What do you do if you are being tried for a criminal tax charge and the court removes one of the jurors for saying that you should be found not guilty? What if the juror is removed by the court because the Holy Spirit told him that you were not guilty given the evidence presented? …
Articles
IRS Can Avoid Bankruptcy Collection Hold
One of the benefits of filing bankruptcy is that creditors are precluded from taking collection actions. When a taxpayer who owes unpaid taxes to the IRS files for bankruptcy, this collection hold applies to the IRS. But what if the IRS could simply file a motion and avoid the collection hold? This is exactly what…
Settling Unpaid Taxes With Sporadic or Seasonal Income
Sporadic or seasonal income can make it difficult to settle back taxes with the IRS. For example, if you have a large one-time payment that is not likely to continue, can the IRS consider this in evaluating how much you can pay the IRS? The court addresses this in Margolis-Sellers v. Commissioner, T.C. Memo. 2019-165…
Can a Tax Crime Sentence Impact a Related Crime?
If someone commits a financial crime and, at the same time, commits a tax crime, can the tax crime sentence be used to enhance the sentence for the financial crime? The court addresses this in United States v. Smith, No. 18-3222 (8th Cir. 2019). The answer may surprise you. Facts & Procedural History The defendant…
Does a Letter Sent to IRS Count as a Refund Claim?
Taxpayers have a limited time to file refund claims to recoup money from the IRS. The IRS provides tax forms to be used for making these requests. But what happens if the taxpayer does not use the forms the IRS provided and, instead, writes letters to the IRS? Can the letters count as a valid…
The Start of an IRS Audit: To Disclose or Not?
If a taxpayer submits an amended return at the start of an IRS audit, can they avoid penalties for doing so? The rules allow large case taxpayers to make post-audit disclosures and avoid penalties. But what about smaller taxpayers? Should they make disclosures to IRS auditors at the start of the audit process? The Beigalski…
Sentence Enhancements in Criminal Tax Cases
The federal sentencing guidelines help the courts set criminal sentences. These guidelines have to be considered when deciding whether to accept a plea agreement and how to handle the trial. The recent United States v. Kushimo, No. 18-3222 (3d. Cir. 2019), case provides an opportunity to consider two of the sentencing enhancements that often apply…
Is IRS Bound by Social Security Disability Determination?
If the Social Security Administration determines that you are disabled, does the IRS have to accept that determination for tax purposes? It is one government is it not? The court considered this in Gentry v. United States, No. 3:18-cv-00581 (D. Nev. 2019) for the disability exception allowing for a longer period of time to file…
Arguing that the Tax Return You Filed is Incorrect
If your tax return is incorrect and you have pending tax litigation with the IRS, can you argue that the tax return is incorrect? What if the time period for filing an amended tax return is still open? Should the court consider the new argument or should it rely on the incorrect tax return? The…
Whistleblower’s Claim Limited by IRS’s Discretion
If you turn in a tax cheat by filing a whistleblower claim with the IRS, what happens if the IRS does not realize the importance of the information received? Put another way, what if the IRS leaves money on the table by failing to assess the full amount for the taxpayer? Is the whistleblower entitled…