Tax Returns Archives

Signature Not Required on Tax Return for Criminal Liability

One of the requirements for a document to be a tax return is that it is signed by the taxpayer under penalties of perjury. Most tax forms that are intended to be tax returns include a declaration at the bottom that includes the penalty of perjury language. But most tax returns today are filed electronically.…

Can You File a Zero-Income Tax Return if You Do Not Owe Any Tax?

If you do not owe any tax for a year and you are certain of it, can you just file an income tax return that reports all zeros for income and lists the amount you paid to the IRS that you want refunded? I’ll refer to this as a “zero income-tax return.” This is a…

When the IRS Fails to Timely Respond: Who Pays?

The IRS, like many organizations, faced significant challenges during the COVID-19 pandemic. It had to adapt to new working conditions, which led to delays in processing paperwork, including tax returns, and difficulties in responding to taxpayer inquiries. During this time, when a taxpayer could reach someone at the IRS, they were often told that due…

When Can Your Tax Preparer’s Fraud Leave You on the Hook?

Say you hire a tax return preparer and get your tax returns filed, and think that everything is fine. Then years later, say more than a decade later, the IRS shows up and asserts that your tax returns were fraudulent. You did not commit fraud and this is news to you, but the IRS asserts…

When is a Tax Return Not a Tax Return?

The tax code commands the IRS to assess the tax reported to the IRS by a taxpayer on a non-fraudulent tax return. The provision is not optional for the IRS. It is mandatory. However, the tax law does not define what is fraudulent or what counts as a tax return. This begs the question as…

The Tax System as “a Game of Monopoly”

If you are a small business owner or an individual who works or even claimed a deduction for a child on your tax return, the IRS may go to great lengths to scrutinize your tax filings. This is particularly true if you are successful and earn any income. The more successful you are, the more…

Recovering Taxes Paid for Another Party

If you pay tax for another party, can you recover the payment if the tax is not owed? The answer is generally “no,” as you cannot sue the Federal government unless it consents and it only consents in limited circumstances. One such consent is the ability to sue for a refund. The rules that allow…

Can a Tax Attorney Sign a Form 843?

Taxpayers may find it challenging to obtain a refund from the government, as the courts and Congress have imposed stringent requirements on the refund claims filed by taxpayers. Even minor procedural errors can be detrimental to the claim, resulting in the government gaining an unwarranted windfall. The recent case of Vensure HR, Inc. v. United…

Late-Filed Tax Returns & Excess Collections

Life happens. We all experience it. There are times when life events can result in tax returns being filed late. Our tax laws offer little in way of leniency when this happens. The IRS will assess late filing penalties. Worse yet, amounts that were already timely paid to the IRS may not be refunded to…

Adjustments Stemming from IRS Settlements

Generally, when it comes to civil matters, state and Federal law includes various “statutes of limitations” and “discovery rules.” The statute of limitations rules say that a claim has to be filed within a certain time period. The discovery rules say that the time period for the statute starts to run when the claim is…