IRS

Glen E. Frost, Managing Partner The Internal Revenue Service (IRS) considers a passive activity as any activity involving the conduct of a trade or business in which the taxpayer does not materially participate.1Rental activity is considered a per se passive activity, regardless of the taxpayer’s participation level, unless the taxpayer can demonstrate that he or […]

From a tax perspective, an audit is one of the most challenging situations a taxpayer may confront. Whether you’re facing an audit now, or you’re simply concerned about the possibility of an audit, there are several things you need to know. Each year, the process of filing taxes fills many Americans with dread and frustration. […]

Eli Noff, Esq.,Partner As we reported last year, the IRS is actively targeting taxpayers with “seriously delinquent tax debt” for passport denial/revocation.[1]Recently, on July 12, 2019, the IRS released interim guidance for agency officials regarding passport decertification and revocation.[2]The guidance signifies a significant shift in enforcement. Until now, some certified taxpayers have experienced the enforcement […]

Eli Noff, Esq., Partner We’ve continued to report on the increasingly aggressive IRS posture towards uncovering tax evasion via cryptocurrency transactions.[1]Interestingly, we may now be seeing a trend in the courts indicating that the IRS will need to more carefully tailor summonses in cryptocurrency cases in order to survive the courts’ scrutiny of the allowed […]

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 […]