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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
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Willful Blindness Leads to Willful FBAR Penalties After Doctor Hides Assets

Taxpayers can’t turn a blind eye to their IRS filing requirements and expect to avoid willful FBAR penalties. A recent decision from the United States District Court for the Eastern District of Michigan shows that when an anesthesiologist tried to… Read More
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Categories: FBAR
Gavel And Justice Scale

U.S. Supreme Court Excuses Secret IRS Summons, Sometimes

Do you have the right to notice when the IRS demands production of your financial information? If the IRS reaches too far, do you have the right to take the government to court and limit that reach? The recent unanimous United States Supreme Court de… Read More
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Categories: IRS Debt Collection
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When Are Rental Real Estate Losses Not Deductible?

Many U.S. taxpayers find themselves as landlords even while working full time in another industry. When the cost of owning a rental property starts to add up, you may wonder whether those costs can help offset your income on your U.S. tax returns. A… Read More
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Categories: Tax Deductions
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Does an IRS Passport Revocation Violate Taxpayers’ Right to Travel?

When a taxpayer falls seriously behind in paying tax obligations, they may fall subject to IRS passport revocation procedures used to collect the outstanding tax liabilities. But does the IRS blocking a taxpayer’s ability to get or renew a passport… Read More
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Categories: Tax / IRS Penalties
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Will Reasonable Reliance on Tax Professionals Save You in an Audit?

When taxpayers hire accountants to help prepare their tax returns, they expect it to be done right, and to save them from audits. But sometimes the quality of that product is limited by the information the taxpayers themselves provide. A recent Unite… Read More
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US Sanctions Create FBAR Problems for Irani Immigrants

International sanctions made it hard for two Irani immigrants to transfer proceeds from the sale of their home. But the U.S. District Court in Oregon said that what they did next created FBAR problems resulting in willful FBAR penalties that no jury… Read More
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Categories: FBAR