Categories
Federal Income Tax

Tax Law is Not Determined by Common Industry Term

Just because businesses in a particular industry commonly use a term to describe a particular transaction or event, the industry term does not necessarily have any bearing on the Federal income tax consequences of the transaction or event. The court addresses this in Greenteam Materials Recovery Facility PN v. Commissioner, T.C. Memo. 2017-122, in the […]

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Tax Litigation Tax Procedure

IRS Can Raise New Issues on the Eve of Trial

The ability to have ones day in court is fundamental to our system of justice. For claims involving the government, as with taxes and the IRS, this includes the right to know the government’s position with sufficient advance notice so that the taxpayer can prepare their case. This begs the question, can the IRS raise […]

Categories
IRS Audits Tax Procedure

Where Did the Tax Protesters Go?

It has almost been twenty years since Congress enacted the Revenue Restructuring Act of 1998 (“RRA98”). RRA98 prohibits the IRS from designating taxpayers as “tax protesters.” What is a Tax Protester? A tax protester is someone who uses illegal methods to protest the tax laws. This often includes Constitutional and other arguments about the taxpayer […]

Categories
IRS Audits Tax Procedure

Doctrine of Substantial Compliance

Taxpayers often ask the government and the courts to overlook failure to comply with legal technicalities by making doctrine of substantial compliance arguments. What Is The Doctrine Of Substantial Compliance ? The doctrine of substantial compliance is a legal theory that essentially says that one party should not forfeit his or her rights if he […]

Categories
Federal Income Tax

Taxation of Employee Donated Sick Leave

Employees often want to donate paid sick-leave time to deserving co-workers who find themselves in a pinch. The IRS recently released another ruling, PLR 200720017, that identifies a few of the planning considerations in donating sick-leave to co-workers. The federal tax consequences of donating paid sick-leave depends on whether the donation is made through the […]

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IRS Debts Tax Procedure

City of Chicago Takes Church Property For Un-Owed Taxes

The recent Beth-El All Nations Church case shows just how far state and local tax collectors will go to collect taxes – even when the taxes are not owed. Facts set out by the court: An employee of the City of Chicago mistakenly addressed a notice to Beth-El All Nations Church at 1534 East 63rd […]

Categories
Tax Litigation Tax Procedure

Two Taxpayers Commit Tax Fraud: Should They Get Separate Trials?

While a taxpayer who commits tax fraud is entitled to a hearing, in United States v. Robbins the question is whether the taxpayer is entitled to a separate hearing. Lee Robbins founded Robbins & Associates, which was a bookkeeping and tax return preparation business located in Georgia and Oklahoma. Robbins recruited, hired, and trained Gabriel […]