Tax Controversies

Execution of Closing Agreement for Tax Return Preparer Penalties Waived Supervisory Approval Requirement

On behalf of Frost Law posted in on April 30, 2020.

Eli Noff, Esq., PartnerMary F. Lundstedt, Esq., Associate Generally, per Internal Revenue Code (IRC) §6751(b)(1), the Internal Revenue Service (IRS) is precluded from assessing a penalty unless the initial determination assessment “is personally approved (in writing) by the immediate supervisor of the individual making such determination or such higher level official as the Secretary may […]

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I.R.C. §280E: A Buzzkill for Those who Keep Poor Records

On behalf of Frost Law posted in on April 20, 2020.

Eli S. Noff, Esq. Partner Mary Lundstedt, Esq., Associate The recent Tax Court’s Alterman v. Commissioner [1] decision is a lesson in Accounting 101 for Cannabisseurs. Well, technically it’s a valuable lesson about record-keeping to all taxpayers who are subject to Internal Revenue Code (I.R.C.) §280E — but with the currently high audit rates for […]

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Offer in Compromise: Alternative to Collection?

On behalf of Frost Law posted in on April 20, 2020.

Mary Lundstedt, Esq.Rebecca Sheppard, Esq. Have you ever considered filing an offer in compromise with the IRS to “settle your debt for pennies on the dollar”? Until recently, filing an offer in compromise was believed to create an automatic hold on collection action–i.e., the IRS would not be able to levy your property once it […]

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Wesley Snipes Makes Offer the IRS can Refuse

On behalf of Frost Law posted in on April 20, 2020.

Eli S. Noff, Esq. CPA, PartnerMary F. Lundstedt, Esq., Associate Wesley Snipes and the IRS have been at odds for many years. From 1999 to 2001, Snipes simply didn’t file returns and failed to pay millions of dollars in taxes. For his part, Snipes has denied being a tax protestor; rather, he claims to have […]

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Untimely CDP Arguments Worth Consideration

On behalf of Frost Law posted in on April 20, 2020.

Eli Noff, Esq.,CPA, Partner Mary Lundstedt, Esq., Associate The taxpayer in Berkun v. Commissioner1 ultimately raised two collection due process arguments too late for consideration on appeal, but the Eleventh Circuit apparently found them worthy enough to highlight in a published opinion. Although the Eleventh Circuit uses a popular Seinfeld reference to describe its own […]

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Expecting a Refund of Your Overpaid Taxes?

On behalf of Frost Law posted in on April 20, 2020.

Mary Lundstedt, Esq. In Borenstein v. Commissioner, 149 T.C. No. 10 (Aug. 30, 2017), for the first time, the Tax Court has interpreted the final sentence of IRC §6512(b)(3) as applied to the fact pattern in this case. The Tax Court’s interpretation resulted in the taxpayer losing a significant refund for tax overpayments, because the […]

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District Court Maintains $100,000 Regulatory Cap for Willful FBAR Violations

On behalf of Frost Law posted in on April 20, 2020.

Mary Lundstedt, Esq., AssociateEli Noff, Esq., Partner On May 16, 2018, in United States v. Colliot,[1]the District Court for the Western District of Texas held that the Internal Revenue Service (IRS) is precluded from assessing a willful Report of Foreign Bank and Financial Accounts (FBAR) penalty exceeding the $100,000 limit provided in Federal Regulation (Reg.) […]

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Wynne Refund Interest Rates and Proper Jurisdiction

On behalf of Frost Law posted in on April 20, 2020.

Mary Lundstedt, Esq. On May 23, 2018, the Maryland Tax Court held that the Maryland legislature’s 2014 attempt to lower the interest rate for refunds resulting from the decision in Comptroller of the Treasury of Maryland v. Wynne [1] was unconstitutional.[2]As such, interest paid on Wynne refunds will be at a rate of 13 percent—the […]

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401(k) Distribution for First Home Purchase Included in Income and Subject to Penalty

On behalf of Frost Law posted in on April 20, 2020.

Eli Noff, Esq.,PartnerMary F. Lundstedt, Esq.,Associate On August 8, 2019, in Soltani-Amadi v. Commissioner,[1]the Tax Court determined that Taxpayer’s early distribution from her Internal Revenue Code (IRC) §401(k) retirement plan (401(k)) used for the purchase of her first home was includible in income and subject to the 10% early distribution penalty. This decision emphasizes the […]

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The Dispute Over Non-Willful FBAR Violation Calculations

On behalf of Frost Law posted in on April 17, 2020.

Eli Noff, Esq., PartnerMary F. Lundstedt, Esq., Associate Taxpayers must use FinCEN Form 114, Report of Foreign Bank and Financial Accounts(FBAR) to report their foreign accounts if the aggregate value of the accounts exceeds $10,000 anytime during the calendar year.[1]Before 2004, non—willful FBAR violators were not subject to a penalty. However, for non—willful violations on […]

Tags: Articles, Tax Controversies, Tax Crimes