Categories
IRS Penalties Reportable Transactions Tax Procedure

Timing for Written IRS Manager Approval for Penalties

The courts recently held that penalties have to be abated if the IRS does not obtain written manager approval for the penalties. The IRS has been abating penalties for this since the ruling. But there is a question as to when does the IRS have to obtain manager approval? Is it sufficient that the IRS […]

Categories
IRS Penalties Reportable Transactions Tax Procedure

Computing the Reportable Transaction Penalty

The Section 6707A reportable transaction penalty can be difficult to work with given the more limited avenues for contesting the penalty. The court addressed this in Bitter v. Commissioner, T.C. Memo. 2017-46, in the context of a Section 412(i) plan. Tax advisors have been waiting for an answer to the very question about how to […]

Categories
IRS Penalties Reportable Transactions Tax Procedure

Reportable Transaction Penalty, Full Payment Required

Tax matters can be litigated in a number of different courts. One of the advantages of bringing suit in U.S. Tax Court is that the tax does not have to be paid prior to bringing suit. For tax matters litigated in the U.S. District Courts or the Court of Federal Claims, the tax has to […]