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United States Supreme Court Building in Washington DC, USA.The Supreme Court’s recent decision in CIC Services, LLC v. Internal Revenue Service may have significantly expanded taxpayers’ ability to obtain immediate injunctive relief against onerous tax reporting requirement.

The Anti-Injunction Act bars any “suit for the purpose of restraining the assessment or collection of any tax.” Civil penalties are usually considered to be “taxes” for purposes of the Anti-Injunction Act. But in CIC Services, the Supreme Court sustained a suit to enjoin the enforcement of IRS Notice 2016–66 which provides that micro-captive insurance arrangements are “listed transactions” which must be disclosed (regardless of the ultimate validity of the transaction) upon pain of a civil monetary penalty under IRC § 6707A – as well as potential criminal sanctions under § 7203 for the willful failure to make a return or supply information required by law or regulation.  The IRS’ problem in CIC Services was that in issuing Notice 2016-66, it had failed to comply with the Administrative Procedures Act (APA) which requires that a rule with the force and effect of law may be issued only after an opportunity for public notice and comment. No public notice, no enforceable rule, the Court held.  The Anti-Injunction Act did not deprive the courts of jurisdiction.
Continue Reading Recent Supreme Court Case Provides Possible Pre-Assessment Judicial Review for Onerous Penalties

Safely mailing an application for ballot for 2020 election at a drive-up mailbox at the US Post OfficeDeadlines are important in legal matters, especially when it relates to tax issues.  There are estimated tax deadlines, tax return filing deadlines, and a host of deadlines if a return is audited and any adjustments are challenged. Once you get to court in a tax dispute – more deadlines. Anytime a taxpayer misses a deadline they usually lose some portion, if not all, of the rights associated with that deadline. Imagine, however, that a taxpayer attempts to meet the deadline by mailing a document that the IRS claims they never received.
Continue Reading The Dangers of Improper Mailing to the IRS

Man showing Find the right people tittle on t-shirt. Human resources, partnership, choosing partner concept.Understanding the IRS and the tax laws is very difficult and confusing.  When a taxpayer has a tax controversy matter with the IRS, selecting a tax attorney may be just as confusing and complicated.  Not all attorneys are created equal when it comes to the tax laws and representing clients before the IRS.  Dealing with the IRS can be risky and confusing for someone, including an attorney, if that person is not familiar with IRS procedure.  Clients seeking a tax attorney when they are having problems with the IRS must be careful to select someone who understands this unique area of the law.  Challenging the IRS requires an attorney with special expertise and experience.
Continue Reading How to Select a Tax Attorney

USA patriotic American flag muscular arm flex adorned in red, white and blue stars and stripes, huge bicep, very cool symbol of fitness, pride, strength and motivation. Isolated vector illustration for easy editing.The battle outside ragin’

Will soon shake your windows

And rattle your walls

For the times they are a-changin’

-Bob Dylan

A change in presidential administrations brings with it the uncertainty of what the political, legal and tax landscape will look like in the future. Statements from the Commissioner of the Internal Revenue Service and the President of the United States are starting to provide clarity of what things will look like going forward.  Here’s what we know and what you, as a taxpayer, should be thinking about as you adjust your financial planning.
Continue Reading IRS Commissioner and President Biden Draw Battle Lines

Overview of the Appeals Process

The goal of the Appeals Office is to settle as many cases as possible within the broad guidelines of its Mission Statement:

The Appeals mission is to resolve tax controversies, without litigation, on a basis which is fair and impartial to both the Government and the taxpayer and in a manner that will enhance voluntary compliance and public confidence in the integrity and efficiency of the Service.

Even though much of the work of Appeals comes from examinations, its jurisdiction has expanded over the last few years.  In examination cases, the taxpayer receives the 30-day letter.  This letter is accompanied by the Revenue Agent Report and gives the taxpayer 30 days to request an Appeals conference.  In most cases, the taxpayer is required to file a protest describing the taxpayer’s position.  If the taxpayer does not request an Appeals conference, then the IRS will send the taxpayer a notice of deficiency.  If the taxpayer files a petition with the Tax Court, and has not had an Appeals conference, the IRS will send the case to Appeals to investigate a possible settlement.  In other types of cases, the IRS will send the taxpayer a letter advising the taxpayer of his right to an Appeals and giving the taxpayer a time limit in which to request an Appeals conference. You file the protest as stated in the letter from the IRS and within the 30-day period.…

Continue Reading Going to Appeals – Preparing the Protest

All too often, people don’t keep adequate records to demonstrate they are entitled to deduct travel expenses.

The general rule from the Supreme Court is that deductions are a matter of legislative grace, and taxpayers must maintain sufficient records to substantiate the amounts of their income and entitlement to any deductions or credits claimed.

So…