Imagine that you earned significant income and failed to file tax returns. You later file the tax returns once the IRS caught on to you, but you omitted a large part of your income. The government indicts you on criminal tax evasion charges, and starts an IRS audit. Before the criminal trial, the IRS audit…
Tax Articles
How Wrong Does the IRS Have to be to Be Liable for Attorneys Fees?
In most civil litigation cases, the parties are not entitled to an award of attorneys fees. The exceptions are generally when there is a contract that provides for attorneys fees or there is a statute. This can be problematic in litigation cases–particularly where one party brings or defends a friviolous suit just to drive up…
Do You Report Stock an Employer Mistakenly Gave You to the IRS?
When your employer deposits 100,000 shares of stock into your brokerage account after you’ve left the company, and you believe it was done in error, do you have taxable income? And what do you do in this case? If the amount is taxable to you as compensation, then when do you report it? Should you…
Is a Taxpayer Accountable for their Tax Preparer’s Fraud?
Most taxpayers opt to hire professionals to prepare their tax returns. Tax professionals understand the complexities of deductions, credits, and reporting requirements that can overwhelm even sophisticated business owners and investors. Once the tax returns are filed and a few years pass without incident, most taxpayers reasonably assume those tax years are closed forever. But…
What Makes a Partnership Transaction a Disguised Sale?
You own a depreciated asset or an asset that has gone down in value. It happens. But say you cannot take advantage of the tax loss for some reason. Maybe it is because you don’t have other Income triggering a tax that year or maybe there is a limitation on the use of the loss…
Can the IRS Disclosure Your Tax Info in Cases Agains Other Taxpayers?
You cooperate with an IRS audit. You provide detailed financial records. You answer questions about your business. Years later, you discover the IRS is using your information in cases against other taxpayers. The IRS is sharing details about your business location, your EIN, even the fact you’re under investigation for a tax promoter penalty. Is…
Does DOJ Referral Strip IRS of Power to Process Refund Claim?
You think the IRS owes you a refund. You file a refund claim. The IRS eventually processes your refund, but does not issue checks to refund the money to you. You later find out that the IRS had referred the matter to the Department of Justice–maybe you find out years later even. Can the simple…
When Can the IRS Levy Church Assets as “Nominee” Property?
Religious organizations and churches often own property and bank accounts that support their mission and operations. Sometimes, these assets are also used to benefit the organization’s leaders personally. This begs the question, can the IRS collect on the religious organization or church’s assets for the individuals tax debt? Can the IRS use the “nominee” rules…
Captive Insurance Tax Deductions Denied, No Risk Distribution
Insurance premiums go up and then they go up some more. The amounts can be substantial. This is particularly true for businesses that offer insurance to employees or that insure more types of risks. And many business owners note that while they pay substantial insurance premiums, the insurance companies often do not have high payouts.…
Court Limits Equitable Tolling For Late Tax Court Petitions
We live in a fast-paced world where technology has made it possible to do more, see more, and accomplish everything else more efficiently. While some routines of life have not changed, most have been transformed by our increasingly connected environment. For better or worse, one thing that has not changed is the concept of deadlines,…