Automatic Estate Closing Letters No More: The IRS Changes its Procedures for Closing Estates... [ read ]
Closing letters are an important part of estate tax administration and provide great comfort to executors waiting to distribute assets to beneficiaries. To the dismay of many tax professionals, the IRS earlier this year announced that it would no longer automatically send out closing letters to signal the completion of an estate tax audit.
Think the IRS Can't Audit You After 3 Years? Think Again.... [ read ]
There is perhaps no worse a feeling to taxpayers than when they receive an IRS notice indicating their return has been selected for examination. Thankfully, Congress has placed substantial limitations on the IRS' ability to examine returns and assess additional tax: a 3-year statute of limitations period. Under the general statute of limitations period, the IRS has three years after the return is filed to assess any additional tax. See I.R.C. § 6501(a).
Federal Agent Steals Virtual Currency and Receives Real World Prison Sentence... [ read ]
On October 19, 2015, a former Drug Enforcement Agent, Carl Force, was sentenced to 78 months in prison for stealing bitcoin related to the federal criminal investigation of Silk Road.
New DOJ Policy Regarding Individual Accountability for Corporate Wrong Doing... [ read ]
On September 9th the Department of Justice (DOJ) issued new guidance to its prosecutors aimed at encouraging more white collar criminal and civil cases against corporate executives. The new rules take effect immediately, but they are not likely to apply to investigations that are far along.
The OECD's BEPS Initiative and International Tax Reform... [ read ]
The Organization for Economic Cooperation and Development's (OECD) Base Erosion and Profit Shifting (BEPS) initiative is headed for the home stretch. Whether it will cross the finish line, however, remains to be seen.
IRS Announces it Has Raised $8 Billion Through its Offshore Remediation Programs While Conducting Thousands of Civil Offshore Exams and Numerous Criminal Offshore Investigations... [ read ]
On Oct. 16, 2015, the IRS announced that its offshore compliance programs have generated $8 Billion in IR-2015-116. More than 54,000 taxpayers have participated in IRS offshore remediation disclosure programs since 2009. The IRS warned taxpayers with non-compliant offshore accounts to "strongly consider existing paths established to come into full compliance with their federal tax obligations."
Using a Qualified Amended Return to Avoid the Accuracy-Related Penalty... [ read ]
When a taxpayer or tax professional discovers an error on a previously filed tax return, the taxpayer usually asks whether and how the error should be corrected. While there is nothing in the Internal Revenue Code or Regulations requiring a taxpayer to amend a tax return, CPAs and other tax professionals have a duty under Circular 230 and ethical rules to advise a taxpayer that an amended tax return should be filed and that failure to do so could result in imposition of penalties. If a taxpayer chooses not to file an amended return, he or she could be subject to an accuracy-related penalty pursuant to IRC Section 6662.
Are Tax Returns Given to an IRS Agent Considered Filed?... [ read ]
In the typical IRS delinquent tax return examination, the IRS agent will ask that the original delinquent returns be delivered to him or her for filing. Because providing tax returns and other information, such as refund claims, is not considered filing, I will usually file the returns with the IRS Service Center, and provide a copy to the agent with proof of filing. By doing so, I know that a tax return or refund claim has been properly and promptly.
Tax Sale of Real Property: The Rights and Interests of the Taxpayer and the Purchaser... [ read ]
If you listen to the radio or watch late night TV, you know that the IRS has considerable powers when it comes to collecting unpaid taxes, penalties and interest. Included in these powers is the right to seize and sell real property in which a delinquent taxpayer has an interest, although there are some limits on what real property can be seized and sold by the IRS.
Section 9100 Relief: A Second Bite at the Apple... [ read ]
In my career, I have received calls from panicked tax professionals who have discovered that they have inadvertently missed a tax election and don't know what to do. When I receive such a call, I tell the caller two things. First, I tell the tax professional to contact his or her malpractice carrier. Second, I tell the caller that there may be a solution, Reg. Sections 301.9100-1 thru 3, which contain rules for allowing for extensions of time for late tax elections. Depending on the circumstances, Section 9100 relief may be automatic or non-automatic.
