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Federal Income Tax

Estate & Trust Attorneys Will Increasingly be Subject to Malpractice Actions Brought by Beneficiaries

It is now well established that a plaintiff s attorney should be subject to malpractice liability for not proposing a structured settlement annuity versus a lump sum payment to their injured clients and for not seeking the advice and assistance of a competent financial adviser in the process. The principles underlying this type of malpractice […]

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IRS Penalties Tax Procedure Trust Fund Penalties

Better than a Soap Opera? Trust Fund Tax Disputes

Businesses often succumb to the temptation to use taxes withheld from employees wages to manage cash flow problems. These “government loans” can prove to be quite costly. Hart v. Commissioner, 19120-12 provides an example. Facts & Procedural History The taxpayer worked for a real estate firm. The firm did not pay its payroll taxes. The […]

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Federal Income Tax

Taxpayer: It’s All About Valuation; IRS: We’re Damned if We Do

Many tax practitioners agree that valuing property for tax purposes is the most important issue that they face. Yet valuation issues are often murky and amorphous. In most cases valuation disputes are resolved in favor of the party that has the most convincing valuation expert. In other cases valuation disputes are resolved on even less […]

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Tax Crimes Tax Procedure

Evidence That Can be Considered When Applying the Federal Sentencing Guidelines

The federal criminal sentecing guidelines use a point system. Points or levels are assigned to characteristics of individual crimes and individual criminal offenders. The higher the points or levels the higher the sentence imposed. The system is intended to produce uniform and rational criminal sentences. This policy could be undermined by a limitation in the […]

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IRS Debts Offer in Compromise Tax Procedure

Congress Proposes Changes to the IRS Offer in Compromise Program

The Offer in Compromise (OIC) has proven to be an invaluable tool for taxpayers to resolve tax disputes with the IRS. OICs have allowed taxpayers to come into compliance with our tax laws and they have also allowed the government to collect tax liabilities that would otherwise go uncollected. Yet, Congress has taken a notion […]

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State & Local Tax Tax

Lessons Learned from Colorado’s Taxpayer Bill of Rights

Taxpayers’ Bills of Rights (TABORs) prevent state governments from increasing taxes or spending revenue growth without first obtaining voter approval. Several states are poised to adopt state TABORs in the near future. The State of Colorado adopted a TABOR in 1992. There are a number of lessons that other states can learn from Colorado’s TABOR […]

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IRS Debts Offer in Compromise Tax Procedure

The Three Offer in Compromise Options

The IRS offer in compromise program is one avenue for settling tax debts for less than the amount owed. There are three different types of offers that can be submitted under this program. The court in Eberhardt v. Commissioner, T.C. Summary 2004-147, addressed each one. The case provides a good overview of how the IRS […]