Categories
Federal Income Tax

IRS Clarifies Real Estate Broker Filing Requirement – Again

The IRS has released Revenue Procedure 2007-12, which clarifies what “assurances” real estate brokers must obtain from persons who sell their principal residence. Real estate brokers are generally required to provide a Form 1099-S to a person selling or exchanging real estate. This form helps the IRS track the seller’s proceeds from the sale, to […]

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Tax Litigation Tax Procedure

Tax Court Judge Can Rewrite Facts of Case That He/She Did Not Hear

The tax court released a 400+ page opinion involving the Supreme Court’s ruling in the Ballard v. Commissioner case today.  This case continues the Ballard dispute saga that casts a shadow on whether the U.S. Tax Court is an impartial judicial forum. The Ballard Dispute The readers of this blog will recall the Ballard case […]

Categories
Federal Income Tax Retirement Accounts Tax

Tax Free IRA Rollovers as Short-Term Loans: Two Examples of What Not to Do

Taxpayers often withdraw funds from their IRAs to cover short-term expenses with the hope that they can put the funds back in their IRA within the 60 day window for making a tax-free IRA rollover. When taxpayers miss this 60 day window, they are forced to ask the IRS to waive the 60 day time […]

Categories
Tax Crimes Tax Procedure

Tax Attorney Gets Taxpayer Favorable Sentence, Court Says Not So Fast

Tax fraud often results in harsh criminal tax penalties; however, you really never know what a particular tax crime sentence will be until you have your day in court, then the appeals for that sentence, and then possibly the appeals for those appeals. Take for example the case of United States v. Trupin. According to […]

Categories
Federal Income Tax International Tax Tax

What is a “Foreign Country” for Income Tax Purposes?

Our tax laws allow individual taxpayers to exclude income earned in certain foreign countries.  This begs the question as to whether a taxpayer working outside of the U.S. is in a foreign country if he is working in an area that is not governed by the equivalent of what we think of as a government.  […]

Categories
Tax Litigation Tax Procedure

U.S. Tax Court Petition Date is Absolute

Some dates are absolute. You miss them, you are out of luck. The deadline for filing a petition with the U.S. Tax Court is one of these dates. Today’s Austin v. Commissioner, T.C. Memo. 2007-11, case provides an example. Facts & Procedural History Austin failed to timely file federal tax returns. The IRS imposed failure […]

Categories
Tax Procedure Tax Returns

Prisoners Filing False Tax Returns

There are serious consequences for filing false tax returns.  This can include civil and criminal penalties.  These penalties may not be all that effective of a deterrent for someone who is currently incarcerated, which is evidenced by cases like United States v. Wardell, 05-1492 (10th Cir. 2007). Facts & Procedural History Wardell is a prisoner incarcerated […]