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Families First Coronavirus Response Act

In Coronavirus by Matthew RobertsLeave a Comment

On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act, which includes the Emergency Family and Medical Leave Expansion Act and the Emergency Paid Sick Leave Act (collectively, the “Act”).  The Act brings into effect sweeping changes for certain small businesses which have employees who are affected by the COVID-19 outbreak.  The Act’s provisions are …

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A Fresh Start for Many? Economic Downturn Means an Upturn in Favorable Tax Settlements

In Offer in Compromise by Jason B. FreemanLeave a Comment

As the threat of Coronavirus spreads, many taxpayers face unprecedented economic challenges.  The threat of commercial slowdowns and recession leaves millions in uncharted territory.  Many Americans face the added anxiety of past tax debts.  And the threat of a lien or levy by the IRS, a so-called “super-creditor,” leaves many taxpayers on edge—and looking for a fresh start. For many …

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The IRS Whistleblower Program

In False Claim Act, Whistleblower by Jason B. FreemanLeave a Comment

The Internal Revenue Service’s Whistleblower Office oversees the IRS’s Whistleblower Program. It is responsible for processing thousands of tax whistleblower claims every year.   The IRS Whistleblower Program is designed to offer financial incentives and rewards to individuals—“whistleblowers”—who help the government collect taxes by providing information that assists in detecting violations of the internal revenue laws.  The IRS Whistleblower Program provides …

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The Cum-Ex Files

In Fraud by Jason B. FreemanLeave a Comment

Freeman Law recently reported on the Cum-Ex tax scandal in The Biggest Tax Heist Ever? The Cum-Ex Scandal–an alleged fraud that has been dubbed by some as “the most complicated” tax fraud case in history.  Since that time, the Eurpoean Union’s 55 billion euro cum-ex tax scandal has continued to expand.  (See Two More Bankers Arrested in Germany Over Cum-Ex …

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A Summary of the New IRS Appeals Procedures under the Centralized Partnership Audit Regime

In Audit, Partnership Tax by Matthew RobertsLeave a Comment

Congress has continuously struggled to find the right procedural mechanism to audit, assess, and collect taxes related to partnerships.  Prior to 1982, partnerships were not audited at all.  Rather, the partners of the partnership were subject to audit, assessment, and collection.   In 1982, Congress substantially modified these existing rules.  Under this new scheme – referred to as TEFRA – …

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Tax Shelters, the Reportable Transaction Penalty, and the Graev’ Supervisory Approval Requirement for IRS Penalties

In 6707A, 6751, listed transaction by Jason B. FreemanLeave a Comment

The Tax Court’s recent decision in Laidlaw’s Harley Davidson Sales, Inc. v. Commissioner, 154 T.C. No. 4 (2020), addresses section 6751(b)’s requirement for supervisory approval in the context of a section 6707A penalty for reportable transactions.  The Tax Court addressed the question of whether section 6751(b)(1)’s supervisory approval requirement applies to a section 6707A assessable penalty.  The answer: Yes, it …

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The Tax Impact of Ponzi Scheme Investments

In Deductions, Ponzi by Jason B. FreemanLeave a Comment

Victims of Ponzi schemes run by fraudulent investment brokers may not realize for several years that the brokers are fraudulently reporting earned income. In a typical Ponzi scheme, the broker represents to the investor that these dividends are being reinvested. Thus, victims are likely to report such income (e.g., interest) as gross income when filing taxes. When the scheme inevitably …

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Tax Shelter Penalties: Listed Transactions and Reportable Transactions

In tax shelter by Jason B. FreemanLeave a Comment

The Internal Revenue Code imposes reporting obligations with respect to so-called “tax shelters.”  Most notably, if a taxpayer participates in a “reportable transaction,” the taxpayer must file a Form 8886 for each year in which the taxpayer participates in the reportable transaction.[1]  In addition, the taxpayer is required to send the form to the Office of Tax Shelter Analysis (the …