Court Holds that Late-Filing Penalty is Applicable to E-Filed Tax Return... [ read ]
I've previously written blog posts regarding the IRC Section 6651 failure-to-file penalty and its application to electronically filed tax returns. On October 24th, the 11th Circuit Court of Appeals issued a decision in Lee v. United States which is the first appellate-level holding that reliance on an agent, in this case a CPA, is not reasonable cause for failure to file a timely e-filed tax return.
The Form 8300 Hazards for Businesses and Practitioners... [ read ]
The IRS has recently increased their focus and examinations of businesses who deal in cash (or cash equivalents such as cashier's checks and money orders). These examinations have led to significant fines and penalties for these unsuspecting businesses. If the IRS discovers that a business is not properly reporting cash transactions on IRS Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, the associated fines and penalties can easily amount to hundreds of thousands of dollars.
More Money, More Audits: IRS Proposes Three-Fold Increase to High-Wealth Audit Group... [ read ]
More money for the IRS means more audits for those with more money. It's just that simple. Last week, Eric Cirelli of the IRS Large Business and International (LB&I) Division gave an update on the division's priorities at the UCLA Tax Controversy Institute. A seemingly-core priority is the expansion of the IRS' global high wealth group.
Too Much of a Good Thing: IRS Expects Eight (8) Billion Filings under New Digital Asset Reporting... [ read ]
The IRS is testing the limits of the law of diminishing returns with the new digital asset reporting regime, announcing that it expects to receive eight (8) billion filings per year. Yes, billion with a "B". As background, the Infrastructure Investment Act of 2021 enacted new information reporting requirements that apply to digital asset transactions. Originally set to take effect in 2024, the IRS recently issued proposed regulations that brought both interpretative guidance as well as a delayed effective date.
Problems Money Can Solve? IRS Continues to Direct IRA Funding Towards Enforcement... [ read ]
Is non-compliance a problem money can solve? The IRS seems to think so, rolling out last week yet another set of enforcement initiatives based on Inflation Reduction Act funding. Like other recent initiatives that target wealth taxpayers and complex partnerships, these latest IRS initiatives target large corporations.
IRS Provides Procedures for ERC Claim Withdrawal: Should Employers Use Them?... [ read ]
We have written numerous times about the employee retention credit (ERC): sometimes about the IRS' focus on unscrupulous refund claims, more recently about how the IRS has stopped processing new ERC claims, and steps employers may want to consider taking. Now the IRS has yet another update regarding ERC issues, most likely motivated by an IRS desire to clear its massive backlog of ERC claims waiting to be administratively processed.
Improper Art Donation Deduction Promotions: IRS Sounds Alarm... [ read ]
The IRS is warning taxpayers not to claim improper art donation deduction and provides tips to help people avoid getting ensnared by an illicit art donation promotion.
Saved by the Bell: Treasury Extends Deadline for Reporting Owners of Newly Formed Entities... [ read ]
Uncle Sam's curiosity is often insatiable. But at least he is willing to wait an additional 90 days, based on a newly proposed rule by the Treasury Department. Of course I'm talking about the new disclosure rules mandated by the 2021 Corporate Transparency Act, which require many private businesses, and virtually all small businesses, to disclose to the U.S. government the identities of their owners and other basic information about them.
Distinctions that Make a Difference: Federal Circuit Holds that Various Substance Over Form Doctrines are Not Interchangeable... [ read ]
There are various interactions of the substance over form doctrine, such as step-transaction, economic substance, sham, among others. As the Federal Circuit reminded us all yesterday, the iterations are not interchangeable. I'm referring to the Federal Circuit's September 21, 2023 decision in GSS Holdings (Liberty) Inc. v. the U.S.
The Squeaky Wheel Gets the Grease? Employers Should Consider Filing Lawsuits to Obtain ERC Refunds... [ read ]
Just last week, the IRS announced that it was no longer processing any new Employee Retention Credit (ERC) claims amid a surge in questionable claims. While there may be questionable claims being filed, there are plenty of legitimate claims that should be processed and refunded to employers.
