LexisNexis® Legal Newsroom
Tax Court Collection Due Process Standard of Review Upended by the First Circuit

In a decision that could dramatically change collection due process, the First Circuit Court of Appeals held that the standard of review applied to collection due process cases by the Tax Court for more than a decade is incorrect. In Dalton v. Commissioner, No. 11-2217P-01A (1st Cir. June 20, 2012) ...

Tax Court Finds IRS Compliance Officer Liable for Civil Fraud Penalty

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 tax fraud that will identify, particularly for laymen...

New ITIN Rules Burdensome, AICPA Tells IRS

" The American Institute of CPAs told the IRS that the new interim rules about how taxpayers must apply for Individual Taxpayer Identification Numbers (ITINs) for 2011 tax returns are burdensome and may prevent some taxpayers from getting the documentation they need to qualify for an ITIN. Individuals...

Sutherland Legal Alert: Bringing Certainty to an Uncertain Tax Position: IRS LB&I Directive Addresses Partial Worthlessness Deductions Claimed by Insurance Companies

By Bill Pauls and Michael Miles, Sutherland Asbill & Brennan LLP On July 30, 2012, the IRS Large Business & International (LB&I) Division issued guidelines intended to reduce the controversy associated with partial worthlessness deductions claimed by insurance companies. In brief,...

Sutherland Legal Alert: Bringing Certainty to an Uncertain Tax Position: IRS LB&I Directive Addresses Partial Worthlessness Deductions Claimed by Insurance Companies

By Bill Pauls and Michael Miles, Sutherland Asbill & Brennan LLP On July 30, 2012, the IRS Large Business & International (LB&I) Division issued guidelines intended to reduce the controversy associated with partial worthlessness deductions claimed by insurance companies. In brief, the guidelines...

Ninth Circuit Oral Argument on Act of Production Doctrine

The Record, a California legal publication, reports on oral argument in a case involved the act of production doctrine which says, in effect, that although the contents of documents may not be privileged, a witness under compulsion to produce the documents via subpoena or summons still has a Fifth Amendment...

IRS: Revised ITIN FAQ as of Sept. 14, 2012

2012 ITIN Review Frequently Asked Questions - Page Last Reviewed or Updated: 2012-09-14

New IRS Guidance for Ponzi Scheme Clawback Victims

For investors who need help from the IRS on how to treat clawback payments made to trustees, the IRS has published a new webpage . So far the IRS has posted answers to two questions: 1. How does a taxpayer treat the repayment of a clawback? 2. What does the taxpayer need to establish...

IRS Tightens ITIN Rules

Here is the Dec. 2012 news recap ; the Nov. 2012 IRS bulletins are here and here .

What You Should Know About FBAR Penalty Mitigation

By Karen Yip, LexisNexis Federal & International Tax Analyst The IRS requires the Report of Foreign Bank and Financial Accounts, TD F 90-22.1 (commonly known as the Foreign Bank Account Report, or "FBAR"), when a U.S. person has a financial interest in, or signature authority over, one...

Excerpts From the Jan. 1, 2013 Bender's Immigration Bulletin

USCIS Issues Policy Memo on International Filings On November 30, 2012, USCIS issued a final policy memorandum outlining the circumstances in which applicants may file Form I-601 (Application for Waiver of Grounds of Inadmissibility) and any associated Form I-212 (Application for Permission to Reapply...

The Immigration Scandal at DHS - Just as Bad as at IRS

" Americans are outraged when tax laws and revenue agents bite them, but seem scantly or not at all troubled when our immigration laws and their bureaucratic enforcers devour people and property rights. No doubt this disparity of concern proves the maxim that it all depends on whether your own or...

IRS: Phone Scam Targets Immigrants, Threatens Deportation

"The Internal Revenue Service today warned consumers about a sophisticated phone scam targeting taxpayers, including recent immigrants, throughout the country. Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer . If the victim...

