Taxpayers often complain about how difficult the tax code and law are. And they are correct to do so, as the complexity generally favors the IRS. It leaves taxpayers in the position of having to wait for an IRS audit only to find that all of their efforts to comply and do their taxes correctly…
Category: Tax Procedure
Tax Procedure
From IRS audits and appeals to tax litigation and penalties, our tax attorneys can help you navigate the tax procedure landscape with confidence. Give us a call to see how we can help, (713) 909-4906.
IRS Cannot Abate Interest on Employment Taxes
The IRS has a track record of not acting timely. Its failures in this regard are frequent and, sadly, they are expected. The bar has been set so low that we actually expect the IRS to go slow. This can be extremely frustrating for taxpayers and it can even cost taxpayers a considerable amount of…
Congress Works on the IRS Informants Reward Program
The Tax Relief and Health Care Act of 2006 makes a number of changes related to the IRS informants reward program. This program has long been ridiculed for being ineffective and poorly administered. Even the U.S. Treasury Inspector General for Tax Administration has said so. The question is whether the sweeping changes will have any…
The Improved Frivolous Return Penalty
The Tax Relief and Health Care Act of 2006 has brought significant changes to the frivolous income tax return penalty under Section 6702. Until now, the low penalty amount and limited reach of this penalty meant that taxpayers did not have to worry about the consequences of filing frivolous tax returns. However, with the changes…
Taxpayers Cannot Record IRS Telephone Interviews in CDP Hearings
Sometimes it is nice to have a record of what transpired. This is true even if the recording is never used. Just the fact that the recording is being made, and everyone is aware that it is being made, can change the tone and substance of the meeting. The law allows taxpayers to record meetings…
Tax Protestors Has Right to Choose Own Tax Attorney
The Sixth Amendment guarantees criminal defendants the right to choose their own tax counsel, but what happens when that chosen counsel insults the court? The United States v. Nolen, 472 F.3d 362 (5th Cir. 2006) case explores this issue in the context of a tax protester who hired a series of attorneys to resolve his…
IRS Has the Burden of Proof for Items of Income
In tax disputes between taxpayers and the IRS, the burden of proof lies with the IRS to prove that a taxpayer earned more income than reported. The IRS has to have some evidence. These rules are set out in Section 7491, which shifts the burden of proof to the IRS, making it more difficult for…
No Tax Penalties for Obscure Tax Forms
The adage ‘Bad facts can create bad law’ applies to IRS penalties, where the agency typically removes penalties for most taxpayers with strong factual support at the administrative level. Court cases lacking strong facts often result in litigation, leading to numerous court cases where the government prevails. While it is uncommon for taxpayers to succeed…
5 Things to Prepare for an IRS Audit
The IRS audit rate is quite low. But lucky you, you have received an IRS audit notice. Fun stuff. So what do you do? Or what can you do to prepare? There are several things that you might start with. Before getting into those, let’s stop to think about how the IRS audit process. The…
The IRS’s Strategic Litigation Approach: One Case at a Time
In the complex landscape of tax law, the IRS plays a significant role in shaping and enforcing tax laws and regulations. One of the key strategies employed by the IRS is the careful selection of cases to litigate, particularly when previous decisions have favored taxpayers. By patiently waiting for the right set of facts to…