ACA Section 4980D Penalties Apply to Large and Small Employers... [ read ]
Internal Revenue Code section 4980D imposes a $100.00 per day per employee excise tax on any employer that fails to meet certain group health plan requirements. In testimony before the Senate Finance Committee, a policy analyst with the National Federation of Independent Business testified that 18 percent of small businesses are engaged in practices that may subject the employers to the $100.00 per day per employee penalty.
Eleventh Circuit Holds "Cash Hoard" Exceeding $10k Currently is Not Required for a Structuring Indictment... [ read ]
In U.S. v. Sperrazza, the U.S. Eleventh Circuit recently affirmed the conviction of a Georgia physician who was convicted of three counts of tax evasion, in violation of 26 U.S.C. § 7201, and two counts of structuring currency transactions, in violation of 31 U.S.C. § 5324(a)(3). U.S. v. Sperrazza, No. 14-11972 (11th Cir. Aug. 17, 2015).
The IRS Has Issued You a Notice of Tax Lien, Now What?... [ read ]
After a taxpayer fails to remit payment on an outstanding tax liability and the IRS issues a demand for payment, the Internal Revenue Code imposes a statutory lien in favor of the government on all property and property rights of the taxpayer. I.R.C. § 6321. The lien dates back to the date of assessment and continues until the liability is satisfied or becomes unenforceable. I.R.C. § 6322.
Major Changes for FBAR and Tax Return Due Dates... [ read ]
On July 31, 2015, President Obama signed into law H.R. 3236, the "Surface Transportation and Veterans Health Care Choice Improvement Act of 2015." In addition to providing a 3-month, stop-gap reauthorization of the Highway Trust Fund and transferring over $8 billion to the Fund, the Act alters a number of tax-return due dates—for instance, moving the due date for partnership tax returns a month ahead of the due date for corporate tax returns—and changes the due date for filing an FBAR (FinCEN Form 114) to match the filing deadline for individual tax returns.
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.
