Tag Archive for Tax Blog

It’s Not The End of The World! Statutory Notice of Deficiency: Part 6

Taxpayer’s Other Payment Options

Determining other payment options for your client takes serious research, compilation of records and information, and then sitting the client down and having a coming to reality meeting with them. Of course, you already did all of this when reviewing for the case, but let’s do a quick review of the options and the statute tolling events:

1. The Fresh Start Initiative – Full Pay Installment Agreement or Partial Pay Installment Agreement
2. Offer in Compromise
3. Letting the CSED run and letting the levy be foreclosed Read More

Written by | Posted in Audit • Income Tax • Individual • Tax Tips

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 4 – 4.2.5)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis Of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution Of The Republic of South Africa

CHAPTER 4 – SECTION 195(1) OF THE CONSTITUTION AND PUBLIC ADMINISTRATION DUTIES WITH REFERENCE TO SECTIONS 74A AND 74B

4.2.5 Public administration must be accountable Read More

Written by | Posted in Africa • Audit

Ironclad Defenses To Quash IRS Summonses

What should you do if you (or your client) has been issued an IRS summons? Below is a hypothetical to provide guidance in defending against an IRS summons. Because these issues rise to the level of constitutional magnitude, specifically the fifth amendment privilege against self-incrimination, it is recommended that you consult with a criminal tax attorney.

The IRS has been investigating Sharon Michael for more than a year. Sharon is the president and sole shareholder of Michael’s, a high-end clothing manufacturing corporation. She travels extensively to Europe and Asia on business. On frequent trips through Zurich, she deposits large amounts of cash in an account at Grosser Schweizer Bank, which she refers to as her “retirement account.” Read More

Written by | Posted in IRS

The Unknown Tax Comic – Part 5

♦ Just taught my kids about taxes by eating 38% of their ice cream. Conan O’Brien

♦ Where do homeless tax accountants live? In a tax shelter.

♦ Receptionist: “There’s an invisible client in reception”.
Tax Accountant: “Tell them I’m sorry but I can’t see them today.”

♦ A tax accountant applies for the position of Chief Financial Officer. There are a number of candidates and he is called in for an interview. They ask him a number of questions and one of the panel suddenly says “What is nine multiplied by four?” He thinks quickly and says “Thirty five.” When the interview is over he goes outside, takes out his calculator and finds the correct answer is not thirty five. He thinks “Well, I blew that” and goes home very Read More

Written by | Posted in Tax Humor • TaxConnections

Tips For Surviving The Dreaded Eggshell Audit – Tip #8

Tip #8: Disabuse Your Client of the Notion That if the Audit Turns Criminal, He Can Just Pay Up and Move On

Your client will likely believe that if the audit turns criminal, that he can merely pay up and move on – with the expectation that the criminal problem will go away. It won’t. Payment of the tax won’t deflect a criminal investigation or prosecution. In appropriate cases, payment may permit your client to urge that he really wanted to pay the taxes that he owed all along and, when first advised that he may have underpaid, moved promptly to pay.

However, the government cannot generally accept that as a resolution of the criminal case. If it did, then every target would simply pay the tax. And the criminal enforcement Read More

Written by | Posted in Audit • Tax Tips

It’s Not The End of The World! Statutory Notice of Deficiency: Part 5

Collection Appeal Program (CAP) and Collection Due Process (CDP)

Assuming we have not been able to get involved before the case goes to collections, we start on a different path. There are very specific things the IRS must do, in order, on the correct time line, and document to be able to make collections against a taxpayer.

Again, assuming we are brought on board before time lines expire, the CAP is our first avenue of protest at this point. The CAP can be requested via Form 9423 before or after the filing of a NFTL, levy, or seizure, or upon rejection or termination of an installment agreement.

Once Appeals makes a decision regarding your case on a CAP hearing, that decision is Read More

Written by | Posted in Audit • Income Tax • Individual • Tax Tips

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 4 – 4.2.4)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis Of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution Of The Republic of South Africa

CHAPTER 4 – SECTION 195(1) OF THE CONSTITUTION AND PUBLIC ADMINISTRATION DUTIES WITH REFERENCE TO SECTIONS 74A AND 74B

4.2.4 Services must be provided impartially, fairly, equitably and without bias Read More

Written by | Posted in Africa • Audit

Employee or Independent Contractor For Tax Purposes?

Taxation is just one of many areas of law involved in disputing a workers status as either an employee or an independent contractor for the purposes of payroll taxes. Because of recent improvements in the exchange of information between federal and state agencies, one investigation into a workers status may trigger another. Or, a dispute by one worker can domino into additional disputes by other workers. If a business owner misclassified a workers status a number of years ago, it could be found responsible for significant federal and state employment tax deficiencies and penalties, as well as a variety of benefits if the worker sues and is ultimately determined to be an employee.

The IRS use the following list of 20 factors to examine the nature of the relationship between a business and a worker and make a determination between employee or Read More

Written by | Posted in Corporate

It’s Not The End of The World! Statutory Notice of Deficiency: Part 4

Judicial Review On A SNOD

The taxpayer has the option, as long as they are filing in a timely manner, to Petition the Tax Court when they receive a SNOD. Be sure the client understands that there is a filing fee, currently $60, and that they must either represent themselves or have a representative who is admitted to practice before the Court. For a non-attorney that means passing the U.S. Tax Court Practitioners Exam, the highest accreditation awarded to a Tax Professional. Let’s delve a little more deeply into the petition process.

The U.S. Tax Court allows taxpayers to file a Petition in the following cases under the “Small Cases” provision: Read More

Written by | Posted in Audit • Income Tax • Individual • Tax Tips

Tips For Surviving The Dreaded Eggshell Audit – Tip #7

Tip #7: Dealing With the Agent

Who Should Handle the Exam?

i. The Problem: Many accountants and enrolled agents are comfortable handling examinations and tax controversies. However, when an examination involves overtones of fraudulent or false statements, it is recommended that an attorney handle the examination.

ii. The Choices: There are several different methods for handling sensitive examinations:

1. The return preparer can appear and represent the client in the examination; Read More

Written by | Posted in Audit • Tax Tips

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 4 – 4.2.3)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis Of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution Of The Republic of South Africa

CHAPTER 4 – SECTION 195(1) OF THE CONSTITUTION AND PUBLIC ADMINISTRATION DUTIES WITH REFERENCE TO SECTIONS 74A AND 74B

4.2.3 High Standard of Professional Ethics Read More

Written by | Posted in Africa • Audit

It’s Not The End of The World! Statutory Notice of Deficiency: Part 3

Audit Reconsideration

Audit Reconsideration is allowed when you disagree with the results of only two specific events:

1. The assessment of tax liability by the IRS because of an audit of their filed return or
2. The assessment of a tax liability by the IRS because they have filed an SFR for the taxpayer.

This will usually occur when the case is still in the Examinations Division and is a much more informal version of a CAP. The IRS considers the Audit Reconsideration when there is information that was not considered in the original assessment. Representatives Read More

Written by | Posted in Audit • Income Tax • Individual • Tax Tips
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