Tag Archive for Find A Tax Advisor

Does The IRS Have The Authority to Issue Whistleblower Awards For FBAR Penalties?

Does the IRS have the authority to issue Whistleblower awards under Section 7623(b) to an individual who provides information that results in the assertion of FBAR penalties? In Whistleblower 22231-12W v. Commissioner, T.C. Memo. 2014-157, the Tax Court came close to deciding this issue.

The only reason it stopped short was because the jurisdictional pre-requisite for the Court to act – a determination by the Whistleblower Office on whether to accept or reject the petitioner’s claim – had not yet been made. In other words, because the petitioner’s claim was still pending before the Whistleblower Office, the Tax Court did not have jurisdiction to do anything. Read More

Written by | Posted in FBAR

Audit Assistance vs Audit Representation: Is There a Difference? Part 3

Audit Representation

What if you have a situation that you have determined needs a more proactive approach from a tax professional? As always, the first step is to get a good detailed engagement letter in place. If there is ever a time to make sure you have a good “disengagement clause” in place, this is it.

IRS Circular 230 Subpart B covers the Duties and restrictions Relating to practice before the Internal revenue Service. There have been some changes recently that we will discuss in the next section, however, the basics remain. You must be competent, exercise due diligence, and promptly follow lawful requests for information when practicing before the Read More

Written by | Posted in Audit

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 5.5.6 – 5.5.6.3)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution of The Republic of South Africa

CHAPTER 5 – JUDICIAL REVIEW WITH REFERENCE TO SS 74A AND 74B –

5.5.6.3 Appropriate authority Read More

Written by | Posted in Africa • Audit

The IRS Issued New Administrative Authority In Connection To Accounting Method Changes For Retail Inventory

The Internal Revenue Service (hereinafter “IRS”) has issued new administrative authority for changing a method of accounting for retail inventory. Newly issued Rev. Proc. 2014-48 provides the select procedures under which a taxpayer may obtain the IRS’s consent to change a method of accounting to comply with the final treasury regulations on the retail inventory method of accounting. The final treasury regulations clarify the computation of ending inventory values under the retail inventory method and provide alternative methods for taxpayers using the retail Lower of Cost or Market (hereinafter “LCM”) method of accounting to account for margin protection payments.

As set forth under Treas. Reg. § 1.471-8, a taxpayer may use the retail inventory method to compute the value of ending inventory at approximate cost (i.e., retail cost) or approximate Read More

Written by | Posted in IRS • Treasury Regulations

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 5.5.6 – 5.5.6.2)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution of The Republic of South Africa

CHAPTER 5 – JUDICIAL REVIEW WITH REFERENCE TO SS 74A AND 74B –

5.5.6.2 Constitutionality of the inquiry and audit Read More

Written by | Posted in Africa • Audit

What Is A FTE? What Is A Seasonal Employee?

My friend, confidant, mentor and expert in the procedural ramifications of ObamaCare, Debbie Nash of D. Nash & Associates, got to talking with me about some of the nuances of this legislation and our discussion quickly digressed into what the definition is of a ‘Full Time Equivalent’ (FTE) employee for IRS tax purposes. One of many reasons I appreciate time together with Debbie is our electrifying and challenging conversations. She keeps me on my toes continually pushing me to be a more astute student of the Internal Revenue Code.

After deliberate debate and further review it quickly became apparent to me that part of this precedent setting legislative action is to simply create long term jobs for the legal industry simply because there are so many unanswered questions. One on the menu today is how Read More

Written by | Posted in Affordable Healthcare Act • Corporate • Small Business

Audit Assistance vs Audit Representation: Is There a Difference? Part 2

Audit Assistance

Now for the ways I define the difference between Audit Assistance and Audit Representation.  Everyone of you is going to set “the line in the sand” at a different location for this call, so please understand these are not hard and fast “rules”, just what I have found works for me.

Audit Assistance include the items you do for you regular clients that get those pesky letters from the IRS of state that are really no big deal.  Things like:

1. Missing form from a mailed return
2. Missing signature from a mailed return Read More

Written by | Posted in Audit

Better Identity Theft Efforts – S. 2736

On 7/31/14, Senators Wyden and Hatch proposed a comprehensive identity theft bill to reduce identity theft related to federal tax filings. This addresses a serious issue. Individuals should not have to worry that federal tax filings may lead to theft and costly use of their tax identification number. While tax reform bills have also included provisions to lessen identity theft, such proposals should not have to wait for a full tax reform bill to be enacted (which will likely take until at least 2016).  The IRS has also ramped up its efforts to reduce identify theft, but needs more assistance.

S. 2736, Tax Refund Theft Prevention Act of 2014, includes new rules for the following areas: Read More

Written by | Posted in IRS • Tax Fraud/Evasion/Crimes

Lights, Camera, Action and Tax Cut! Spotlight on California’s Film Tax Credit Program

In a pivotal strategic effort to mitigate the exodus of filming to other states and countries, California lawmakers take aim to quadruple tax subsidies for location shooting to $400 million a year.

On Thursday, August 14th, Legislation was approved by the Senate Appropriations Committee with a 5-0 vote which would eliminate a controversial system in which film and television productions were awarded tax credits based upon a lottery system, regardless of the economic effect of the production. The bill, AB 1839, must still be approved by the full Senate and signed by Gov. Jerry Brown. However, legislative supporters indicate they are highly confident the measure will clear all remaining hurdles, saying there is widespread acknowledgment that California is quickly losing one of its signature Read More

Written by | Posted in Sales/Use Tax • Specialty Tax Incentives

Audit Assistance vs Audit Representation: Is There a Difference? Part 1

We will be focusing on the difference between Audit Assistance and Audit Representation in the next series of blogs. Is there a difference? Where is the line? Do all taxpayers need actual representation? Does IRS Cir. 230 require representation as opposed to assistance? How does the newly upheld Loving ruling change the playing field?

We will explore and answer these questions and more. We will also review the need for a specific engagement letter for specific situations, how these decisions can affect your E&O coverage, and how they can affect the future of your practice.

The Basics

We will start with the basics of any client contact, no matter the topic of conversation. Read More

Written by | Posted in Audit

New Filing Compliance Procedures for Non-Resident U.S. Taxpayers

The IRS is aware that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs). Some of these taxpayers have recently become aware of their filing obligations and now seek to come into compliance with the law. The Service is announcing a new procedure for current non-residents including, but not limited to, dual citizens who have not filed U.S. income tax and information returns to file their delinquent returns. This procedure will go into effect on Sept. 1, 2012.

Note: On September 30, 2013, FinCEN posted, on their internet site, a notice announcing FinCEN Report 114, Report of Foreign Bank and Financial Accounts (the current FBAR form). FinCEN Report 114 supersedes TD F 90-22.1 (the FBAR form that was used in Read More

Written by | Posted in Expatriate • FATCA • FBAR • Federal • International • OVDP • Tax Fraud/Evasion/Crimes
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