- IRC §965 Transition Tax,
- IRC §951A GILTI Tax,
- IRC §250 50% Deduction for Corporate Taxpayer's,
- IRC §960 80% Deamed Paid Foreign Tax Credit and
- IRC §962 Election to be taxed as a Corporation.
Thursday, July 30, 2020
Wednesday, July 29, 2020
Who Utilize Their Services.”
“The unsealing of this indictment sends a clear message that IRS-CI is actively engaged in international tax enforcement, and more investigations are on the way,” said Don Fort, who leads the tax agency’s criminal investigations unit. “
Now according to Law360, prosecutors are seeking more than two (2) years in prison for a private equity magnate and his former accountant whose $3.4 million tax dodge was exposed in the Panama Papers, saying the two elderly men need to serve significant time to promote respect for U.S. tax law.
Private equity manager Harald Joachim von der Goltz, 83, and his former
accountant Richard "Dick" Gaffey, 75, have both admitted to concealing von der
Goltz's assets from the IRS with the help of
Panamanian law firm Mossack Fonseca. Millions of the firm's documents were
leaked to the press in 2016, providing a glimpse into how the world's powerful
hide their wealth offshore.
The pair are scheduled to be sentenced in September, and have both argued that their age and health conditions warrant lower sentences. In recent filings, federal prosecutors said that while neither man should serve the eight years called for by the U.S. sentencing guidelines, both should spend multiple years behind bars.
- Von der Goltz, a dual citizen of Germany and Guatemala who prosecutors say abandoned his U.S. resident status in a bid to remain uncharged, has asked for time served, citing his character, age and illnesses.
- Gaffey, a Massachusetts resident, has lobbied for a two-year sentence to be served in home confinement because of the risk to his health posed by COVID-19.
Prosecutors told U.S. District Judge Richard M. Berman that they would not oppose delaying the start of prison sentences for the two men, depending on the severity of the pandemic at the time. However, they asked the judge to impose unspecified sentences longer than two years on both men.
Tuesday, July 28, 2020
An extension to file is not an extension to pay; penalties and interest will apply to taxes owed after July 15.
A taxpayer will usually qualify for relief if they qualify for First -Time Penalty Abatement or where they have reasonable cause for filing late.
1. First-Time Penalty Abatement (FTA) - Generally, an FTA can provide penalty relief if the taxpayer has not previously been required to file a return or has no prior penalties (except the estimated tax penalty) for the preceding three years with respect to the same IRS File (IRM §220.127.116.11.6.1). or
2. Reasonable Cause Defense - Under Section 6038 of the tax code, which lays out the information reporting requirements for individuals and businesses with an interest in foreign corporations and the penalties for delinquent filing, penalties may be abated if a reasonable cause exists for the failure to file. However, neither the statute nor the applicable regulations define a reasonable cause standard for the abatement. Treasury Regulations Section 301.6651-1(c) provide a definition of what constitutes reasonable cause for failure to file corporate income tax returns and says that "if the taxpayer exercised ordinary business care and prudence and was nevertheless unable to file the return within the prescribed time, then the delay is due to reasonable cause."
Have IRS Penalty Problems?
Contact the Tax Lawyers at
Marini & Associates, P.A.
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)
Monday, July 27, 2020
Marini & Associates, P.A.
memo to field collection employees, the Director of Field Collection for the IRS's Small Business/Self-Employed Division has said that, due to COVID-19, Field Collection will continue to maximize telework and remote contact between employees and taxpayers for the vast majority of its cases. Face-to-face public contact/field activities will only occur in exceptional cases.
The COVID-19 pandemic, beginning March 2020, significantly affected Field Collection (FC) employees’ ability to conduct face to face investigative and enforcement activities with the public. Throughout the COVID-19 pandemic, Field Collection and IRS have emphasized employee safety as our number-one priority, and that will continue to be the case when the People First Initiative expires on July 15, 2020.
