IRS Not Limited in Collecting Restitution Assessments

The IRS is authorized to assess criminal restitution for certain tax crimes. This process allows the IRS to collect the criminal restitution as if it was a tax. The law authorizing these collections is relatively new and evolving. The recent Carpenter v. United States, 152 T.C. 12, case highlights why it is important for those…Continue readingIRS Not Limited in Collecting Restitution Assessments

IRS Can Collect Father’s Tax Restitution from Son

The rules that allow the IRS to assess and collect criminal restitution as if it is a tax due present some unique questions.  In Bontrager v. Commissioner, 151 T.C. 12, the court considered whether the IRS can assess and collect a father’s tax restitution payment as tax restitution against the son.   Facts & Procedural History…Continue readingIRS Can Collect Father’s Tax Restitution from Son

No Interest & Penalties on Restitution Assessments

The IRS can assess criminal restitution as if it is a tax tax. But can it assess interest and penalties on the restitution as it would a tax? The IRS policy is to do just that. The court addressed this in Klein v. Commissioner, 149 T.C. 341 (2017), concluding that the IRS policy violates the…Continue readingNo Interest & Penalties on Restitution Assessments

Civil Restitution Tax Assessment Satisfied by Criminal Restitution Payment

According to the IRS’ tax attorneys, the “The court misconstrued the facts of the case.” That is the conclusion reached by the IRS Office of Chief Counsel in Chief Counsel Notice 2007-008. The case that the IRS attorney refers to is Creel v. Commissioner, 419 F.3d 1135 (2005). The Creel Case In the Creel case…Continue readingCivil Restitution Tax Assessment Satisfied by Criminal Restitution Payment