IRS

Eli Noff, Esq.,Partner On July 25, 2019, in Dufresne v. Commissioner,[1]the Tax Court held that purported intrafamily loans between a son and his mother failed to withstand heightened scrutiny to qualify as bona fide loans. The decision emphasizes the need for careful record-keeping and convincing substantiating evidence. Without such documentation, the government is poised to […]

Eli Noff, Esq., Partner On September 6, 2019, the Internal Revenue Service (IRS) announced new relief procedures, “Relief Procedures for Certain Former Citizens,” allowing eligible, non-willful individuals, who relinquished their U.S. citizenship, to come into compliance with U.S. tax and filing obligations and obtain relief for back taxes.[1] The IRS has not yet provided a […]

Carly Steren, Legal Intern Many taxpayers are surprised and alarmed to learn that Federal tax liens survive a bankruptcy discharge. In other words, the IRS can still enforce its lien and seize property, even though the underlying taxes were discharged. Perhaps even more alarming to taxpayers, is the fact that even retirement accounts are still […]

Eli Noff, Esq., Partner As we previously reported in Section 199A: New 20% Pass-Through Deduction,[1] the Tax Cuts and Jobs Act of 2017 created Internal Revenue Code (IRC) §199A, which provides a tax break to flow-through entities. Basically, some eligible taxpayers (excluding C corporations) may deduct up to 20% of “qualified business income” (QBI). Significantly, […]

Eli Noff, Esq., Partner A successful offer in compromise (OIC) allows a taxpayer to settle unpaid tax accounts for less than the full amount owed. However, if an OIC is ultimately granted, a taxpayer also agrees to certain terms and conditions going forward in order not to default the OIC. Interestingly, in a recent case, […]

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 […]

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 […]

Eli Noff, Esq. On October 16, 2019, the IRS announced that it had reviewed and reversed its recent temporary suspension of passport certification procedures on passports for anyone who had a case open with the National Taxpayer Advocate Service (TAS). The IRS explained that: Excluding cases from certification solely on the basis that the taxpayer […]

Two raids in one day. The Internal Revenue Service (IRS) decided to raid both a business owners’ place of business as well as his private residence on the same day. These were not tax agents clad in black suits carrying briefcases. These were federal agents in full body armor carrying assault rifles gathering boxes of […]