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IRS Denied Trust Fund Recovery Penalties Against “Errand Boy” Employee

Imagine working as an employee for a company for two years and then having the IRS impose trust fund recovery penalties worth more than 10 times your annual salary. That’s exactly what happened in Powell v IRS, but when it came time for trial, the… Read More
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Categories: Tax / IRS Penalties
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What Counts as Evidence in an Innocent Spouse Lawsuit?

Can the IRS present new evidence in support of its administrative innocent spouse determinations? A recent Tax Court decision on a motion to strike provides new insight on what counts as evidence in an innocent spouse lawsuit. While the party present… Read More
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Categories: Tax / IRS Penalties
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Update: Sixth Circuit Court Calls FBAR Filing Failures “Objectively Reckless”

The Sixth Circuit Court of Appeals, which controls much of the Midwest, has joined several other appellate courts to confirm that recklessness is enough to support willful penalties for FBAR filing failures. Reviewing the case of United States v. Kel… Read More
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Categories: FBAR
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Could Tax Treaties Exempt Expatriates from Filing FBARs?

Expatriates often have a foot in two (or more) countries, physically and financially speaking. This can make it difficult to understand their U.S. tax filing requirements. Add to that the extra requirement of filing FBARs disclosing foreign financial… Read More
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Categories: FBAR
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Who Has to Disclose Foreign Financial Accounts on FBARs?

Understanding the reporting requirements for U.S. taxpayers with finances overseas can be confusing. It isn’t as easy as whose name is on the account. A recent Court decision provides a helpful guide to determine who has to disclose foreign financi… Read More
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Categories: FBAR
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Can Translation Errors Excuse Willful Failure to File FBAR?

The U.S. tax code, including the reporting requirements for foreign bank accounts, can be confusing at best. Non-English speaking taxpayers face additional hurdles due to risks of translation errors and problems understanding the English language, in… Read More
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Categories: FBAR
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IRS Must Repay Innocent Spouse Widow for Tax Lien, Court Says

Everyone makes mistakes, and that includes the IRS. When the IRS collected an overpayment of unpaid taxes from a widow who qualified as an innocent spouse, the United States Tax Court told the government to give the money back. IRS Assesses Tax Lien… Read More
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Categories: Tax / IRS Penalties
Money and Justice

Could Your Estate Have to Pay Your FBAR Penalties?

When the IRS issues FBAR penalties against elderly taxpayers, they may have an instinct to ignore the issue and hope it goes away after their death. However, a recent United States District Court case, United States v Gaynor, says your estate could h… Read More
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Categories: FBAR
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Tax Deficiency Petition Deadline Isn’t Absolute, Appeals Court Says

It is an unfortunate truth that many U.S. taxpayers wait until the last minute to deal with the IRS. This may mean filing extensions on their tax returns, or delaying contacting a tax attorney to respond to a deficiency notice. But is there ever a go… Read More
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Categories: IRS Debt Collection
US Tax Court

IRS Lacks Authority to Assess Penalties for Failure to Report Foreign Business Ownership, Tax Court Says

U.S. taxpayers must disclose their ownership interests in foreign corporations to the IRS in yearly reports. The failure to report foreign business ownership can result in steep penalties. But a recent United States Tax Court case says that the IRS… Read More
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Categories: Tax / IRS Penalties