The Tax Court held that its review of a certification of a seriously delinquent tax debt potentially denying or revoking a taxpayerβs passport could include evidence introduced at trial.
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TOPICS / PROCEDURE
Collections, Liens & Levies
No proceeds from sale of husbandβs home to pay tax debts go to wife
A state marital homestead law was insufficient to establish a property interest by a taxpayer whose husband was the homeβs sole owner.
Forfeiture of IRA is not a taxable distribution
A taxpayer whose individual retirement account was paid to the government under a criminal court order did not have taxable income as a result, the Sixth Circuit held, reversing the Tax Court.
Certification of seriously delinquent tax debt not erroneous
The D.C. Circuit affirmed the Tax Courtβs determination that the IRS properly certified a taxpayer to the U.S. State Department under Sec. 7345 for possible denial, revocation, or limitation of a passport.
Tax Court again holds Sec. 6038(b)(1) penalties not assessable
Reconsidering its earlier holding in the case, the court again held the IRS lacks statutory authority to assess the penalties for failing to file information returns disclosing ownership in foreign corporations.
No Collection Due Process hearing for FBAR penalties
A hearing is available only for taxes imposed by Title 26, the Internal Revenue Code, as opposed to the taxpayersβ foreign bank account reporting penalties under U.S. Code Title 31, the Tax Court held.
Opportunity zone penalties: What constitutes reasonable cause?
Penalty relief for reasonable cause is worth exploring for faults in meeting the investment standard and asset tests despite exercising ordinary business care and prudence.
IRS collects $1 billion from high-income people who owed back taxes
The IRS is collecting on tax liabilities that were not βeven in dispute,β Commissioner Danny Werfel said, but the IRS did not previously have the resources to pursue payment.
Third Circuit rejects IRSβs mootness claims
The IRSβs setoffs of estimated payments against the taxpayerβs deficiencies were invalid, the court finds, making the taxpayerβs lawsuit a live case or controversy.
Taxpayer notice of third-party contact shortened under proposed regs.
The IRS would reduce the notice of third-party contact with respect to the determination or collection of the taxpayerβs tax liability to 10 days from 45 days in several circumstances involving statutory periods for assessments and collections that expire in one year or less.
IRS renews focus on targeting high-income nonfilers
IRS Commissioner Danny Werfel said Thursday that the effort will begin with compliance letters going out to high-income taxpayers in 125,000 cases where third-party information indicated federal tax returns have not been filed since 2017.
Tax Court allows equitable tolling of deadline to review CDP hearing
Equitable tolling applies to the deadline for filing a request for a collection due process hearing.
Distributions to wife do not result in income for husband
Distributions from an IRA and insurance policy taken by wife under a POA from husband are not income to husband.
Rethinking international penalty administration
This item explores the Farhy decision and its impact on international penalties.
Litigation costs denied; IRS substantially justified in its position
Award of litigation costs denied because IRSβs position was substantially justified.
IRS backlog lessens; agency plans to resume collection notices
The IRS said all returns received for tax year 2021 or earlier have been processed if the returns had no errors or did not require further review.
Trusts held to be nominees of delinquent taxpayer
Two trusts held to be nominees of individual taxpayer.
90-day deadline for filing Tax Court petition in deficiency case is jurisdictional
Deadline for filing a Tax Court petition in a deficiency case is jurisdictional.
TIGTA: 14,000 taxpayers improperly subject to private collection agencies
A TIGTA audit report says the IRS wrongly included over 14,000 low-income taxpayers among those subject to private collection agencies. The IRS disputed the report, saying those taxpayers arenβt protected by the Taxpayer First Act.
28 years after assessment, IRS collection suit is still timely
The statute of limitation was tolled from the time of an appellate decision until the Supreme Court denied a petition for a writ of certiorari.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
