Categories
IRS Penalties Tax Procedure Trust Fund Penalties

Fixing Trust Fund Recovery Penalties

The public may not be fully cognizant of this, but, the IRS is in the business of processing information and making decisions. It accomplishes this by siloing work on tax returns and accounts. The siloed work is intended to allow the IRS to process and make consistent decisions based on a very large volume of […]

Categories
IRS Audits Partnership Tax Tax Tax Procedure

Electing Out of the Partnership Audit Regime

When it comes to income taxes and IRS audits, there are a lot of procedural rules that are counter-intuitive. Even if one thinks they are half-baked, the rules are the rules. They can have serious consequences. The centralized partnership audit regime is an example. Tax advisors often instruct their clients to elect out of the […]

Categories
Bankruptcy Tax IRS Debts Tax Tax Procedure

IRS Audits for Insolvent Taxpayers

When times are good, we don’t need to worry about the tax loss rules, the net operating loss (“NOL”) rules, or even the bankruptcy tax rules. But these rules are front and center in most tax planning and advice during and after an economic downturn. We saw this with the 2001 dot com bust, the […]

Categories
IRS Debts Tax Procedure

Taxes & Defunct Texas Corporations

Our Federal tax laws often look to state law. Differences in state law can expand or limit the IRS’s ability to assess and collect Federal taxes. In Patrick’s Payroll Services, Inc. v. Commissioner, T.C. Memo. 2020-47, the court considers whether a defunct Michigan corporation can bring suit against the IRS. This case provides an opportunity […]

Categories
Tax Procedure Whistleblower Claims

Whistleblower Claim Limited by Sequestration

We help claimants submit whistleblower claims. But when we receive calls asking for help with whistleblower claims, we do everything we can to dissuade the callers from submitting claims. The IRS’s whistleblower program has been plagued by mismanagement. Cases have long been mishandled by the IRS. Legitimate awards denied. Claimants have to be prepared to […]

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 […]