Category Archives: criminal tax law

TIGTA issued a report on September 25, 2024, stating that over the last decade, the IRS has faced a decline in staffing levels which has affected its ability to fulfill its mission. 

TIGTA discussed that the IRS has been granted multiple authorities to expedite hiring and fill job vacancies when a critical hiring need or a severe shortage of candidates exists.  However, from October 1, 2021, to September 30, 2023, the IRS processed nearly 53,000 new hires, despite delays in the hiring process which resulted from workload constraints and  miscommunication, security checks exceeding their targeted completion time, and limitations in the IRS’s hiring management system.

In FY 2022, There Were Almost 22,000 New Hires And Approximately 31,000 New Hires In FY 2023, Which

Represents A 41 Percent Increase In Hiring.

TIGTA also found that nearly 19,000 of these new hires exceeded the Office of Personnel Management’s 80-calendar day target hiring time. 

So while the IRS has been hampered from auditing noncompliant US taxpayers, they appear to be well underway toward staffing up and obtaining sufficient Personnel to complete the part of its purpose of ensuring the integrity of the tax system.

The IRS conducts audits primarily to ensure compliance with tax laws and to verify that taxpayers have reported their income and deductions accurately. Audits serve several purposes:

1. Ensuring Accuracy: Audits help verify that taxpayers have reported their income correctly and claimed only the deductions and credits they are entitled to under the law.

2. Detecting Errors: They help identify errors, discrepancies, or inconsistencies in tax returns that may result in underpayment or overpayment of taxes.

3. Preventing Fraud: Audits help detect and prevent fraudulent activities, such as underreporting income or claiming false deductions.

4. Educational Purposes: They can also serve an educational role, helping taxpayers understand their tax obligations better and how to comply with tax laws.

5. Maintaining Public Confidence: By enforcing tax laws fairly and consistently, audits help maintain public confidence in the tax system.

Overall, audits are a way for the IRS to ensure that taxpayers are paying their fair share of taxes according to the law.

 Are Your US Taxes In Order?

      If No

 

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

TIGTA released Report Number:  2024-300-056  -  2024 Statutory Review of Compliance With Legal Guidelines When Issuing Levies and reviewed levies issued by Field Collection revenue officers for more than 48,000 taxpayers during the period July 1, 2022, through June 30, 2023.  

They found that IRS generally complied with legal and administrative requirements.  However, TIGTA identified more than 1,900 instances of noncompliance that resulted in potential violations of taxpayers’ rights or taxpayers being burdened, including:

Furthermore, they found that Appeals officers only verify that the taxpayer received timely notice of the lien or levy and were willing to address any issues raised by the taxpayer.  For each hearing case, the Appeals officer is required to attest that they independently obtained verification that the requirements of all applicable law or administrative procedures were met. TIGTA believes that  Appeals officers should also independently verify whether the IRS took prohibited levy action on the tax modules subject to the hearing. TIGTA made nine recommendations to help improve the proper issuance of levies by the IRS, including that the IRS should revise the Internal Revenue Manual to require revenue officers to check their mail and faxes for any CDP levy hearing requests prior to issuing levies; implement several different programming fixes to ensure that the Integrated Collection System does not allow levies to be issued improperly; and contact taxpayers who were not given the opportunity for a CDP levy hearing, if appropriate, and obtain authorization to retain any improper levy proceeds or refund the proceeds to the taxpayer. IRS management agreed with all nine recommendations and plans to take corrective action.  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

We all heard the ads regarding Settling IRS Tax Debt For Penalties on the Dollar . 

In IR-2024-243, The Internal Revenue Service reminds taxpayers to beware of promoters claiming their services are necessary to resolve unpaid taxes owed to the IRS while charging excessive fees, often with no results.

"Taxpayers should be cautious of aggressive marketing that can mislead them,” said IRS Commissioner

These unscrupulous “mills” use aggressive marketing to make false claims of guaranteed settlements for “pennies-on-the-dollar,” or will say there’s a limited window of time to resolve tax debts through the IRS Offer in Compromise (OIC) program.

"Taxpayers should be cautious of aggressive marketing that can mislead them,” said IRS Commissioner.

