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By on November 27, 2023
On October 26th, the Tax Court issued an interesting opinion in Mill Road 36 Henry LLC v. Commissioner, T.C. Memo 2023-129, upholding the IRS disallowance of a $8.9 million deduction for an easement donation but also holding that a partnership's filing of an information return disclosing the wide disparity between its cost basis and claimed value of the easement donation meant there was no intent to mislead the IRS, and thus the civil fraud penalty did not apply.
Court Holds that Late-Filing Penalty is Applicable to E-Filed Tax Return
By on November 20, 2023
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
By on November 17, 2023
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.
