Source: http://taxtrials.com/?cat=9
Timestamp: 2014-09-18 17:41:52
Document Index: 725514941

Matched Legal Cases: ['§ 6707', '§ 6501', '§ 6501', '§ 170', '§ 49', '§6707']

Print PDF	Posted in Federal	| Tagged CDP Hearing, IRC § 6707A, IRS, Jurisdiction, Penalties, Tax Court	Tax Court Rejects Taxpayers’ Reliance on Home Concrete Decision
Posted on September 9, 2014 by admin	In Barkett v. Commissioner, 143 T.C. No. 6 (2014), the Tax Court held that gains reported from the sales of investments (not the amount realized) are used to determine whether the taxpayers understated gross income by more than 25% for purposes of the extended six-year statute of limitations under IRC § 6501(e)(1)(A). The issue came before the Tax Court on the taxpayers’ motion for partial summary judgment.
Print PDF	Posted in Federal	| Tagged Home Concrete, Intermountain, IRC § 6501, IRS, Statute of Limitations, Tax Court	IRS Updates Internal Revenue Manual for Streamlined Offshore Compliance
Posted on September 3, 2014 by admin	The IRS recently released a procedural update to the Internal Revenue Manual for the Streamlined Filing Compliance Initiative. The IRS added section 21.8.1.27 to the Internal Revenue Manual including two subsections detailing Streamlined Filing Compliance for U.S. Taxpayers Residing Outside the United States (IRM 21.8.1.27.1) and Streamlined Filing Compliance for U.S. Taxpayers Residing in the United States (IRM 21.8.1.27.2). The new subsections detail eligibility requirements for taxpayers entering into the Streamlined Filing Compliance Initiative to avoid failure-to-file and failure-to-pay penalties when filing amended tax returns.
Print PDF	Posted in Federal, Tax News	| Tagged Foreign Bank Account, Foreign Bank Account Reporting, IRM, IRS, LB&I, Offshore Voluntary Disclosure, OVDP 2014, Streamlined Filing Compliance	Record Your Easement: Tax Court Adjusts Timing & Valuation of New York Facade Easement
Posted on August 13, 2014 by admin	In Zarlengo v. Commissioner, T.C. Memo 2014-161, the Tax Court held that a New York facade easement is not protected in perpetuity under IRC § 170(h)(5)(A) until the easement is recorded. The Court followed its decision in Rothman v. Commissioner, TC Memo 2012-163 and New York state law, specifically NY. Env. Law § 49-0305(4), requiring that a “conservation easement shall be duly recorded and indexed as such in the office of the recording officer for the county or counties where the land is situate in the manner prescribed by article nine of the real property law.” The Court disallowed the charitable deduction taken in the year before the easement was properly recorded and all carryover deductions from that year.
The taxpayer found some success with their appraisal and valuation experts, as they were able to keep a portion of the charitable deduction claimed after the easement was properly recorded. They were also able to avoid accuracy-related penalties for years prior to the Pension Protection Act of 2006 by presenting a successful reasonable cause defense.
Read the full opinion here: Zarlengo v. Commissioner, T.C. Memo 2014-161
Print PDF	Posted in Federal	| Tagged Charitable Contribution, Conservation Easement, Facade Easement, IRS, Qualified Appraisal, Tax Court	IRS Offers New Streamlined Procedures & Reduced Penalties for Foreign Accounts
Posted on June 25, 2014 by admin	The IRS recently revised and updated the 2012 Offshore Voluntary Disclosure Program. The modified program takes effect on July 1, 2014 and provides streamlined procedures and reduced penalties for U.S. taxpayers with foreign bank accounts.
