Recklessly Providing False Info to the IRS Could Cost You a Tax Credit

Last month, the IRS finalized regulations that sought, among other things, to reduce the chances that a person would recklessly provide inaccurate financial information to a Health Exchange. According to the new regulation, a person who qualifies for a tax credit, will no longer qualify for the credit if they recklessly provided false information to […]

Charitable Contributions Are Being Scrutinized by IRS

In recent months, it has come to the attention of the Department of the Treasury and the Internal Revenue Service (IRS) that certain individuals, called promoters, have been falsely stating to taxpayers that they could make charitable contributions of conservation easements in exchange for tax deductions in excess of the amount of the contribution. These […]

Priest’s Guilty Plea to Tax Evasion Shows Dangers of Not Knowing Your Rights

No one is above the law when it comes to paying taxes, as Father Hien Minh Nguyen, 56, discovered. A priest for the Roman Catholic Diocese of San Jose, Father Nguyen pled guilty to four counts of tax evasion following an Internal Revenue Criminal Investigation interview late this summer. Witness Becomes Target Father Nguyen’s admittance […]

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 […]