Consultant Heading to Prison for Failing to Report Foreign Bank Accounts at UBS

Christopher B. Berg of Portola Valley, California, has been sentenced to one year and one day in prison to be followed by three years supervised release after pleading guilty to willfully failing to file the required report of foreign bank account for an account he controlled in 2005 at UBS in Switzerland...

Ballard Spahr LLP: Supreme Court Rules That Severance Payments Are Subject To FICA Taxes

By Wendi L. Kotzen, Timothy F. McCormack, and Christopher A. Jones The U.S. Supreme Court has unanimously held that payments of supplemental unemployment benefits (SUB payments) are taxable wages subject to FICA tax withholding. The Court’s decision in United States v. Quality Stores, Inc. ...

IRS Sounds Warning on Immigration Scammers

"The Internal Revenue Service today sounded another warning for taxpayers to guard against sophisticated and aggressive phone scams targeting consumers, particularly recent immigrants. Potential victims are threatened with deportation, arrest, having their utilities shut off or having their driver’s...

News Excerpts From the Aug. 1, 2014, Bender’s Immigration Bulletin

IRS Adopts New Policy on ITINs | On June 30, 2014, the Internal Revenue Service announced that Individual Taxpayer Identification Numbers will expire only if not used on a federal tax return for five consecutive years. The IRS will not begin deactivating ITINs until 2016 in order to give all interested...

Ballard Spahr LLP: IRS Issues Draft ACA Reporting Forms

By Jonathan M. Calpas and Edward I. Leeds The Internal Revenue Service recently released draft versions of the forms that will be used to meet the shared responsibility reporting requirements under the Affordable Care Act (ACA). These draft forms have been released for comment and may not be used...

Judge Finds Indiana, School District Employers Allege Injury Under ACA

INDIANAPOLIS — (Mealey’s) A state and 39 school districts challenging the legality of payments imposed on large employers under the Internal Revenue Services’ implementation and interpretation of Patient Protection and Affordable Care Act (ACA) regulations allege an addressable injury...

Dedon On Estate Planning: 2015 Exemption - $5,430,000

The IRS announced inflation adjustment tax items for 2015. Of interest on the estate and gift side, the annual exclusion remains at $14,000. However, the exclusion amount for taxpayers dying in 2015 increased from $5,340,000 to $5,430,000. Thus, a married couple can protect $10,860,000 from federal estate...

U.S. Supreme Court Hears Arguments Over ACA Federal Exchange Subsidy Availability

WASHINGTON, D.C. — (Mealey’s) Both sides faced critical questioning from Justice Anthony Kennedy during oral arguments March 4 in the case challenging the availability of subsidies in the Patient Protection and Affordable Care Act (ACA) federal exchange ( David King, et al. v. Sylvia Mathew...

Troutman Sanders: IRS Releases Updated Guidance Further Clarifying ‘Beginning of Construction’ For Renewable Energy Facilities

On March 11, 2015, the Internal Revenue Service (IRS) issued Notice 2015-25, which updates its prior guidance to reflect the extension of the beginning of construction deadline for the PTC and ITC made by the Tax Increase Prevention Act of 2014 (TIPA). TIPA extended the deadline from January 1, 2014...

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Elaine Gagliardi on Proposed Treasury Regulations Clarifying I.R.C. Section 1022 Carryover Basis Rules

By Elaine Gagliardi Proposed treasury regulations have been promulgated to clarify the interaction of the I.R.C. Section 1022 carryover basis rules with other sections of the Internal Revenue Code. In this Emerging Issues Analysis, Elaine Gagliardi, a professor of law at the University of Montana...

John Dedon on Estate Planning: Good news on Estate Tax Exemption

The IRS recently announced the inflation adjusted figures for gift and estate tax exemption amounts for 2016. The annual exclusion amount remains at $14,000. That is the amount that can be gifted to US citizens each year without eroding the per person exemption amount. The exemption amount increases...