How to Prove Refund Claim Timely Filed

Proving That You Mailed A Tax Return To The Irs

The Tax Code imposes several artificial deadlines and consequences for not meeting those deadlines. Many tax deadlines are strict. The result in tax cases often come down to whether a taxpayer can prove that he met these deadlines. In Chan v. United States, No. 2:15-cv-739-DN-BCW (D. Utah 2016), the court considered whether an Adobe PDF…

Refund Claims Involving Loss Carrybacks Include Computational Adjustments in Earlier Years

Irs Tax Lien Did Not Attach To Trust Property

In Stein, LLC, v. United States, No. 2:13-03224, the United States District Court for the Western District of Louisiana addressed the question of whether refund claims stemming from loss carrybacks include computational adjustments in the carryback years. This type of issue often comes up when closing out IRS audits, which is evidenced by this case…

Who Can Sign a Form 2848 Power of Attorney for an LLC

Who Can Sign A Form 2848 Power Of Attorney For An Llc

We are often asked who can sign a POA or Form 2848, Power of Attorney and Declaration of Representative, for a limited liability company or LLC? The IRS addressed this in AM 2015-004. About Form 2848 – Power of Attorney The Form 2848 allows the IRS to disclose taxpayer information to persons who represent the…

Joint Committee Review Limit Increased to $5 Million

Joint Committee Review Limit Increased To $5 Million

The Joint Committee on Taxation or JCT is a part of the U.S. Congress. It is tasked with investigating the U.S. tax system and reporting on proposed measures and methods for the simplification of taxes. To carry out this function, the IRS is obligated to provide a report to the JCT for any refund in…

Reporting Requirements for ISOs and ESPPs

Irs Recognizes Employee Tool And Equipment Plans

The IRS has released proposed Regulations to implement the recent changes in Code Sec. 6039. These Regulations require corporations to report the transfer of stock upon the exercise of incentive stock options (ISOs) and by employee stock purchase plans (ESPPs). Pursuant to the changes in Code Sec. 6039, corporations must provide this information to the…

U.S. International Tax Withholding & Reporting (Explained)

The New Tax Return Preparer Penalty

We address quite a few international tax law questions. Many of these questions relate to U.S. withholding tax. Payments made by U.S. citizens and resident aliens (“U.S. persons”) to non-U.S. persons are typically subject to U.S. tax withholding. This can trigger U.S. tax reporting requirements. These requirements can be difficult to understand and a misstep…

Cash Payments Deposited by Salesman & the Form 8300

Cash Payments Deposited By Salesman & The Form 8300

Cash-based businesses pose a number of problems for the IRS. They may also be involved in tax fraud. The Form 8300 allows the IRS to track cash payments for this very purpose. Chief Counsel Advice Memorandum 200707001 provides an example involving cash payments deposited by a salesman for a car dealership. Facts & Procedural History…

Prisoners Filing False Tax Returns

Prisoners Filing False Tax Returns

There are serious consequences for filing false tax returns.  This can include civil and criminal penalties.  These penalties may not be all that effective of a deterrent for someone who is currently incarcerated, which is evidenced by cases like United States v. Wardell, 05-1492 (10th Cir. 2007). Facts & Procedural History Wardell is a prisoner incarcerated…