Our laws protect certain communications. This includes communications with doctors, religious advisors, spouses, and even attorneys. When it comes to Federal tax matters, communications with tax attorneys are usually at the forefront. The IRS often seeks information about these communications to help it figure out how the taxpayer structured their affairs. The attorney-client privilege is……
Category: Tax Law
Late-Filed Tax Returns & Excess Collections
Life happens. We all experience it. There are times when life events can result in tax returns being filed late. Our tax laws offer little in way of leniency when this happens. The IRS will assess late filing penalties. Worse yet, amounts that were already timely paid to the IRS may not be refunded to……
S Corporation: Distribution of Appreciated Assets
Those who set up S corporations usually do so as their accountant told them that it could save taxes. This is often true. The S corporation can result in tax savings. This may include the standard reduction in self-employment/payroll taxes or, for more advanced tax planning, income taxes. The ability to freeze the value of……
Producing Tax Records on the Day of Trial
If you are litigating a case with the IRS in the U.S. Tax Court, can you fail to produce records and then show up with them for the first time on the day of trial? The answer to this question is a clear “no” in most courts as this type of conduct is unfair to……
Pay IRS Estimated Tax Prior to Filing Bankruptcy
Taxes incurred just prior to filing bankruptcy are not dischargeable in bankruptcy. The debtor will have to pay these taxes or work out a collection alternative with the IRS for these taxes. This raises the question as to whether a debtor can basically pay the IRS estimated payments to satisfy their income taxes for the……
Court Says IRS Issuing Six Summonses is Not Bad Faith
The IRS has a lot of power. This power stems from the broad Congressional grant of authority to examine books and records to enforce our tax laws. Since taxes impact every individual and business for every transaction (and even inactions), this allows the IRS to audit and inquire into just about anything it wants to.……
Can a Forensic Accountant Testify as an Expert?
One of the most frequent disputes in IRS audits is whether the taxpayer had unreported income. This is income that the taxpayer failed to report on his or her income tax return. This typically involves cash a business or service provider received from clients. It may also include non-cash deposits into financial accounts. This “income……
The Qualified Nonpersonal Use Vehicle
What Congress provides with one provision, it often takes away with another. This can result in legal challenges whereby the court creates exceptions. The exceptions can be modified and qualified by later legislation. This creates a labyrinth that one has to navigate to determine how an item is treated for federal income tax purposes. The……
Defeating the IRS Passport Certification Notice
Congress amended the code to allow the IRS to certify passports. This added another tool the IRS can use to get those with IRS back taxes to contact the IRS and, in some cases, to pay the IRS. As with most new laws, there are a number of open questions about how and when the……