Although the government bears the burden of production for penalties, this often involves nothing more than showing that the penalties were properly assessed. Penalty relief is usually only given when the taxpayer can marshal their best facts and make a persuasive argument for leniency. This is because the focus is usually on the actions of the taxpayer in properly reporting amounts on the tax return and not the procedures followed by the IRS. However, recent litigation surrounding Code Sec. 6751 has turned added focus onto the IRS procedures for assessing penalties. This focus has resulted in numerous taxpayers having the opportunity to challenge penalties on technical grounds without delving into the actions of the taxpayer’s tax reporting. In some cases, the IRS has even conceded penalties when faced with their own lack of evidence regarding the proper approval procedures.
Continue Reading IRS Fails to Follow its Own Procedures and IRS Counsel Claims Supervisory Approval Still Valid

News came out last week that chiropractor Stephen Jacobs of Lowell, MA is in hot water with the feds.  Dr. Jacobs allegedly paid an IRS auditor $5,000 in cash to ignore two deductions he improperly took on this 2011 income tax form.

These deductions, allegedly, were in fact payments Jacobs made to two different women

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

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:

  1. Approximately 90 percent of IRS employees are not at work today.  If you

Closely held corporations often have issues come up about succession planning and also about how to structure transactions in the most tax advantageous way possible.  Corporate redemption of a shareholders stock is always something to consider.

Hypothetical  – Bob and Jim created an oil and gas services company back in the 1970s as 50-50 owners. 

April 15th is quickly coming up.  This can be a stressful time of year – preparing your taxes is simply not a  lot of fun.  However, it is important to file your return  on time.

 Why is important to file and pay on time?

  1. First, not filing or paying can be a crime.  The

The American Taxpayer Relief Act of 2012 (“TRA 2012”), passed by Congress and signed into law by the President on January 2, 2013, prevents many of the tax hikes that were scheduled to go into effect in 2013 and avoids the “fiscal cliff”.  The TRA 2012 also retroactively extends the IRA Charitable Rollover which expired