Effective July 16, 2020 and until further notice, Field Collection will continue to maximize telework and remote contact between employees and taxpayers for the vast majority of our cases.
Field Collection employees may be permitted to conduct essential face-to-face public contact/field activities, on a voluntary basis, only when necessary and appropriate, and only with Territory Manager concurrence.
- There are no effective alternatives to face-to-face contact, and the failure to act poses a risk of permanent loss to the government, such as the expiration of a statute, assets being placed permanently beyond government reach, or the continuing pyramiding of employment tax liabilities or
- The taxpayer or representative has requested face-to-face contact and the RO and manager agree that field contact would advance the progress of the case.
In all instances, we will consider the personal facts and circumstances relative to each individual employee including factors such as risk status and personal safety concerns relative to the proposed face-to-face public contact/field activities.
Where possible, employees should consider conducting the meeting with the taxpayer in an IRS facility (such as, Taxpayer Assistant Centers) equipped with plexi-glass barriers.
Field Collection employees and managers should use this document, along with the attached checklist, and other COVID-19 related federal, state, and local guidance on health and safety, travel, restrictions on state/local business resumption status, and most importantly, knowledge as to the appropriateness of face-to-face public contact/field activities given local circumstances, when considering and approving face-to-face public contact/field activities.
Background. As part of the IRS's Field Collection group, revenue officers (RO) are IRS civil enforcement employees who work cases that involve an amount owed by a taxpayer or a delinquent tax return. (IRM 5.1.20, Field Collecting Procedures, Collection Inventory (11/2/2016); IRS website "How To Know it's Really the IRS Calling or Knocking on Your Door: Collection")
In cases where a taxpayer may have been affected by a disaster, the IRS can use "soft contact" procedures to contact the taxpayer about a tax debt. A soft contact entails approaching the taxpayer with caution and extreme sensitivity to their personal circumstances. Stress and fatigue are factors to consider even in instances where the taxpayer did not experience any personal, monetary, or physical damage from the disaster. (IRM 18.104.22.168.7 (8/5/2014))
Due to COVID-19, the IRS has stopped field revenue officer enforcement actions, such as liens and levies. Revenue officers will continue to pursue high-income non-filers and perform "other similar activities" where necessary. See IRS provides updates on compliance, exam activities through July 15 (05/15/2020).
Limit on Field Collection activities to continue. The July 10, 2020 memo says that, until further notice, Field Collection will continue to maximize telework and remote contact between employees and taxpayers for the vast majority of its cases. Face-to-face public contact/field activities will only occur in exceptional cases, as described below. They will not be routine or regularly occurring activities.
Field Collection employees may be permitted to conduct essential face-to-face public contact/field activities on a voluntary basis, only when necessary and appropriate, and only with manager concurrence.
These limited face-to-face public contact/field activities may include making field contacts to view assets, serve summons, take necessary and appropriate investigative and/or enforcement actions, and conduct interviews with taxpayers, their designated representatives, and/or third parties at their homes or business locations (if there are no alternate locations where these activities can be performed), and will only be authorized when:
• There are no effective alternatives to face-to-face contact, and the failure to act poses a risk of permanent loss to the government, such as the expiration of a statute, assets being placed permanently beyond government reach, or the continuing pyramiding of employment tax liabilities; or
• The taxpayer or representative has requested face-to-face contact and the RO and manager agree that field contact would advance the progress of the case.
The memo stresses that ROs must conduct all face-to-face public contact/field activities with caution and extreme sensitivity to the taxpayer's personal circumstances and how the taxpayer has been impacted by the COVID-19 pandemic. ROs must apply good judgment in determining when public contact and/or enforcement action is appropriate and should use Soft Contact procedures to determine the impact of the national emergency on the taxpayer.
The memo notes that the Internal Revenue Manual provides ROs with the necessary authorities and discretion to appropriately handle unusual situations and hardship issues.
Wednesday, July 22, 2020
Marini & Associates, P.A.
Tuesday, July 21, 2020