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Tax Procedure Tax Returns

Applying Tax Overpayments to Later Years is Usually a Bad Idea

Instead of requesting a refund, taxpayers can ask the IRS to hold the overpayment and apply it to the taxpayer’s tax liability for the following year. These tax payment credits can result in significant headaches. The recent Schuster v. Commissioner, No. 17-11647 (11th Cir. 2018) case provides an example of why taxpayers should request refunds […]

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Tax Procedure Tax Returns

Some Filing Deadlines are Strict, Others are Not

When it comes to fixing tax problems, procedural footfaults can make solving the problem even more difficult. Filing deadlines are an example. The Duggan v. Commissioner, No. 15-73819 (9th Cir. 2018), case provides an example. Facts & Procedural History In Duggan, the taxpayer was contesting the IRS’s decision to proceed with collections. He requested a […]

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Tax Procedure Tax Returns

Is the IRS Bound by It’s Letters and Notices?

If the IRS sends a taxpayer a letter saying that it will process their refund claim but then it fails to do so, is the IRS bound by its letter? The court recently addressed this in Hawver v. Commissioner, T.C. Memo. 2017-244. The Facts & Procedural History The taxpayer filed his 2005 tax return in […]

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Tax Procedure Tax Returns

Amending Tax Returns for FTC and NOL Carrybacks

The time limits for filing amended tax returns can present a number of difficult questions.  This is particularly true when tax attributes, such as foreign tax credits and net operating loss deductions, are carried back to prior years.  The carryback to one prior year can result in carrybacks to one or more years prior to […]

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Tax Procedure Tax Returns

The Form 1045 Dispute & Possible Solution: Include a Detailed Cover Letter

The Form 1045, Application for Tentative Refund, is used to carryback losses, credits, etc. from the current year to prior years. In many cases it is used when a taxpayer was previously profitable and then incurrs a loss. The now unprofitable business can go back and recoup taxes paid in prior years and get a […]

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IRS Penalties Tax Procedure Tax Returns

Do You Have to Use the IRS’s Official Forms?

Do taxpayers have to use the official forms published by the IRS?  In May v. United States, No. 15-16599 (9th Cir. 2017), the court considered whether a taxpayer is subject to the listed transaction penalty if he fails to file the IRS’s reportable transaction form, but the IRS is otherwise furnished with all of the information […]

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Tax Procedure Tax Returns

Duty of Consistency Applies to Different Types of Tax Returns

Taxpayers have to report tax positions consistently from year to year.  They cannot get a tax benefit from taking inconsistent positions.  The duty of consistency doctrine provides for this.  But does this doctrine require items to be reported consistently on different types of tax returns?  The court addressed this in Musa v. Commissioner, No. 16-1841 (7th […]