News & Analysis as of October 12, 2024

Failure-to-File

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Income taxes are taxes that are collected on the individual earnings of persons or entities. Depending on the jurisdiction, income taxes are calculated and collected in a variety of ways. Some tax systems collect income taxes based on a progressive scheme, while others may utilize a proportional or regressive framework. less -

Unconstitutionally Excessive FBAR Penalties? It Depends

Rivkin Radler LLP on 9/18/2024

You may recall that earlier this year the IRS launched an initiative to pursue 125,000 “high-income, high-wealth” taxpayers who have not filed taxes since 2017. These were cases where the IRS received third party information...more

When is a US Taxpayer Required to Disclose Offshore Accounts on an FBAR and Form 8938

Allen Barron, Inc. on 4/30/2024

When is a US Taxpayer required to disclose offshore accounts on an FBAR and IRS Form 8938? While many US taxpayers and expatriates have come to understand the requirements of the FinCEN Form 114 or FBAR, a surprising number...more

What Are the Statute of Limitations on an IRS and California Tax Audit?

Allen Barron, Inc. on 11/9/2023

What are the statute of limitations on an IRS audit and a California tax audit? There is a time limit, known as the “statute of limitations“, when the IRS and/or California must complete an audit of your tax returns. It is...more

FBAR Penalty Defenses and Techniques: The Wrong “Willful” Penalty Computation

Gray Reed on 10/11/2023

On September 8, 2023, the IRS issued a News Release suggesting that FBAR compliance investigations and audits would heat up in the near future. For those unfamiliar with FBARs, federal law requires United States persons to...more

Weekly IRS Roundup June 5 – June 9, 2023

McDermott Will & Emery on 6/13/2023

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of June 5, 2023 – June 9, 2023...more

IRS Lacks Statutory Authority to Assess Certain Form 5471 Penalties

Freeman Law on 4/13/2023

The recent Tax Court decision in Farhy demonstrates that clever and novel arguments can carry the day in complex tax litigation matters. In that case, the taxpayer stipulated that he: (1) had Form 5471 filing obligations...more

Supreme Court Hands Taxpayers a Victory in FBAR Penalty Case

Cadwalader, Wickersham & Taft LLP on 3/22/2023

Taxpayers recently won a significant victory at the Supreme Court in a penalty case involving a non-willful failure to file a Report of Foreign Bank and Financial Accounts (“FBAR”) under the Bank Secrecy Act (the “BSA”)....more

Taxpayers’ Failure to File Form 3520 and Form 3520-A Results in Extended Statute of Limitations Period: the Cautionary Tale of...

Freeman Law on 3/6/2023

In the federal income tax world, there are effectively two functions within the Internal Revenue Service (“IRS”). First, the IRS examines tax years and tax returns to determine whether the taxpayer has reported the correct...more

Tax Court in Brief | Kemegue v. Comm'r | Additions to Tax for Failure to File

Freeman Law on 2/20/2023

Summary: In this non-precedential opinion (see section 7463(b)), the Tax Court addresses an addition to tax for failure to pay pursuant to section 6651(a)(1) and (2). During 2017 Kemegue lost his job and experienced multiple...more

Good News: IRS Grants $1.2 Billion in Penalty Relief for Taxpayers Impacted by Covid-19

Lowndes on 9/12/2022

The senior living industry was hit hard by the Covid-19, and the IRS recently announced relief for people or businesses who filed their 2019 or 2020 tax returns late as a result. If your business was subject to failure to...more

Weekly IRS Roundup September 6 – September 9, 2022

McDermott Will & Emery on 9/12/2022

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 6, 2022 – September 9, 2022...more

IRS Announces Relief From Penalties On Some 2019 And 2020 Tax Returns

Polsinelli on 8/30/2022

The IRS just announced, in releasing Notice 22-36, that it will be automatically issuing an estimated $1.2 billion in refunds or credits related to failure to file penalties assessed against taxpayers on a broad range of 2019...more

Internal Revenue Service Announces Sweeping Penalty Relief for 2019, 2020 Tax Returns

Fox Rothschild LLP on 8/30/2022

The Internal Revenue Service plans to provide widespread penalty relief for the late filing of certain tax and information returns for the 2019 and 2020 tax years. According to Notice 2022-36, this latest penalty relief...more

Supreme Court Will Hear Non-Willful FBAR Penalty Dispute

Gray Reed on 6/23/2022

On June 21, 2022, the United States Supreme Court agreed to hear a dispute involving split decisions among the circuit courts on non-willful penalties. The Fifth Circuit parted ways with the taxpayer friendly decision of the...more

Extending the Statute of Limitations for Assessing Federal Tax

McDermott Will & Emery on 1/17/2022

We previously provided an overview of the time limits imposed on the Internal Revenue Service (IRS) for assessing federal tax. The general rule is that the IRS must assess tax within three years from the later of the due date...more

Conviction of Harvard Researcher for Chinese Ties Serves as Caution to Universities

Steptoe & Johnson PLLC on 12/29/2021

Charles Lieber, former chair of the chemistry and chemical biology department at Harvard University, was convicted on December 21st by a jury on two counts of making false statements to federal authorities, two counts of...more

High-Income Individuals And Corporate Tax Returns Are Targets Of IRS Additional Funding Program

Foodman CPAs & Advisors on 5/13/2021

The 2022 discretionary funding request (request) made by the Biden Administration will invest in a “fair and robust” tax system that includes tax compliance enforcement directed at High Income and High Net Worth Individuals...more

Timely FBAR Filing as Important as Ever Following Circuit Court Decisions

Polsinelli on 4/5/2021

Last week the Ninth Circuit issued a win for taxpayers in US v. Boyd, limiting penalties for non-willful violations of the requirement to file a Report of Foreign Bank and Financial Accounts (FBAR). ...more

How to Successfully Request IRS Penalty Relief

Freeman Law on 2/4/2021

Federal tax penalties have always been an IRS priority. But, perhaps more so today than three decades ago. For example, in 1987, the IRS reported that it had assessed penalties of approximately $14 billion. Compare that...more

Comisionado del IRS envía un Mensaje Importante a los Contribuyentes de Altos Ingresos que No Declaran

Foodman CPAs & Advisors on 1/19/2021

El 3 de diciembre del 2020, el IRS publicó “Cómo el IRS prioriza el trabajo de cumplimiento en los no declarantes de altos ingresos a través de esfuerzos nacionales e internacionales” en el Estudio titulado “Closer Look”. El...more

IRS Commissioner Hylton sends an important message to high income non-filers

Foodman CPAs & Advisors on 12/15/2020

On December 3, 2020, the IRS published “How the IRS prioritizes compliance work on high income non-filers through national and international efforts” in the Closer Look. ...more

Court Strikes Down Largest Non-Willful FBAR Penalty Ever

Freeman Law on 10/10/2020

I have previously written on the Bittner (E.D. Tex.) case in a prior Insight. Briefly summarized, the taxpayer, Mr. Bittner, was a dual citizen of both Romania and the United States. However, in 1990, he moved back to...more

IRS has a Commitment to Service US Taxpayers and Enforce Collections Compliance

Foodman CPAs & Advisors on 6/17/2020

According to the Internal Revenue Code, Taxpayers have three obligations: (1) to file timely returns; (2) to file accurate returns; and (3) to pay the required tax voluntarily and timely. ...more

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Income Taxes › Internal Revenue Service › Failure-to-File

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