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IRS Extends Time for Manager Meetings on Audits

April 4, 2012

The time for examiners to conduct a Group Manager Concurrence Meeting as part of a tax audit has been extended from 14 days to 30 days, the Internal Revenue Service said in a memorandum (SBSE-04-0312-023 ) to agents.

This interim guidance memorandum is being issued to Examination personnel to advise the requirement to conduct a GMCM has changed from no later than 14 business days to no later than 30 business days after completion of the initial appointment. This change is effective immediately. Please ensure this information is distributed to all affected employees within your organization.

The GMCM provides the examiner and the manager an opportunity to discuss the scope and depth of the examination, as well as the mutual commitment date, resulting in fewer delays, increased efficiency, and higher quality of examinations.

This guidance will be incorporated into IRM 4.10.3, Examination Techniques, and IRM 1.4.40, SB/SE Field and Office Examination Group Manager, by March 16, 2013.

Read more at: Tax Times blog

Colorado Sales and Use Tax Reporting Requirement for Out-of-State Retailers Struck Down By Colorado Judge

April 4, 2012

A federal judge in Colorado struck down March 30 as unconstitutional a reporting requirement imposed on out-of-state vendors that do not collect and remit state sales and use taxes (Direct Marketing Association v. Huber, D. Colo., No.1:10-CV-01546-REB-CBS, order 3/30/12).

Judge Robert E. Blackburn of the U.S. District Court for the District of Colorado said that Colorado's 2010 “Amazon” law, so called for one of the online retailers it ostensibly targets, violated the Commerce Clause of the U.S. Constitution.

The law, approved by the 2010 Colorado General Assembly (H.B. 1193), requires out-of-state vendors that do not collect state sales and use taxes to notify consumers they may have an obligation to pay taxes on remote purchases. The law also requires the vendors to report certain information about such transactions to the Colorado Department of Revenue.

Blackburn's ruling enjoins the enforcement of the act and related regulations against retailers that sell to Colorado customers but do not have a physical presence in the state.

His ruling came on cross motions for summary judgment filed by the Direct Marketing Association, the plaintiff in the case, and the Colorado Department of Revenue, the defendant.

Read more at: Tax Times blog

Tax Day 2012: Does The Government's P.R. Campaign Increase Compliance?

April 4, 2012

More than any other area of the criminal law, enforcement of the tax laws is associated with a specific date: April 15. 

In a 2010 article published in the Virginia Tax Review, Professors Joshua Blank and Daniel Levin analyzed 782 press releases issued by the Tax Division between 2003 and 2009 announcing civil or criminal enforcement events. Blank and Levin concluded that the Tax Division issued 58% more press releases between February 1 and April 15 than the rest of the year; 71% more between March 1 and April 15 than the rest of the year; and a whopping 128% more between April 1 and April 15 than the rest of the year.

Read more at: Tax Times blog

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