What must be proven in a Tax Evasion Charge?

On behalf of Frost Law posted in on October 16, 2015.

In a recent post, we discussed whether accounting errors might lead to criminal tax charges. Today, we take a closer look at the specific crime of tax evasion. The Internal Revenue Code at Section 7201 defines tax evasion as a willful act and elevates the criminal consequences to a felony. Yet how can willfulness be […]

Tags: Blog, Tax Evasion

Does E-filing Reduce the Risk of an Audit?

On behalf of Frost Law posted in on October 9, 2015.

Some tax preparation and e-filing providers may market their product as a potential safeguard against IRS audits. For example, TurboTax includes a page on its website devoted to the top five ways to avoid a tax audit, one of which is ensuring accurate figures with the help of a program like TurboTax. Such promotional materials […]

Tags: Audits, Blog

Can Major Accounting Errors Result in Criminal Tax Charges?

On behalf of Frost Law posted in on October 2, 2015.

An accounting error might lead not only to a tax dispute, but charges of fraud. In a recent example, a corporation offered $1.5 million to settle charges of accounting fraud brought by the U.S. Securities and Exchange Commission. The SEC became involved because of the effect the accounting error had on the corporation’s shareholders. According […]

Tags: Tax Crimes, Business Law, Blog

Are Educational Deductions Contributing to Tax Controversies?

On behalf of Frost Law posted in on September 25, 2015.

With another academic year in full swing, readers may have questions about the tax implications of college expenses. The Internal Revenue Service offers some guidance in IRS Publication 970. However, taxpayers who itemize their deductions rather than claiming the standard deduction may appreciate the clarity that a tax attorney can bring to the table. For […]

Tags: Tax Controversies, Blog

Does the IRS Accept a Majority of Offers in Compromise?

On behalf of Frost Law posted in on September 18, 2015.

The Internal Revenue Service has an official program for accepting settlement offers, called an Offer in Compromise (OIC). However, a recent article reminds us that there is no guarantee that an IRS agent will accept an OIC. In fact, less than one-third of all OIC’s are accepted. As an attorney and certified public accountant that […]

Tags: IRS, Blog

What is the Difference Between Tax Negligence and Fraud?

On behalf of Frost Law posted in on September 11, 2015.

Readers may have questions about when a tax mistake rises to the level of tax evasion or fraud. As a preliminary matter, it should be noted that even the Internal Revenue Service acknowledges the complexity of the tax code. By the agency’s own estimate, about 17 percent of taxpayers fail to comply with applicable tax […]

Tags: IRS, Tax Evasion, Tax Crimes, Blog

What Issues will be on the IRS’ Audit Radar for 2016?

On behalf of Frost Law posted in on September 4, 2015.

Is there a benefit to combining a public account certification with expertise in tax law? When it comes to defending against IRS audits, you bet your bottom dollar. Specifically, a recent article’s prediction of the top tax issues for 2016 describes the new reporting requirements of the Affordable Care Act on Forms 1095-B and 1095-C. […]

Tags: IRS, Blog

Can Tax Litigation Help When an Offer In Compromise Fails?

On behalf of Frost Law posted in on August 27, 2015.

If a taxpayer receives a letter from the Internal Revenue Service regarding an alleged tax debt, is there any hope for settlement? As an attorney that focuses on tax law, I know that tax litigation is sometimes the best forum for challenging a tax controversy, especially when a settlement is unlikely. The official criteria by […]

Tags: Tax Controversies, Blog

Does Taking the IRS to Court Hurt Your Chances of Settlement?

On behalf of Frost Law posted in on August 22, 2015.

Whether you own a small business, are reporting individual income taxes, or have recently received an inheritance, chances are that you will have to file a return with the Internal Revenue Service. Each of those contexts, unfortunately, presents the opportunity for a potential IRS dispute. In a recent example, the estate of the late owner […]

Tags: IRS, Blog

Are Americans Vulnerable to Tax Scams?

On behalf of Frost Law posted in on August 14, 2015.

The Internal Revenue Service recently issued a warning against tax scams. The problem is more widespread than readers may realize: almost 4,000 Americans may already have lost over $20 million due to such deceitful tactics. How could such fraud happen? One method of contact may be via written correspondence on authentic looking letterhead. Notably, those […]

Tags: Tax Topics, Tax Crimes, Blog