Texas Tax Talk

Texas Tax Talk

Tag Archives: IRS

IRS Computer Technology is Woefully Inadequate

Posted in Tax Practice
CNN recently released a fascinating look at the computers the IRS uses in “IRS Says It’s Using Technology From JFK’s Time.” IRS Commissioner John Koskinen states that the IRS computer system is “like driving a Model T that now has a great GPS System and wonderful sound system.” It is common knowledge that the Internal… Continue Reading

How to get the IRS to pay your legal fees

Posted in Tax Practice
What can you do when the IRS is misbehaving and it directly affects you? You will have to fight them, but the law allows you to recover your litigation costs if you win. As many know, the IRS has had a very troubled recent past (i.e. Lois Lerner).  Those problems keep getting worse, especially with IRS budget cuts. … Continue Reading

Is the Internal Revenue Service Lying?

Posted in Criminal Tax
Do you remember the controversy where the IRS was accused of targeting and unfairly auditing the Tea Party? In an article Sunday from CNN’s Political Ticker by Sara Fischer, the IRS has claimed that it is unable to recover subpoenaed emails from former IRS official Lois Lerner. The reason given is a “computer crash.” A firestorm has erupted in… Continue Reading

Do we really have a “Taxpayer Bill of Rights”?

Posted in IRS Collection, Tax Practice
The IRS announced the adoption of a “Taxpayer Bill of Rights” Tuesday.   I have listed the rights below along with my commentary.  Just like our U.S. Constitutional Rights, these “rights” are and will be watered down. All of us have certain rights we feel strongly about.  For instance, folks here in Texas are very concerned about guarding their rights… Continue Reading

Application for Tax Exempt Status To Be Eased by IRS – Except for the Tea Party

Posted in IRS Collection
In 2013, the IRS revealed that it had selected “social welfare” groups (like the Tea Party) applying for tax-exempt status for closer scrutiny.  That investigation is still ongoing and it has given the IRS a black eye. The Tea Party is a 501(c)(4) organization – not your traditional 501(c)(3) which must be “organized and operated exclusively for religious, charitable, scientific,… Continue Reading

Gentleman’s Club Owner Hit With Fraud Penalty

Posted in Criminal Tax
A new Tax Court decision just came out – Potter v. Commissioner, TC Memo 2014-18.  The case involved a “gentleman’s club” owner in Michigan. In December 2006 IRS special agents engaged in an undercover investigation of Potter’s Pub, posing as buyers interested in acquiring the business. John Potter assured the agents that Potter’s Pub was… Continue Reading

Qualified Domestic Relations Orders: Little-Known Issues Involving Dividend Pass-Through Elections And Same-Sex Spouses

Posted in Uncategorized
Special thanks to guest author Jason Luter for this post. As most family law practitioners are aware, ERISA and the Internal Revenue Code (“IRC”) do not permit a participant in a retirement plan to assign or alienate his/her interest in that plan to another person.  These rules are intended to ensure that the participant’s retirement benefits are… Continue Reading

Expansion of IRS Innocent Spouse Relief

Posted in Tax Court, Tax Planning, Tax Practice
On September 13th the IRS issued a new revenue procedure that significantly changes equitable innocent spouse relief.  I wrote an article that was published Tuesday in the Texas Bar Association’s Texas Tax Lawyer . I have excerpted part of the article which discusses the significant changes. Change #1: Greater deference is given to the presence of… Continue Reading

What You Need to Know About the IRS Shutdown

Posted in Uncategorized
It is big news right now that the US government is facing partial closure.  The partisan politics in Washington are going to affect most Americans whether they expect it or not.  My list of the tax implications to the shut down is: Approximately 90 percent of IRS employees are not at work today.  If you… Continue Reading