By Kevin Spencer, Edward L. Froelich and Evan Walters on Jul 21, 2023
Posted In Appellate Courts, Court Procedure Matters, Trial Courts
On June 1, 2023, in United States v. Liberty Global, Inc., the US District Court for the District of Colorado held that the US Department of Justice (DOJ) can assert and seek judgment for federal income tax deficiencies using a common law right of action, bypassing the usual statutory tax deficiency procedures outlined in the Internal...
By Kevin Spencer and Evan Walters on Jun 29, 2023
Posted In Appellate Courts, Court Procedure Matters, Tax Refunds, Trial Courts
Over the years, case law has developed around when a mail delivery method is acceptable to prove that a tax filing was made. The US Court of Appeals for the Fourth Circuit’s recent decision in Pond v. United States addresses how a taxpayer can prove delivery of a filing where the Internal Revenue Service (IRS)...
By Kevin Spencer, Evan Walters and McDermott Will & Emery on Jul 18, 2022
Posted In IRS Guidance
The Internal Revenue Service (IRS) recently announced that it will hire 470 new revenue agents into the Small Business Self Employed (SB/SE) division. This effort is part of a larger IRS staffing initiative, following a January 2022 announcement that the IRS plans to hire 200 lawyers to assist with litigation efforts, a March 2022 announcement...
By Kevin Spencer, Evan Walters and McDermott Will & Emery on Sep 10, 2021
Posted In IRS Audits, IRS Guidance, Trial Courts
Several years ago, it came to light that the Internal Revenue Service (IRS) had hired a law firm to assist with transfer pricing matters in an ongoing audit of a large corporate taxpayer. Contemporaneous with that hiring, the IRS issued temporary regulations providing that third-party contractors “may receive books, papers, records, or other data summoned...
By Kevin Spencer, Evan Walters and McDermott Will & Emery on Jul 1, 2021
Posted In IRS Guidance
Each year, the Internal Revenue Service (IRS) publishes a list of tax-related scams, which it calls the “Dirty Dozen.” This year, it provided a “Dirty Dozen” scam series warning taxpayers of such scams. In IR-2021-135 (June 28, 2021), the IRS rolled out its “Dirty Dozen” list for 2021, warning taxpayers to look out for 12...
By Evan Walters, Kevin Spencer and McDermott Will & Emery on May 31, 2019
Posted In IRS Audits, IRS Guidance, Tax Refunds, Uncategorized
The IRS is using a new tool from its arsenal to enforce compliance for tax refund and credit claims: the Internal Revenue Code Section 6676 penalty. Taxpayers and their advisers need to be aware of the mechanics of this penalty and how best to avoid it being sustained. Andrew R. Roberson, Kevin Spencer and Evan...
By Evan Walters and McDermott Will & Emery on Mar 5, 2019
Posted In Appellate Courts, IRS Audits, IRS Guidance, Trial Courts, Uncategorized
The Internal Revenue Service (IRS) had broad examination authority to determine the correct amount of tax owed by taxpayers. In addition to seeking information directly from a taxpayer, the IRS is also authorized to seek information from third parties. However, Internal Revenue Code (Code) Section 7602(c)(1) requires that the IRS provide “reasonable notice in advance...
By Damon M. Lyon, Evan Walters and Lowell D. Yoder on Jun 27, 2018
Posted In IRS Guidance, Tax Reform, Uncategorized
The 2017 Tax Act added a separate foreign tax credit limitation category, or basket, for income earned in a foreign branch. As a result, certain US groups may be limited in their ability to use foreign income taxes paid or accrued by a foreign branch as a credit against their US federal income tax liability....