Category Archives: criminal tax law

The U.S. Tax Court’s decision in Aiello v. Commissioner, T.C. Memo. 2025-46, delivered on May 15, 2025, provides important guidance on the strict application of filing deadlines in Collection Due Process (CDP) cases—even after the Supreme Court’s landmark Boechler decision opened the door to equitable tolling. The ruling underscores the high bar taxpayers must clear to excuse a late petition and reinforces the importance of timely action when challenging IRS collection determinations. 

The CDP Framework

Under Internal Revenue Code § 6330, taxpayers are entitled to a CDP hearing before the IRS can proceed with certain collection actions, such as levies. If dissatisfied with the IRS’s determination, taxpayers have 30 days from the date of the notice of determination to file a petition with the Tax Court for review. Missing this deadline can be fatal to a taxpayer’s case—unless the court finds grounds for equitable tolling.

The Aiello Case 

Virgil Joseph Aiello received a notice of determination following a CDP hearing. He filed his petition with the Tax Court after the 30-day statutory deadline had expired. Aiello argued that the court should excuse his late filing under the doctrine of equitable tolling, which allows courts to consider late petitions in rare circumstances where fairness demands it. 

Boechler and Equitable Tolling

The Supreme Court’s 2022 decision in Boechler, P.C. v. Commissioner clarified that the 30-day deadline for filing a CDP petition is not jurisdictional and may, in theory, be subject to equitable tolling. However, the Court also emphasized that equitable tolling is reserved for extraordinary situations—typically where a taxpayer has pursued their rights diligently but was prevented from filing on time due to circumstances beyond their control.

Tax Court’s Analysis and Decision 

In Aiello, the Tax Court carefully examined whether the facts justified equitable tolling. The court reiterated that:

    "Equitable tolling is available only in rare cases where the petitioner demonstrates both diligence in         pursuing their rights and that some extraordinary circumstance stood in their way and prevented             timely filing."

Upon reviewing Aiello’s situation, the court found no evidence of extraordinary circumstances or sufficient diligence to warrant relief. Routine mistakes, misunderstandings, or simple neglect do not meet the threshold for equitable tolling. As a result, the court dismissed Aiello’s petition as untimely. 

Implications and Takeaways

    ·         Strict Deadlines Remain the Norm: Despite the Supreme Court’s recognition of equitable                   tolling, the Tax Court has made clear it will grant such relief only in exceptional cases.

·         High Bar for Equitable Tolling: Taxpayers must show both diligent pursuit of their rights and extraordinary circumstances that directly caused the late filing.

·         Practical Advice: Taxpayers and their advisors should treat the 30-day deadline for CDP petitions as effectively mandatory, ensuring prompt action to preserve their rights.

Conclusion 

Aiello v. Commissioner reinforces that equitable tolling is not a safety net for routine oversights or delays in tax litigation. The Tax Court’s decision serves as a cautionary tale: missing a statutory deadline in a CDP case will almost always result in dismissal unless truly extraordinary circumstances are present and well documented.

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

Sources:

1.       http://www.smbiz.com/sbtc25.html

2.      https://www.linkedin.com/company/the-wealth-strategies-journal    

3.      https://www.currentfederaltaxdevelopments.com/blog/2025/1/17/tax-court-rejects-equitable-tolling-in-untimely-cdp-petition  

4.      https://taxprof.typepad.com/taxprof_blog/2025/05/lesson-from-the-tax-court-no-equitable-tolling-for-brain-farts.html 

5.       https://www.leagle.com/decision/intco20250515e00     

6.      http://www.smbiz.com/sbtc25.html     

Read more at: Tax Times blog

In a landmark decision, the U.S. Court of International Trade has struck down several of former President Donald Trump’s most sweeping tariffs, ruling that he overstepped his authority under the International Emergency Economic Powers Act (IEEPA). The three-judge panel found that the 1977 law does not give the president “unbounded authority” to impose tariffs on goods from nearly every country, a move that has been celebrated by small businesses and a coalition of 12 states that challenged the tariffs in court.

