Monthly Archives: May 2022

 
According to Law360, it took the Internal Revenue Service nearly twice as long to close out appeals cases in fiscal year 2021 compared with the agency's progress in fiscal year 2018, according to data an IRS official shared Friday.

The speed at which the agency closed nondocketed appeals cases languished to 372 days on average in 2021, according to statistics that Andy Keyso, head of the Independent Office of Appeals, shared at the American Bar Association Section of Taxation's May meeting, held in person in Washington, D.C., and online. That rate, the agency's so-called cycle time, was 194 days on average in fiscal year 2018 for nondocketed cases, or those not filed in Tax Court.

"I'm troubled by the increase in cycle time, but I'm not defeated by it," Keyso said at the conference. "I believe that it is reversible, and we will reverse it here as we get people back into the offices."

January 2019 And The Coronavirus Pandemic That Rocked The Agency And The Country Beginning In March 2020. Keyso Said.

Have an IRS Tax Problem?

     Contact the Tax Lawyers at

Marini & Associates, P.A. 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

 

Read more at: Tax Times blog

According to Procedurally Taxing, in Seaview Trading, LLC v. Commissioner, the 9^th Circuit looked at the age-old tax question of when is a return is considered filed for the purposes of starting the assessment statute of limitations. 

In Seaview, the taxpayer, a partnership, believed it had filed its 2001 partnership tax return in July 2002, but the IRS had no record of the filing. In 2005, the IRS commenced an audit of the taxpayer’s 2001 return. The IRS agent conducting the exam notified the taxpayer that the IRS had no record of the taxpayer filing a 2001 partnership income tax return (Form 1065) and requested a signed copy. 

In response, the taxpayer faxed a signed copy of the return to the agent. The IRS later relied on the information on the faxed to propose an additional assessment against the taxpayer. The final partnership administrative adjustment (FPAA) proposing an assessment was issued in 2010, which was more than four years after the taxpayer faxed a signed copy of the return to the revenue agent. 

The Tax Court in TC Memo 2019-122 took a draconian view holding that the taxpayer did not “file” a tax return when it faxed a copy to the IRS agent. Furthermore, the Tax Court found that the 2001 return faxed to the agent did not even qualify as a “return” reasoning that the taxpayer did not intend to file a return when it faxed the return to agent because the taxpayer included a copy of the certified mail receipt showing a July 2002 mailing date. 

Since the tax return faxed to a revenue officer was not a tax return filing nor a return, the Tax Court found that the final partnership administrative adjustment (FPAA) issued in 2010 was not barred by the limitations period under section 6229(a).  The IRS had unlimited time to assess as no return was filed.    

The taxpayer appealed to the Court of Appeals for the 9^th Circuit. On May 11, 2022, the 9^th Circuit rendered its decision and reversed the decision of the Tax Court. A copy of the 9^th Circuit decision is located here.  

The Ninth Circuit stated that “Based on the ordinary meaning of “filing,” we hold that a delinquent partnership return is “filed” under § 6229(a) when an IRS official authorized to obtain and process a delinquent return asks a partnership for such a return, the partnership delivers the return to the IRS official in the manner requested, and the IRS official receives the return.” 

Since the Tax Court had concluded that the signed copy of the Form 1065 faxed to agent was not a return under the Beard test, See Beard v. Commissioner, 82 T.C. 766, 777 (1984), the 9^th Circuit went on to analyze this issue. The 9^th Circuit found that the Form 1065 that Seaview faxed to agent met all the Beard criteria and therefore was a return.   

The IRS may decide to limit its acquiescence of this decision to the 9^th Circuit and continue to fight this issue in other circuits.  It may decide to seek en banc review encouraged by the dissent or to seek Supreme Court review if it has an adequate conflict.  There will be more to come about this case as the IRS reacts to the decision and plots its path forward.

Have an IRS Tax Problem?

     Contact the Tax Lawyers at

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

Read more at: Tax Times blog

In its latest sanctions against Russia, President Joe Biden's administration banned U.S. providers of accounting and consulting services from working with any entity in that country while also penalizing executives of state-controlled Gazprombank and Sberbank.

The same day, the Group of Seven economic powers, including the U.S., committed to prohibiting or phasing out imports of Russian oil as part of Western efforts to punish President Vladimir Putin's government for invading Ukraine in February.

According to a White House statement, the new U.S. penalties also include export controls on industrial goods, limits on three Russian state-controlled TV stations, and additional visa restrictions on Russians.

"Putin has failed in his initial military objective to dominate Ukraine, but he has succeeded in making Russia a global pariah," the statement said. "Today, the United States, the European Union and G-7 committed to ratchet up these costs by collectively taking further measures, consistent with each partner's respective legal authorities and processes."

U.S. Entities Are Now Banned From Providing Accounting, Corporate Formation, or Management Consulting Services To Any Russian Person. 

The White House Statement Said, Explaining That Such Services Could "Help Finance Putin's War And Aid Sanctions Evasion." 

The Statement Didn't Mention Legal Services.

 Have an IRS Tax Problem? 

 

   
Contact the Tax Lawyers at 

Marini & Associates, P.A. 

 

 

for a FREE Tax HELP contact us at:

www.TaxAid.com or www.OVDPLaw.com 
or Toll Free at 888-8TaxAid (888) 882-9243

 

Read more at: Tax Times blog

An Offer in Compromise is an agreement between a taxpayer and IRS that settles a tax liability for payment of less than the total amount determined and assessed. Generally, the IRS expects that all taxpayers will pay the total amount of tax due, regardless of the amount. However, IRS recognizes that it's both sound business practice and good tax policy to settle some cases for less than the total amount due. To obtain this relief the taxpayer must first submit an offer-in-compromise (OIC). 

The IRS may accept a taxpayers' offer to compromise their tax liability when: 

• there is doubt about the debt's collectability

• there is doubt about the taxpayer's liability for the taxes or 

• to promote effective tax administration because either

  1. collection of the full amount would cause economic hardship for the taxpayer, or

  2. compelling public policy or equity considerations provide a sufficient basis for compromising the liability.

The Form 656 Booklet contains all the forms needed by an individual or a business to submit an OIC to the IRS. Anyone submitting an offer to the IRS must use the most current version of the booklet (Rev. 4-2022) to avoid issues with processing.

The IRS also encourages anyone thinking about submitting an offer to use the IRS's Offer-in-Compromise Pre-Qualifier Tool to verify their eligibility to file one.

Toll Free at 888-8TaxAid (888) 882-9243

 

Read more at: Tax Times blog