IRS

QBI Guidance Issued; Safe Harbor Provided for Real Estate Enterprises

On behalf of Frost Law posted in on April 23, 2020.

Eli S. Noff, Esq. CPA, PartnerMary Lundstedt, Esq., Associate As we detailed in Section 199A: New 20% Pass-Through Deduction1, the Tax Cuts and Jobs Act of 2017 created new Internal Revenue Code §199A-providing a significant tax break to flow-through entities and structures. Subject to certain limitations, many eligible taxpayers (excluding C corporations) may deduct up […]

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Form 4340 is Sufficient Corroborating Evidence Proving Issuance of Notice of Deficiency

On behalf of Frost Law posted in on April 23, 2020.

Eli S. Noff, Esq. CPA, PartnerMary Lundstedt, Esq., Associate On January 28, 2018, the court in U.S. v. Meyer,1considered a challenge to the proper mailing of Notices of Deficiency for two tax years and found Form 4340 sufficient as corroborating evidence for both years. Background A deficiency assessment results from the Internal Revenue Service’s (IRS) […]

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Audit of the Offshore Voluntary Disclosure Program

On behalf of Frost Law posted in on April 23, 2020.

The Treasury Inspector General for Tax Administration (“TIGTA”) completed an audit of the Offshore Voluntary Disclosure Program (“OVDP”). US citizens are taxed on their worldwide income and must report bank accounts when their aggregate balance exceeds $10,000. The OVDP and other similar programs allow taxpayers a mechanism to come forward and get into compliance with […]

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Credit Suisse Hearings focus attention on Foreign Bank Accounts

On behalf of Frost Law posted in on April 23, 2020.

The chief executive of Credit Suisse recently appeared in front of a Senate subcommittee to answer questions related to the bank’s role in aiding tax evasion. A similar hearing in 2008 resulted in a $780 million fine for Swiss bank UBS after the bank admitted helping U.S. taxpayers shield assets to avoid taxes. In conjunction […]

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The Foreign Account Tax Compliance Act: What is FATCA?

On behalf of Frost Law posted in on April 23, 2020.

Eli S. Noff, Esq.,CPA, PartnerMary Lundstedt, Esq., Associate Brent Conrad In an effort to reduce persistent high unemployment rates resulting from the 2008 financial crisis, President Obama signed The Hiring Incentives to Restore Employment Act of 2010 (HIRE Act)1to incentivize employers to hire and retain workers. Tax incentives provided in the HIRE Act included: (1) […]

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Innocent Spouse Relief (IRC §6015)

On behalf of Frost Law posted in on April 23, 2020.

Eli S. Noff, Esq., CPA, PartnerMary F. Lundstedt, Esq., Associate Under Internal Revenue Code (IRC) §6013(d)(3), spouses who file joint income tax returns are subject to joint and several liability for the income tax reported on those returns. In other words, the IRS will hold each spouse responsible for the entire amount of tax due. […]

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United States v. Garrity: Clarifies Standard of Proof and Establishing Willfulness in FBAR Context

On behalf of Frost Law posted in on April 23, 2020.

Eli Noff, Esq., PartnerMary Lundstedt, Esq. On April 3, 2018, inUnited States v. Garrity, the U.S. District Court for the District of Connecticut considered the Government’s suit to reduce to judgment a willful Report of Foreign Bank and Financial Accounts (FBAR) penalty and determined that: (1) the burden of proof is preponderance of evidence, and […]

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Virtual and Economic Contacts Establish Nexus for Sales Tax

On behalf of Frost Law posted in on April 22, 2020.

Eli Noff, PartnerMary Lundstedt, Esq. On June 21, 2018, the Supreme Court delivered its highly anticipated decision in South Dakota v. Wayfair, Inc., et al.[1]The 5-4 decision discards the antiquated “physical presence rule” — a rule which has allowed retailers lacking a physical presence in a state to avoid any obligation to collect and remit […]

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IRS Announces Major Expansion of Offer in Compromise Program

On behalf of Frost Law posted in on April 22, 2020.

The Internal Revenue Service recently announced a major expansion of its Offer in Compromise program, which is aimed at helping individuals with past-due to taxes to pay off their debts to the IRS. Taxpayers who participate in the program are permitted to settle their tax debts for less than they owe if they are unable […]

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Updated Guidance for IRS Voluntary Disclosure Practice

On behalf of Frost Law posted in on April 22, 2020.

Eli S. Noff, Esq., CPA, PartnerMary Lundstedt, Esq., Associate The objective of the recently expired Offshore Voluntary Disclosure Program (OVDP) enabled willful U.S. taxpayers with undisclosed foreign assets to become compliant with U.S. tax laws, while concurrently avoiding serious statutory civil penalties and practically removing any risk of criminal prosecution. On November 29, 2018, the […]

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