Tax Law

Recent Posts

Tax Court Finds Fraud Based, in Part, On Negative Inference from Fifth Amendment Assertion
Posted on 14 Aug 2012 by Jack Townsend

In Loren-Maltese v. Commissioner, T.C. Memo. 2012-214 , the Tax Court introduces the legal issues as follows: It's the facts that make this case interesting, but there are three issues of law that color its background: the general rules of tax... Read More

Tax Protestors Alive and Well and Living in Canada
Posted on 16 Apr 2012 by Allison Christians

The tax protestor movement is alive and well in Canada and getting some publicity just in time to serve as a warning to Canadian taxpayers readying their annual returns.* I read with interest the recent case of Russell Porisky and his wife Elaine Gould... Read More

It May Be Legal, But It Ain't Always Right
Posted on 28 Apr 2011 by Tax Analysts Editorial Staff

Tax avoidance is legal and tax evasion is not. Simple distinction, but not always relevant, at least not in politics. Consider the recent burst of outrage over corporate tax avoidance generally and General Electric's tax bill in particular. In some... Read More

Tax Mitigation-Avoidance-Evasion
Posted on 5 Jun 2012 by Allison Christians

"Tax avoidance involves arrangement of a transaction in order to obtain a tax advantage, benefit, or reduction in a manner unintended by the tax law. It is an unacceptable manipulation of the law which is unlike legitimate tax mitigation. Mitigation... Read More

OECD Praises Itself Through G20 For Progress on Tax Evasion - But Is It Praiseworthy?
Posted on 20 Jun 2012 by Allison Christians

In a recent post on its website, the OECD says that the G20 has reported that "steady progress is being made towards tackling tax evasion more effectively." In an article I wrote in 2010, I called the G20 a syndicator of OECD tax views ,... Read More

Pastor Going to Trial for Tax Charges Predicted Jesus Would Come On May 27
Posted on 31 May 2012 by Jack Townsend

I have previously blogged on Ronald Weinland. See Controversial Pastor, Self Proclaimed Prophet, Indicted re Income from Church Offerings and Offshore Accounts (11/21/11), here . My impression from afar is that he is just a charlatan (see here ) in the... Read More

Second Circuit Reverses and Vacates Convictions for Wire Fraud and Tax Evasion
Posted on 1 May 2012 by Jack Townsend

In United States v. Litwok, ___ F.3d ___, 2012 U.S. App. LEXIS 8727 (2d Cir. 2012), here , the Second Circuit upset convictions for wire fraud and tax evasion, applying seeming settled principles. I address first the tax evasion convictions, although... Read More

New Indictment of U.S. Tax Return Preparers & Enablers re Offshore Bank & Related Activity
Posted on 18 Jun 2012 by Jack Townsend

In a First Superseding Indictment, here , filed June 14, 2012 in CD CA, three principals of a tax return preparation service, United Revenue Service ("URS") were indicted. The DOJ Tax Press Release is here, Three Tax Return Preparers Charged... Read More

Tax Court Finds IRS Compliance Officer Liable for Civil Fraud Penalty
Posted on 10 Jul 2012 by Jack Townsend

Readers interested in the risks of being audited with respect to income tax noncompliance arising from foreign assets (particularly financial accounts) often ask what it takes for the IRS to prove fraud. I am aware of no standard litmus test of civil... Read More

Defendant Waives Attorney-Client Privilege by Asserting Reliance on FBAR Advice Defense
Posted on 23 Jul 2012 by Jack Townsend

In United States v. Kerr, 2012 U.S. Dist. LEXIS 98836 (D AZ 2012) , a case with two U.S. taxpayers and their lawyer as defendants, the court held that the indicted U.S. taxpayers' claims of reliance constituted a waiver of their attorney-client privilege... Read More

Confusion in the Court of Appeals About the Indirect Method of Proof
Posted on 10 Oct 2011 by Jack Townsend

In both criminal and civil cases, the Government sometimes uses what is called an indirect method of proof to show that a taxpayer owes additional tax. A direct method, for example, uses the return as filed and proves omitted income or improperly claimed... Read More