Taxpayers Win But the Court Denies Their Request for Attorney Fees and Costs... [ read ]
In a recent blog post I discussed a case where a taxpayer was in a dispute with the IRS, made a qualified settlement offer of $1 to the IRS, won the case and collected attorney fees and costs from the IRS under IRC Section 7430. In a more recent case, the taxpayers did not make a qualified settlement offer, won their case and were denied attorney fees and costs.
Private Aircraft Audits May Be At Cruising Altitude... [ read ]
Earlier this year, the IRS announced that it would be increasing the audit rate on private aircraft. The IRS previewed that there would be dozens of private aircraft audits starting in the near future. Given what we have seen, the "dozens" figure appears low.
Collecting Attorney's Fees and Expenses From the IRS... [ read ]
We previously discussed making a qualified settlement offer pursuant to I.R.C. Section 7430 to put pressure on the IRS and potentially collect attorneys' fees and costs. How much does that offer need to be? In Mann Construction Inc. v. United States, (E.D. Mich. 1/1/24), a district court said the offer can be as little as $1 for a prevailing taxpayer to collect attorneys' fees and expenses.
IRS Abandons Automatic Assessment of Foreign Gift Penalties... [ read ]
The IRS has renounced its membership to the Green Day band fan club and finally restored due process in its procedures for assessing foreign gift tax return penalties. IRS Commissioner Danny Werfel publicly announced yesterday that the IRS will no longer automatically impose penalties for late-filed forms related to foreign gifts.
IRS Launches New Exam Unit Dedicated to Increasing Audits of Pass-Through Entities... [ read ]
I always enjoy life-imitating-art moments, especially when a 1970s Saturday morning cartoon is involved. Yesterday the IRS launched a new initiative: A Wonder-Twin-esque collaboration between small and large business divisions of IRS Exam specifically devoted to ensuring compliance of pass-throughs of every size and form—including partnerships, S-corporations and trusts. Unlike the Wonder Twins, the IRS' goal is not an octopus riding an ice unicycle, but rather, "to reverse historically low audit rates" for pass-through entities.
Cryptocurrency Staking Clarity on the Horizon? If At First You Don't Succeed…... [ read ]
In February 2022, I wrote about the cryptocurrency staking case, Jarrett v. United States. At issue in Jarrett was whether particular cryptocurrency tokens (Tezos) created through staking should be considered taxable income. The taxpayers said the newly-created tokens were not taxable income, but the government took the opposite view
IRS Announces More ERC Refunds, But Should Taxpayers Cash the Checks?... [ read ]
Yesterday the IRS announced the processing of 400,000 ERC claims, with the vast majority being approved and totaling $10 billion. The question is: should taxpayers cash the check or assess their options?
ERC Update: More Time For Appeals to be Filed... [ read ]
On September 19, 2024, the IRS published a page to its website with new and potentially helpful information about Employee Retention Credit (ERC) denial letters.
The IRS Has Changed the Rules for a Voluntary Disclosure. Will Anyone File One?... [ read ]
Starting in 2009, the IRS Offshore Voluntary Disclosure Program started changing how a voluntary disclosure is made, and more recent changes are threatening to kill the practice of voluntary disclosures.
Appeals Court Rules: IRS Must Follow the Constitution Regarding FBAR Penalties... [ read ]
The Eighth Amendment of the U.S. Constitution provides that excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted. The IRS has for many years calculated penalties related to foreign bank and financial accounts that many rational thinkers would view as excessive. Yet, courts have generally not ruled that the IRS's FBAR penalties violated the Eight Amendment's Excessive Fines Clause. No more.