The tariffs in question included the so-called “trafficking,” “worldwide,” and “retaliatory” tariffs. These measures imposed steep duties, 25% on Mexican and Canadian products, 20% on Chinese goods, and a general 10% duty on all imports from U.S. trading partners, with even higher rates for some countries. Trump’s administration had argued these tariffs were necessary to address threats from international criminal cartels and to respond to what it called a “lack of reciprocity” in trade relationships. 

The judges made clear that while IEEPA allows the president to act in response to a declared national emergency, any authority it confers is subject to “meaningful limits” and cannot be used as a blank check for sweeping trade actions. The panel further noted that an unlimited delegation of tariff authority would be unconstitutional, citing the separation of powers and doctrines that prevent Congress from handing over its core legislative functions without clear boundaries.

State attorneys general and small business plaintiffs hailed the ruling as a major victory for the rule of law and for American families and businesses. Oregon Attorney General Dan Rayfield stated that the tariffs had “triggered retaliatory measures, inflated prices on essential goods, and placed an unfair burden on American families, small businesses and manufacturers.” New York Attorney General Letitia James echoed this sentiment, calling the tariffs “a massive tax hike” that would have led to more inflation and job losses if allowed to continue.

On the other side, the Trump administration defended its actions, arguing that persistent trade deficits and foreign countries’ nonreciprocal treatment of the U.S. constituted a national emergency. 

The court’s decision not only vacates the challenged tariff orders but also permanently blocks their operation. While the plaintiffs’ request for a preliminary injunction was denied as moot, the ruling sends a strong message about the limits of presidential power in trade policy. It also sets a precedent that could shape future administrations’ use of emergency powers in economic matters.

Ultimately, this case underscores the enduring importance of constitutional checks and balances. By reaffirming Congress’s primary role in setting tariff policy, the court has drawn a clear line against executive overreach, reminding all branches of government that even in times of perceived crisis, the law and the Constitution remain paramount.

Have a Constitutional Law Problem?

 

for a FREE Tax Consultation

at www.TaxAid.us or www.TaxLaw.ms

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

 

Sources:

1.     https://www.law360.com/tax-authority/federal/articles/2346278?nl_pk=c7e157db-9214-4c8a-8304-373a69b1532e&utm_source=newsletter&utm_medium=email&utm_campaign=tax-authority/federal&utm_content=2025-05-29&read_main=1&nlsidx=0&nlaidx=1   

2.      https://www.nytimes.com/2025/05/28/business/trump-tariffs-blocked-federal-court.html            

3.      https://www.businessinsider.com/donald-trump-tariffs-blocked-federal-court-2025-5         

4.      https://www.aljazeera.com/economy/2025/5/29/us-trade-court-rules-trumps-sweeping-global-tariffs-are-unlawful 

5.    https://www.politico.com/news/2025/05/28/federal-court-strikes-down-trumps-april-2-tariffs-00373843  

Read more at: Tax Times blog

If you’re a Florida business owner, the thought of a tax audit from the Florida Department of Revenue (DOR) might make you uneasy. But the reality is, an audit isn’t always a bad thing if you are prepared which will make the process much smoother. Here’s what you need to know if you receive that official audit notice.

Why Does the Florida Department of Revenue Audit Businesses?

First, let’s clear up a common misconception: not all audits are triggered by suspicion of wrongdoing. In fact, most are routine. 

How Are Businesses Selected for Audit?

Selection for a Florida tax audit can happen in several ways:

·         Information sharing with the IRS or other states

·         Random computer selection

·         Analysis of your Florida tax returns

·         Industry publications and directories

So, if you’re selected, it doesn’t necessarily mean you’ve done anything wrong.

How to Prepare for a Florida Tax Audit

·         Keep your records organized and up to date.

·         Respond promptly to DOR requests.

·        Communicate openly with the auditor and ask questions.

·        Consult a tax professional, preferably an experienced tax attorney, if you’re unsure about anything.

The Audit Process: Step by Step

1. Notification

You’ll receive a “Notice of Intent to Audit Books and Records” (Form DR-840). This document tells you which taxes and periods are under review. You’ll also get a list of records you’ll need to provide.

2. Desk vs. Field Audit

·         Desk Audit: Conducted at the DOR office; you mail or upload your records.

·         Field Audit: Conducted at your business location; the auditor comes to you.