“Many OIC Mills Charge Steep Fees,
Give False Assurances and
Can Take Advantage of Taxpayers
With Empty Promises That Their Tax
Debt Will Disappear.
The Result Is Often Good Money Paid For Bad Results”

An OIC is a legitimate IRS program that allows qualifying taxpayers to work with the IRS to settle a tax debt for less than the full amount owed. It is a possible option for those who are unable to pay their full tax liability, or if doing so creates a financial hardship. In determining eligibility, the IRS considers the taxpayer’s unique situation, income and equity in assets. The OIC agreement occurs directly between the taxpayer and the IRS.

Beware of empty promises and steep costs

OIC is a valuable program that helps taxpayers with their federal tax debts, and some companies offer legitimate services to help taxpayers file a request. However, some companies running OIC mills will heavily advertise their dubious promises to settle taxpayer debt at steep discounts. They usually charge excessive fees for a service taxpayers could have obtained themselves directly from the IRS.

OIC mills make a perennial appearance on the IRS' annual Dirty Dozen list of scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal information, data and more.

Learn more about an OIC

The IRS can help taxpayers pursue the Offer in Compromise program on their own, without the help of these unscrupulous OIC mills. IRS.gov is a good first stop for taxpayers facing a tax debt where they can learn more about the OIC program and whether they qualify. While not all taxpayers will meet the technical requirements for an OIC, learning if an individual qualifies is as easy as using the IRS's Offer in Compromise Pre-Qualifier tool. Individual taxpayers may also check their OIC eligibility via Individual Online Account.

The IRS has a new playlist video series on offer in compromise to educate on scam awareness.

Other options for payment

While some people will not qualify for an OIC, most taxpayers do qualify for an IRS payment plan (or installment agreement) and can use the online payment agreement (OPA) to set it up to pay off a balance over time. Taxpayers receive immediate notification of whether the IRS has approved their payment plan when they apply online.

Individual taxpayer payment plan options online include:

• Short-term payment plans – For taxpayers who have a total balance less than $100,000 in combined tax, penalties and interest. This plan gives them an extra 180 days to pay the balance in full.
• Long-term payment plan – For taxpayers who have a total balance less than $50,000 in combined tax, penalties and interest. They can make monthly payments for up to 72 months.

The IRS also reminds taxpayers about the first-time penalty abatement policy for administrative relief from a penalty that would otherwise be added to their tax debt.

Have REAL IRS Tax Problems?

Get REAL Tax Attorneys!   

  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

On July 3, 2024 we posted Think About Adding "I Think We're Certainly Going To Be Dealing With Loper Bright Being Raised In Virtually Every Case For Quite A While," She Said., where we discussed that Our previous post on July 2, 2024 The Demise of Chevron Will Result In Increased Treasury Regulation Challenges, which discussed the demise of Chevron deference as "misguided because agencies have no special competence in resolving statutory ambiguities. Courts do," the Supreme Court's majority opinion said in  Loper Bright case and a similar one called Relentless v. Department of Commer. We then went on to discuss the the US Supreme Court decided Corner Post, Inc. v. Board of Governors of the Federal Reserve System further exposes regulations to challenge.

Now According to Law360, the U.S. Department of Justice's Tax Division is seeing its casework flooded with taxpayer arguments citing the U.S. Supreme Court's decision in Loper Bright overturning the Chevron doctrine, and that's not likely to change soon, a division chief said on September 23, 2024.

Taxpayers are citing the Supreme Court's decision in Loper Bright, which struck down the Chevron doctrine giving agencies wide leeway in writing regulations, whether they even involve challenges to regulations, said Francesca Ugolini, chief of the DOJ tax division's appellate section. She spoke during the American Bar Association Section of Taxation's fall meeting, held online.

"I Think We're Certainly Going To Be Dealing
With Loper Bright Being Raised In Virtually

In Loper Bright, the high court's 6-3 majority tossed aside the Chevron doctrine, which instructed courts to defer to agencies' analyses in interpreting ambiguous statutes in regulations. The U.S. Supreme Court established the doctrine in its 1984 decision in Chevron v. Natural Resources Defense Council.

Ugolini said the DOJ's tax division had expected for years that the Chevron doctrine could meet its end, and that the division made a strategic shift years ago to rely more on the statute.

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