How to Prepare for a Tax Audit

There can be nothing more unsettling than receiving a letter from the Internal Revenue Service claiming that the past years taxes are being audited. While auditing is a common practice and affects many Americans each year, it can be unnerving to think that a stranger is digging into personal finances and documents in order to […]

Preparing for Tax Court

Most taxpayers do not realize that in a battle with the IRS, they will find themselves in a specialized court. This is called “U.S. Tax Court” and it operates differently then the criminal or civil courts in the United States. U.S. Tax Court is federal law, and the head tax court is in Washington, DC. […]

Five Common IRS Legal Issues Facing Taxpayers Today

There are many reasons why an individual may find himself in the United States Tax Court, ranging from individuals who failed to document their expenses, to individuals who failed to report their income. Here are some of the most common types of legal issues that are found in Tax Court. Underpayments The IRS typically imposes […]

Settlement in Mr. Wyly’s Tax Litigation Case Reveals Dangers of Offshore Trusts

Sam Wyly, a businessman who founded Sterling Software in the 80s and who held an interest in the retail chain Michael’s, recently entered into a settlement regarding profits that he had allegedly made in offshore trusts. According to the settlement agreement that was approved by U.S. Bankruptcy Judge Barbara Houser in Dallas, Texas, Mr. Wyly […]

Trump 1995 Income Tax Documents Reveal Tax Code “Loop Holes”

There are many ways a person can legally avoid paying taxes as long as they understand the tax code. Point in fact, the $50 million in taxes Donald J. Trump was able to avoid thanks to a massive loss he claimed in 1995. $916 Million Loss The New York Times discovered that Mr. Trump had […]

When IRS Legal Issues Can Affect Foreign Travel

Getting a tax notice from the IRS can be stressful enough but if you don’t contest the IRS legal issues with the IRS or in court, you could be denied a passport or have your passport revoked. A new law entitled “Fixing America’s Surface Transportation Act” or FAST Act adds some muscle to the state’s […]

Cases under Tax Litigation Excluded from Private Collection Agencies

The Fixing America’s Surface Transportation Act (FAST Act) contained a provision that required the IRS to use private debt collectors for certain types of tax debt. The new arrangement, however, does not include amounts that are still under tax litigation, as these do not technically constitute a tax debt until the finality of a court […]

Two Men Named in Tax Fraud Indictment in North Texas

Two men – one from Dallas, Texas and another from Boston, Massachusetts, were arrested early last month and indicted on charges stemming from a number of mortgage and tax fraud offenses. Both men were apprehended after an investigation involving the Internal Revenue Service (IRS) and the Federal Housing Finance Agency’s Office of Inspector General (FHFA-OIG). […]

Medical Device Company Agrees to $275M Settlement with IRS in Tax Dispute

Last month, with just days to go before heading to trial, Medical Device manufacturer Boston Scientific Corp. agreed to settle its existing tax dispute with the Internal Revenue Service (IRS) – a settlement valued at $275 million, plus interest. Boston Scientific, which operates out of the Twin Cities and employs more than 7,000 people, stood […]

Why the IRS May Have Targeted Your Return

Last year the Internal Revenue Services (IRS) revealed that only 0.84% of all tax returns were audited. This is the lowest level in audits in over a decade. But taxpayers should never assume that their return is audit-proof. The IRS has not disclosed why some returns are selected for auditing while others pass through free […]