The Grand Jury Wants to Hear From You—Here's What That Means... [ read ]
For many professionals, the receipt of a federal grand jury subpoena may be the person's first encounter with the federal government. If you've received a federal grand jury subpoena, take a breath—but don't dismiss it. These subpoenas are not ordinary. Indeed, the service of a federal grand jury subpoena typically means the federal government—in many instances, the United States Department of Justice—is investigating a potential crime for which the recipient of the subpoena may have relevant information. Whether the federal government sees the recipient as a witness or a potential subject or target of that investigation, the recipient's response—or lack thereof—can significantly influence the government's next move.
Administrative Prerequisites to Suit in Federal Tax Refund Litigation... [ read ]
This is the second in a series of refund litigation blog posts. In this post, I focus on requirements that must be satisfied before a taxpayer can file a refund lawsuit.
A Texas Contractor's Key Issue: Is it an Improvement to Real Property or Not?... [ read ]
One of the most important questions a taxpayer must necessarily ask itself when performing work on real property is whether the work is an improvement to real property. The rules that apply to real property improvements for Texas tax purposes can differ significantly from those that apply to other transactions. As in many areas, getting this wrong can create significant exposure to liability.
Claiming Dormant Tax Refunds Through Section 1311... [ read ]
Taxpayers should try to claim tax refunds within the statute of limitations. Sometimes they can't. Taxpayers under audit, for instance, might have a contingent claim that won't be ripe until the audit concludes. In these situations, a seasoned tax advisor will likely recommend submitting a protective claim for refund, safeguarding the statute of limitations. But if it is too late to file a protective claim, there are still avenues for taxpayers to claim a refund.
An Introduction to Tax Refund Litigation... [ read ]
When a federal tax issue is not able to be resolved with the IRS, a taxpayer may choose to pursue that issue in court. The vast majority of tax cases are pursued in the United States Tax Court ("Tax Court"). Other tax cases are pursued in federal district court or the Court of Federal Claims, including international penalty litigation and tax refund litigation. This blog and more will follow in the coming weeks as part of a blog series focusing on tax refund litigation.
The Texas Supreme Court Denies Government Exemption to Independent Contractor but Finds "Oddity" in Texas Comptroller Rule... [ read ]
In a recently issued decision, the Texas Supreme Court provided a holding on two important matters applicable to exemptions from tax. See GEO Grp., Inc. v. Hegar, No. 23-0149, 2025 WL 852414 (Tex. Mar. 14, 2025).
IRS Confirms Some Internet Theft Losses Are Permitted Post-TCJA But Risks Remain... [ read ]
Fraud and theft continue to rise in the United States. According to a recent FTC report, Americans lost more than $12.5 billion from fraud in 2024 (an increase of 25% from the prior year). The FBI confirmed the upward trend in early 2024, noting "an alarming increase[ ] in both the frequency and financial impact of online fraud perpetrated by cybercriminals."
Who is Subject to the Texas Sales and Use Tax Contractor Rules and Why Does it Matter?... [ read ]
Taxpayers are often surprised to learn they may be subject to the "contractor" rules for Texas sale and use tax purposes and sometimes learn of this only after hearing from a Texas Comptroller auditor. Before one can consider the implications of the "contractor" rules in Texas, which can be technical and complex, one must necessarily understand who is subject to those rules.
IRS Chief Counsel Finds Foot Fault on BBA Statute of Limitations... [ read ]
In tax controversy and litigation matters, sometimes procedure trumps the merits of a case. The statute of limitations is a great example. Even if the taxpayer made a mistake on a prior year return, the IRS generally can't open an audit if the applicable statute of limitations period has expired. The Bipartisan Budget Act of 2015 (BBA) has its own statute of limitations rules associated with partnerships.
Texas Contractors Beware of the Unforeseen Texas Sales and Use Tax... [ read ]
We often find ourselves advising clients that Texas tax auditors and investigators are not their friends. Taxpayers can sometimes be lured into a false sense of confidence with a "friendly" auditor – that is, until they receive a large tax assessment. Tax auditors are hired for one reason and one reason only, and that is to find money. As such, they are not disinterested parties when it comes to auditing or investigating taxpayers.
