Category Archives: criminal tax law

The IRS has released a new draft of Form 8857, Request for Innocent Spouse Relief, and accompanying draft instructions. Among other changes, the 2021 draft Form 8857 and draft instructions reflect the Taxpayer First Act’s (TFA; PL 116-25) limitation on the Tax Court’s review of IRS innocent spouse determinations.

When married individuals file a joint return ("joint filers"), they become jointly and severally liable for any tax due on that joint return. Joint and several liability means that the IRS can collect the entire amount of any tax due from either spouse who signed the joint return. (Instructions to Form 8857)

IRC Sec. 6015 provides different types of relief from this joint and several liability (innocent spouse relief). A joint filer uses Form 8857 to request innocent spouse relief. (Instructions to Form 8857)

Married people who did not file joint returns, but who lived in community property states, may request relief from liability for tax attributable to an item of community income. (Instructions to Form 8857)

The TFA added Code Sec. 6015(e)(7), which changed the scope of the Tax Court's review of requests for innocent spouse relief. Under Code Sec. 6015(e)(7), the Tax Court's review of an IRS determination denying a request for innocent spouse relief is limited to (a) the administrative record "established at the time of the determination," and (b) any additional newly discovered or previously unavailable evidence.

Both the 2021 draft of Form 8857 and the 2021 draft instructions alert requesting spouses that they need to make the administrative record as complete as possible because Code Sec. 6015(e)(7) limits the Tax Court's review of IRS denials of innocent spouse relief requests.

Both draft form and instructions also reference IRS Publication 971, Innocent Spouse Relief. Pub 971 contains descriptions of the factors the IRS considers when evaluating claims for innocent spouse relief, as well as other helpful information for requesting spouses.

Also, the 2021 draft Form 8857 :

• allows requesting spouses to change their address of record by checking a box,

• provides the requesting spouse with the ability to authorize the IRS to leave a voice message at the phone number they provided,

• allows the requesting spouse to indicate their primary or preferred language for communicating with the IRS,

• allows the requesting spouse to provide their "best or safest" phone number,

• replaces various checkboxes with spaces for narrative descriptions and explanations about the requesting spouse's situation, and 

• modifies the question "did you sign a joint return" to read "did you intend to file a joint return."

Need Innocent Spouse Relief For
Your Joint IRS Tax Problem? 

  
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Read more at: Tax Times blog

The IRS has released draft instructions for Form 2848 (Power of Attorney and Declaration of Representative) and Form 8821 (Tax Information Authorization) that emphasize the use of the IRS's new online Tax Pro Account, which allows taxpayers to control online who can represent them and/or view their tax records. The Tax Pro Account website was launched last week. 

The draft instructions for both forms now start with the following tip: "For faster processing of certain authorizations, use the all-digital Tax Pro Account at IRS.gov/TaxProAccount. Most requests record immediately to the Centralized Authorization File (CAF)."

In addition, the draft instructions for both forms indicate that a signature created using third-party software is an acceptable electronic signature method.

Regarding tax matter partners and TEFRA (related to certain partnership tax years beginning prior to January 1, 2018), the draft instructions for Form 2848 now read, "For purposes of executing Form 2848 in the case of a TEFRA partnership audit, the TMP must sign the Form 2848." Previously that instruction read, "For purposes of executing Form 2848 in the case of a TEFRA partnership audit, the TMP has authority to act in the name of the partnership and may sign the Form 2848."

  
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 Law360, The U.S. Department of Justice recommended the Treasury Department disclose former President Donald Trump's personal tax returns, along with those for eight of his businesses, to the House Ways and Means Committee, according to a slip opinion published Friday.

Treasury should honor a revised request made in June for Trump's tax information between 2015 and 2020, the DOJ said in the opinion from its Office Of Legal Counsel. The request, by House Ways and Means Chair Richard Neal, D-Mass., should be deemed valid under Internal Revenue Code Section 6103(f)(1), the DOJ said.

When considering whether to honor lawmaker requests for sensitive tax information, the executive branch should assume that those legislators have acted in good faith in furtherance of legitimate legislative goals, and the appearance of political motivation should rarely lead to the denial of those requests, according to the opinion.

"The Chairman of the House Ways and Means Committee has invoked sufficient reasons for requesting the former President's tax information," said the opinion, written by Acting Assistant Attorney General Dawn Johnsen. "Under section 6103(f)(1), Treasury must furnish the information to the Committee."

Neal made a request in April 2019 for Trump's tax information, which the government rebuffed. The request, under Section 6103, was made to allow the committee to effectively review the Internal Revenue Service's internal processes for auditing the president's tax returns, Neal said. After the administration likewise flouted a later subpoena, Neal sued to enforce it.

Have a 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 Law360, A New York woman is liable for $333,000 in penalties and interest for failing to report bank accounts she controlled in Switzerland and Hong Kong, U.S. attorneys in New York said in a complaint filed in  U.S. v. Bouskila, case number 1:21-cv-4243, in the United States District Court for the Eastern District of New York.

Cecile Bouskila owes penalties and interest because she did not file Report of Foreign Bank and Financial Accounts forms from 2004 through 2011 for several accounts she controlled, the government told the U.S. District Court for the Eastern District of New York.

From 2013 to 2018, Bouskila signed numerous consents to extend the statute of limitations for assessing the FBAR penalty for that period, according to the government. In 2019, the IRS assessed her a penalty for nonwillful failure to file FBARs, equal to $10,000 for each account in each year of the assessment.

In March, Bouskila settled with the Internal Revenue Service for an undisclosed amount in a separate case concerning the agency's seizure of $1.7 million from her offshore accounts, which the government said was intended to recoup tax liabilities she inherited from her late husband's financial interests.

Do You Have Undeclared Offshore Income?

 

Want to Know Which
Voluntary Disclosure Program
is Right for You? 

Contact the Tax Lawyers at 

Marini & Associates, P.A.   

for a FREE Tax Consultation 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