Print PDF	Posted in Federal	| Tagged FATCA, FBAR, FinCen, Foreign Asset Reporting, Foreign Bank Account, Foreign Bank Account Reporting, IRS, Offshore Voluntary Disclosure, OVDI, OVDP, OVDP 2014, Quiet Disclosure, Streamlined Filing Compliance	Supreme Court Upholds Integrity of IRS Summons Process
Posted on June 20, 2014 by admin	In a unanimous decision, the U.S. Supreme Court upheld the integrity of IRS summons enforcement proceedings. The high court rejected the IRS position and held that a taxpayer has the right to conduct an examination of IRS officials regarding their reasons for issuing a summons when the taxpayer shows facts raising a plausible inference of bad faith. The IRS sought to disregard taxpayer affidavits attesting that the IRS issued the summonses to punish the taxpayer for refusing to extend the statute of limitations and that the summons enforcement action was designed to evade limitations on Tax Court discovery. The IRS characterized the taxpayer’s claims as bare assertions. For more about the underlying matter and the parties’ positions, please see our article in the current issue of the Federal Lawyer: Bare Assertions, Naked Allegations, & Improper Purposes. The Supreme Court rejected the IRS arguments and established the appropriate standard for reviewing the proper purpose required to enforce an IRS summons. The Court ruled that the taxpayer is entitled to examine an IRS agent as part of a summary enforcement proceeding when the taxpayer “can point to specific facts or circumstances plausibly raising an inference of bad faith.” Stated differently, “the taxpayer need only make a showing of facts that give rise to a plausible inference of improper motive.”
Though the Court dismissed the IRS arguments, it also found the intermediate decision of the 11th Circuit in favor of the taxpayers lacking. The Supreme Court found the 11th Circuit’s brief opinion potentially too far ranging in its result and remanded the matter for a more specific findings on the errors adduced to the district court. It also suggested that certain legal issues discussed in the district court opinion, specifically those related to the interplay between summons enforcement and Tax Court discovery, might be subject to review by the 11th Circuit. So while the taxpayer has secured a certain victory, there likely will be more clarification to come on this issue.
Read the U.S. Supreme Court’s opinion here:
U.S. v. Clarke, 573 U.S. ___ (No. 13-301, June 20, 2014)
Print PDF	Posted in Federal	Second Circuit Affirms Importance of Proper Valuations for Facade Easements
Posted on June 19, 2014 by admin	On Wednesday, June 18, 2014, the Second Circuit Court of Appeals affirmed the U.S. Tax Court’s ruling in Scheidelman v. Commissioner, TC Memo 2013-18.
Print PDF	Posted in Federal	| Tagged 2nd Circuit, Facade Easement, Scheidelman, Tax Court	Famous Fridays: Nicolas Cage, Spending A Fortune In Sixty Seconds
Posted on May 23, 2014 by admin	Regardless of your opinions on his talent as an actor, Nicolas Cage amassed a fortune for his consistent roles in movies since 1981. Cage won an Oscar for his performance in Leaving Las Vegas, but he may be best known for his roles in adventure movies Con Air, Face/Off, Gone in Sixty Seconds, Lord of War, and Ghost Rider. He earned more than $150 million from acting between 1996 and 2011, and found a way to spend almost all of it.
Print PDF	Posted in Federal	| Tagged Famous Fridays, Federal Income Tax, Omission of Income, Tax Evasion, Tax Lien	Conservation Easement Yields New Rule on Reasonable Cause Penalty Defense
Posted on May 16, 2014 by admin	The Tax Court disallowed another charitable deduction for the donation of a façade easement in Boston’s South End Historic District. This time the decision was based on valuation principles, not technical foot faults, and the taxpayers were able to avoid certain penalties.
Print PDF	Posted in Federal	| Tagged Accuracy Related Penalty, Chandler, Conservation Easement, Facade Easement, Gross Valuation Penalty, Kaufman, Penalties, Tax Court	Reliance on Tax Attorney & Licensed Appraiser Helps Taxpayer Preserve Deductions & Avoid Penalties
Posted on May 8, 2014 by admin	In Palmer Ranch v. Commissioner, a TEFRA partnership avoided accuracy-related penalties even though the Tax Court reduced the fair market value of its conservation easement by $3.98 million.
Print PDF	Posted in Federal	| Tagged Charitable Contribution, Conservation Easement, Penalties, Qualified Appraisal, Reasonable Cause, Tax Attorney, Tax Court, TEFRA	Post navigation
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Record Your Easement: Tax Court Adjusts Timing & Valuation of New York Facade Easement
Supreme Court Upholds Integrity of IRS Summons Process
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