Court Upholds FBAR Penalties, but Rejects Government's Assessed Interest and Late Charges... [ read ]
In Moore v. U.S., No. C13-2063 (W.D. Wash. July 24, 2015), Judge Richard Jones examined a case in which FBAR penalties of $10,000 were assessed for each year from 2005 through 2008. The Court held the IRS's decision to assess the FBAR penalties was not arbitrary, capricious or an abuse of discretion.
A Look Back at More than a Century: The Federal Income Tax... [ read ]
Every April, millions of Americans brave the spring ritual of filing an income tax return. In the rush to complete their returns (and, if they are lucky, claim a refund), most give little thought to the fascinating origin and history of the tax that will celebrate its 102nd birthday this October. Our modern federal income tax represents a defining marker in our nation's history and character, with foundational - and, some might say, uniquely American - economic theory. A tax with Civil War origins, it played a key role in the course of American class politics, evolving from a limited-scope "class tax" to the "mass tax" that became the backbone of our federal system.
This article was originally published in Today's CPA, July/August 2015 (a publication of the Texas Society of CPAs).
No Fifth Amendment Protection for Foreign Account Records, Government Prevails in the Third Circuit... [ read ]
On July 17th, a panel for the U.S. Court of Appeals for the Third Circuit held there is no Fifth Amendment protection for foreign bank account records. U.S. v. Chabot, No. 14-4465 (3d Cir. July 17, 2015).
Offshore Voluntary Disclosures: The IRS Continues to Add New Foreign Banks to the "Bad" Bank List... [ read ]
The IRS continues to add to its list of "bad" banks, having added eight banks since June and counting. Taxpayers with undisclosed accounts at foreign banks on the list face a heightened 50-percent penalty under the IRS's Offshore Voluntary Disclosure Program.
Combating the Growing Problem of Tax Fraud and Identity Theft... [ read ]
Identity theft in which a taxpayer's name and tax identification number are stolen and used in order to obtain fraudulent refunds continues to be a growing problem for the IRS and the victim taxpayers.
Is Time Running Out on Discounts on Transfers of Family Entity Interests? Now May Be The Time to Act.... [ read ]
The IRS may be close to issuing new regulations on valuation that could significantly increase transfer tax costs. As a result, it is prudent for families who are contemplating gifts of family entity and limited partnership interests to make the gifts now, while the valuation discounts are still available.
The U.S. Department of Labor's Proposed Fiduciary Standard Rule... [ read ]
The U.S. Department of Labor is considering a rule under the Employee Retirement Income Security Act of 1974 (ERISA) that would, in a nutshell, assign "fiduciary status" to those who provide financial advice about employee retirement – for example advice about your 401(k) account.
The IRS Voluntary Disclosure Program... [ read ]
The federal tax system is a voluntary system that relies on taxpayers to file complete and accurate tax returns. However, the IRS released a study reporting that individuals and businesses underpay their taxes by an estimated 17% each year, resulting in almost $450 billion of lost tax revenues each year.
Tax Court Holds that Owner of Variable Life Insurance Policy is Taxable on ‘Inside Buildup' based on Investor Control... [ read ]
In the first judicial decision on investor control in thirty years, the IRS scores a landmark victory that poses a material threat to owners of variable life insurance policies and the perceived tax deferral benefits of such policies.
Supreme Court Rules in Favor of the Affordable Care Act (Again)... [ read ]
On June 25, 2015, the Supreme Court ruled that the Affordable Care Act ("ACA") individual tax credit, codified in Code § 36B, extends to those who purchase coverage on the Federal exchange as well as those who purchase coverage on a state exchange. The plain language of Code § 36B provides a tax credit to middle- and low- income taxpayers who purchase insurance through "an exchange established by the state." However, the IRS' regulations under § 36B extended the tax credit to taxpayers who purchase coverage through a state or Federal exchange.
