Taxing, Briefly
Abuse of Discretion

The IRS Collection Process – Taxing, Briefly

The Basic Principles of the IRS Collection Process In our previous post, we discussed how audits are performed and your available options throughout the examination process.  Once the audit is complete, and all administrative and legal remedies are exhausted, how does the IRS actually collect taxes?  The first step in the IRS collection process is assessment. The IRS cannot collect a tax until it has assessed it. There are a bevy of rules surrounding assessments. 

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Procedural Issues
Assessable Penalties

Current Developments on Prior Written Supervisory Approval under IRC § 6751(b)(1)

The Statute No penalty under the Code[1] may be assessed unless the initial determination of such assessment is personally approved in writing by the immediate supervisor of the individual/agent making such determination (or another appropriate higher-level official).[2] This approval requirement, introduced in 1998, was the subject of only three substantial decisions prior to 2020. This year, however, was a boon for taxpayers, and the full opinions of the Tax Court defined the metes and bounds

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Adequate Disclosure

A Comprehensive Guide to Preparer Penalties

Preparer penalties are like poison ivy. They lurk around every corner, and despite your best efforts, even the slightest step off the path of (tax return) righteousness can lead to a wholly uncomfortable time.  This article provides a comprehensive, step-by-step analysis of each of the preparer penalties under the Code, both civil and, yes, even criminal and examines, where possible, how to avoid them (after the fact – sort of like an administrative calamine lotion).

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Income Tax Issues
Assessable Penalties

Filing Joint Returns Under IRC § 6013 – Consequences and Benefits

IRC § 6013 permits the filing of joint returns by spouses. It should be noted that the Code has not adapted to the times, and it still lists “husbands and wives” as the only persons who may make a single return jointly. For purposes of equality and inclusion, and to stick it to the patriarchy, I will use the term spouses. The most interesting aspect of IRC § 6013 is the ability for a delinquent

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Assessable Penalties

Sun River Financial Trust v. Commissioner (T.C. Memo. 2020-30)

On March 5, 2020, the Tax Court issued a Memorandum Opinion in the case of Sun River Financial Trust v. Commissioner (T.C. Memo. 2020-30). The single issue presented in Sun River Financial Trust was whether the IRS abused its discretion in sustaining a proposed levy and the filing of a notice of Federal tax lien (NFTL) with respect to petitioner’s unpaid IRC § 6702 (frivolous return) penalties for 2010 and 2011.

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"Penalty" Means "Penalty"

Chadwick v. Commissioner (154 T.C. No. 5)

On January 21, 2020, the Tax Court issued its opinion in Chadwick v. Commissioner, 154 T.C. No. 5. The issue presented in Chadwick was whether the penalty assessable pursuant to IRC § 6672(a) (the Trust Fund Recovery Penalty or TFRP) was subject to the requirement that written supervisory approval be secured at the initial determination of such assessment pursuant to IRC § 6751(b)(1). The IRC § 6672(a) Trust Fund Recovery Penalty is…Wait for It…a Penalty

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"Penalty" Means "Penalty"

Laidlaw’s Harley Davidson Sales Inc. v. Commissioner (154 T.C. No. 4)

On January 16, 2020, the Tax Court issued its opinion in Laidlaw’s Harley Davidson Sales, Inc. v. Commissioner, 154 T.C. No. 4. The issue presented in Laidlaw’s Harley Davidson was whether the written supervisory approval requirement of IRC § 6751(b)(1) applied to the assessable penalty imposed by IRC § 6707A (failure to disclose a reportable transaction). 30-Day Letter Triggered IRC § 6751(b)(1) Supervisory Approval Requirement The petitioner in Laidlaw’s Harley Davidson received a 30-day letter, which notified

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The IRS Collection Process – Taxing, Briefly

The Basic Principles of the IRS Collection Process In our previous post, we discussed how audits are performed and your available options throughout the examination process.  Once the audit is complete, and all administrative and legal remedies are exhausted, how does the IRS actually collect taxes?  The first step in

Read More »

A Comprehensive Guide to Preparer Penalties

Preparer penalties are like poison ivy. They lurk around every corner, and despite your best efforts, even the slightest step off the path of (tax return) righteousness can lead to a wholly uncomfortable time.  This article provides a comprehensive, step-by-step analysis of each of the preparer penalties under the Code,

Read More »

Sun River Financial Trust v. Commissioner (T.C. Memo. 2020-30)

On March 5, 2020, the Tax Court issued a Memorandum Opinion in the case of Sun River Financial Trust v. Commissioner (T.C. Memo. 2020-30). The single issue presented in Sun River Financial Trust was whether the IRS abused its discretion in sustaining a proposed levy and the filing of a

Read More »

Chadwick v. Commissioner (154 T.C. No. 5)

On January 21, 2020, the Tax Court issued its opinion in Chadwick v. Commissioner, 154 T.C. No. 5. The issue presented in Chadwick was whether the penalty assessable pursuant to IRC § 6672(a) (the Trust Fund Recovery Penalty or TFRP) was subject to the requirement that written supervisory approval be

Read More »

Laidlaw’s Harley Davidson Sales Inc. v. Commissioner (154 T.C. No. 4)

On January 16, 2020, the Tax Court issued its opinion in Laidlaw’s Harley Davidson Sales, Inc. v. Commissioner, 154 T.C. No. 4. The issue presented in Laidlaw’s Harley Davidson was whether the written supervisory approval requirement of IRC § 6751(b)(1) applied to the assessable penalty imposed by IRC § 6707A (failure to

Read More »