3. What Records Will You Need?

Be prepared to provide:

·         Federal and Florida tax returns

·         General ledgers and journals

·         Depreciation schedules

·         Cash receipt and disbursement journals

·         Purchase and sales journals

·         Sales tax exemption or resale certificates

Tip: Florida law requires you to keep records for at least three years. If you can’t provide records, the DOR will estimate your tax liability based on whatever information is available.

4. The Audit Itself

The auditor may interview you or your representative (if you want someone else to handle it, file a Power of Attorney form). They’ll ask about your business structure, accounting systems, and day-to-day operations.

Pro Tip: Assign a knowledgeable employee to assist the auditor and help gather records. Well-organized documentation can make the process much easier and faster.

5. Your Rights During the Audit

You have the right to:

·         Be informed about the audit’s findings and any proposed changes

·         Ask questions and get clear explanations

·         Have your representative, preferably an experienced tax attorney, present .

After the Audit: What Happens Next?

Once the audit is complete, you’ll receive a summary of the findings. If you owe additional taxes, you’ll get a Notice of Proposed Assessment. You’ll have 30 days to review and respond before any payment is due.

But remember: not all audits result in extra taxes. Sometimes, the auditor will find that everything is in order or even that you’re due a refund.

What to Do If You Disagree with the Audit Findings

If you disagree with the results of a tax audit, you have the right to challenge the findings. Here’s how:

1. Request a Reconsideration: Provide additional evidence or clarification to the FDOR to address the discrepancies.

2. File an Appeal: If the reconsideration doesn’t resolve the issue, you can file an appeal with the Florida Division of Administrative Hearings.

3. Seek Legal Counsel: Engage a tax attorney to represent you in disputes and ensure your rights are protected.

Conclusion

A Florida tax audit can feel overwhelming, but with proper preparation and a proactive approach, you can navigate the process with confidence. Understanding why audits occur, knowing what to expect, and taking the necessary steps to prepare, including hiring an experienced Tax Attorney, is critical to ensuring a favorable outcome.

By cooperating with auditors and seeking professional guidance when needed, you can emerge from the audit process with minimal disruption to your personal or business finances.

Are You Being Audited by the
Florida Department of Revenue (FDOR)?

Contact the Tax Lawyers at 

Marini & Associates, P.A.

 

for a FREE Tax Consultation

at www.TaxAid.us or www.TaxLaw.ms

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

 

Read more at: Tax Times blog

According to Law360, the U.S. Tax Court decided on May 19, 2025, in Garcia v. Commissioner, docket number 27496-22P, for the first time that its review of a challenge to an IRS certification of tax debt as "seriously delinquent" is not limited to the agency's administrative record, saying a trial is needed in a man's case to determine the facts.

In the ruling, the full Tax Court rejected the Internal Revenue Service's request to find through summary judgment that the agency correctly certified the $130,000 tax debt of Alberto Garcia Jr. as seriously delinquent under Internal Revenue Code Section 7345(a), a designation that can cause a taxpayer's passport to be revoked.

Garcia argued that his tax liabilities, dating to 2005 through 2008, were unenforceable because they were so old and therefore couldn't constitute a seriously delinquent debt under the law. 

The IRS countered that the agency qualified for an exception to the 10-year time limit on collections because Garcia's liabilities had been reduced to judgment by a federal court within the proper time frame. 

Because He Was Never Served With The Lawsuit.

The court said the case tasked it with deciding an issue of first impression. As Judge Emin Toro framed it in writing the opinion for the court: "What is the scope of our review or, put differently, on what evidence do we determine whether the commissioner's certification that a seriously delinquent tax debt exists is correct?"

The court concluded that the text of the law and the court's precedents require it to review the case from the beginning, or "de novo," meaning that the review must include evidence introduced at trial.

"Because Mr. Garcia raises a genuine issue of material fact as to whether he was served in the district court suit, we cannot conclude at this stage of the proceedings that the liabilities at issue are legally enforceable," Judge Toro said.

If You Have Serious Delinquent IRS Debt, You Should Consult with Experienced Tax Attorneys, As There Are Several Ways Taxpayers Can Avoid Having the IRS Request That the State Department Revoke Your Passport. 

  Want To Keep Your US Passport?
 

 

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