Categories
IRS Interest Tax Procedure

Using Contract Law to Avoid IRS Interest


Interest that accrues on taxes can be abated due to IRS errors or delays. The law that implements this general rule often fails to provide a meaningful remedy in most interest abatement cases. But what about contract law? Can contract law provide another means for obtaining a remedy in interest abatement cases? The court addresses […]

Categories
IRS Audits Tax Procedure

IRS Contacts With Government Agencies


The IRS considers information from third parties during audits and in collecting unpaid taxes. The IRS’s efforts to gather this information can significantly harm the taxpayer, as third parties may not want to do business with the taxpayer given the IRS inquiry. Recognizing this, Congress has imposed rules that limit the IRS’s ability to make […]

Categories
IRS Debts IRS Liens & Levies Tax Procedure

Property Rights & IRS Levies: Louisiana’s Usufruct


To determine whether the IRS can levy or take property, one has to consider what property the taxpayer owns. State law dictates what property the taxpayer owns. The property laws in most states are similar, which makes applying Federal tax collection law relatively easy. But then there is Louisiana law. Louisiana law differs in many […]

Categories
IRS Penalties Tax Procedure Tax Return Preparer Penalty

The Tax Preparer’s Right to Appeal Return Penalties


The IRS has been focusing on tax return preparer audits. The aim of these audits is to impose penalties on tax return preparers. The IRS typically provides a means for tax preparers to appeal these penalties administratively, but there are cases where it doesn’t provide this opportunity. In those cases the IRS will assess the […]

Categories
IRS Audits IRS Debts Tax Procedure

Can You Rely on IRS Statements?


If you ask someone a direct question and the person responds with incorrect information, is the person bound by their misrepresentation? This raises questions of “estoppel,” which apply to most litigants. But does it apply to IRS employees who make a misrepresentation? Put another way, can you rely on statements by IRS representatives? The court […]

Categories
Accuracy Penalties IRS Penalties Tax Procedure

Substantial Authority, When the Authority is Not Clear


What if you have a tax question and find a court case that: (1) has the same facts as your case, (2) addresses the same tax item as in your case (such as a tax deduction, credit, etc.), and (3) the court case is decided in the taxpayer’s favor, but the court case does not […]

Categories
IRS Penalties Tax Procedure Tax Return Preparer Penalty

About Tax Preparer Penalty Audits


The IRS’s power to regulate tax return preparers was limited by the Loving v. Internal Revenue Service, 742 F.3d 1013 (D.C. Cir. 2014) line of cases. These cases generally limit the IRS’s ability to regulate tax preparer conduct at an administrative level. But the IRS still has a number of tools at its disposal to […]