As published in the Winter Park/Maitland Observer, Thursday Jan. 3, 2012 Edition Offers... Read More »
Omitted Income, Accuracy Related Penalty and Reasonable Cause
Russ Fox over at Taxable Talk says that the Tax Court upheld an accuracy related penalty against a taxpayer even though the deficiency arose because his tax preparer failed to report a 1099 on his tax return: Everyone is human. Sometimes we forget that 1099 on the tax return. Today, the Tax Court looked at a case where a…
Read Full Article Categorized in: Court Cases, IRS PenaltiesFBAR Penalties Absurd, Unfair
Joe Kristan has a nice little post about the absurd FBAR penalties: Another inspiring tale of international tax enforcement from Phil Hodgen: I’m 33 and single, I’ve been living in France for 13 years, am naturalized French (and born American). I had NO idea about these reports until I started searching on tax information for stock…
Read Full Article Categorized in: International Taxation, IRS Penalties11th Circuit Case: Tax Preparer Escapes IRS Death Penalty
I hope you’re paying attention Mr. Laskey. John Pacenti of Law.com reports: The 11th U.S. Circuit Court of Appeals, with retired U.S. Supreme Court Justice Sandra Day O’Connor writing for a three-judge panel, upheld a district court order that the IRS was not entitled to shut down [Abelardo Ernest] Cruz’s tax preparation company, Nations Business…
Read Full Article Categorized in: Court Cases, Regulation of Tax PreparersIRS Substantial Understatement Penalty
§6672 of the Internal Revenue Code imposes a 20% penalty on a taxpayer’s substantial understatement of income tax: (d) Substantial understatement of income tax (1) Substantial understatement (A) In general For purposes of this section, there is a substantial understatement of income tax for any taxable year if the amount of the understatement for the…
Read Full Article Categorized in: PenaltiesTax Court Update – January 2009 – Section 6673 “Delay” Penalty
John Charles Vuckovich v. Commissioner of Internal Revenue – Here the taxpayer sued the IRS for inappropriately filing a federal tax lien against him. The fact pattern is a familiar one: The taxpayer failed to file tax returns and the IRS prepared returns for him based on available evidence. After the expiration of the Notice of Deficiency,…
Read Full Article Categorized in: Back Taxes, Court Cases, IRS Penalties