netting claims).
Passport revocation as a collection tool
Taxpayers can lose their US passports over unpaid tax debts meeting certain criteria, and courts have only limited jurisdiction to review a certification or remedy it.
IRS voice bots help set up payment plans
The IRS deploys more AI-powered phone abilities, enabling taxpayers calling the Service to authenticate their identifies and arrange to pay tax liabilities.
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.
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.
