IRS Audits Part II: What to Expect When You’re Expecting (an Audit)

Introduction This is the second article in a series of articles we are doing on IRS audits. The purpose of this series is to demystify the audit process, inform readers about how IRS audits are conducted, and provide readers with an understanding of the audit process. In Part I of this series, we discussed how…
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A Refresher on Qualified Small Business Stock

By holding qualified small business stock (“QSBS”), noncorporate shareholders of qualifying C corporations can sell their stock tax free after a five-year holding period. Tax benefits associated with QSBS are nothing new. However, until recently, planning with QSBS has been neglected. The Tax Cuts and Jobs Act (“TCJA”) breathed new life into the potential benefits…
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What is Going On? Mid-Term AFR is Less Than Short-Term! Here is Why.

For a few months, the short and mid-term applicable federal rates have been on the heels of one another. These rates ride with treasury rates and the economy in general. For some reason, here lately the mid-term rates have been lower on occasion than the short-term rates. I even caught myself thinking, is this a…
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Tax Court Allows Rollover Contribution Past Deadline

In a recent Memorandum opinion issued by the Tax Court, the Court held that the 60-day time limit for individual retirement account (“IRA”) rollovers was met for a distribution and subsequent recontribution of IRA funds despite the funds not being credited back to the IRA upon recontribution until 62 days after the initial distribution. The IRS…
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IRS Audits: Why Me and What to Expect

Introduction This article is the first article in a multi-part series of articles that I will be doing on IRS audits. The purpose of this series is to demystify the audit process, inform readers about how audits are conducted, and provide readers with an understanding of what to expect if selected for examination. This article…
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A Reminder in the Basics: Timely Mailing is Timely Filing

Timely mailing is timely filing. Seriously, it is. In the case of Curtiss T. Williams, we are reminded of how important it is to ensure compliance and maintain proof of compliance with the mailbox rule of the Internal Revenue Code. While really just a mundane case of a taxpayer getting his petition dismissed due to late filing,…
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Asset Protection Trusts: Update on Recent Litigation

Offshore and domestic asset protection trusts (“APT”) have been around for a while. Currently, there are seventeen states that allow a person to contribute assets to trust for their own benefit (i.e. a self-settled trust) and exempt those assets from claims of their own creditors subject to certain statutes of limitations and exception creditors. