Eli Noff, Esq., Partner On November 19, 2019, in Sullivan v. Commissioner,[1] the Tax Court held that the IRS settlement officer (SO) did not abuse discretion in sustaining levies for Harvard law professor (Taxpayer) who had not filed tax returns from 2005-2013, and who subsequently neglected to provide the IRS with any financial documents. Taxpayers […]

Eli Noff, Esq., Partner A recent IRS whistleblower case clarifies when the Tax Court is authorized to review the IRS Whistleblower Office (WBO)’s actions or inactions when it receives a whistleblower’s complaint. In Lacey v. Commissioner,1 taxpayer submitted a whistleblower claim alleging that oil company BP improperly deducted approximately $12.9 billion when it falsely claimed […]

Eli Noff, Esq., Partner EXECUTIVE SUMMARY New Act Provides Key Business Extenders: New Act Provides Key Individual Extenders: On December 20, 2019, the president enacted the Further Consolidated Appropriations Act, 2020 (FCAA).[1]Although it primarily acts to avoid a government shutdown by funding the government through September 30, FCAA includes numerous notable tax law changes, including […]

Eli Noff, Esq., Partner On January 21, 2020, in Chadwick v. Commissioner, the Tax Court determined that the initial determination of TFRP assessment requires written supervisory approval[1]Interestingly, the Tax Court had not previously resolved the question of whether Internal Revenue Code (IRC) §6751(b)(1) (preventing the IRS from assessing a penalty unless its initial determination has […]

Eli Noff, Esq., Partner Executive Summary Taxpayers who are delinquent with their IRS taxes all too often find themselves facing rapidly accruing interest and penalties, which snowball into dismally high amounts. As the case discussed below indicates, when delinquent taxpayers and the IRS have repeatedly failed to resolve a matter, the IRS can file an […]

Leanne Broyles, Esq., Associate Executive Summary Proper interpretation of will provision regarding whether estate may claim $2.25 million that passed to spouse as marital deduction to decedent’s gross estate depends on what terms of the will say-not the intent the terms may suggest. Tax Court is only authorized to waive interest and penalties for reasonable […]

Eli Noff, Esq., Partner EXECUTIVE SUMMARY Although frequently overlooked, the international reporting form, known as the BE-10, has a rapidly approaching May 31, 2020, deadline. If you own 10% or more of a foreign company or foreign rental real estate, then you must file this report. With significant penalties, both criminal and civil, at stake […]

In 1958, the Supreme Court affirmed that an individual’s right to travel internationally is a liberty right, unable to be abrogated without due process of law under the Fifth Amendment.[1]Additionally, in 1948, the United Nations recognized “[e]veryone has the right to leave any country, including his own, and to return to his country.”[2]Today, the Internal […]

Recent legislation significantly impacts retirement savings. One notable change involves required minimum distributions (RMDs). This post discusses the change, how it impacts retirement savings, and how taxpayers can minimize potential penalties. What are RMDs? Retirement funds may not be kept in an account indefinitely. The RMD is the minimum amount a taxpayer is required to […]

Eli Noff, Esq., Partner On February 21, 2020, the IRS issued proposed regulations providing guidance clarifying amendments made by the 2017 Tax Cuts and Jobs Act (TCJA) pertaining to Internal Revenue Code (IRC) §274 expenses, i.e. “meals and entertainment” expenses. Most importantly, the proposed regulations clarify that TCJA did not amend the rules relating to deducting business […]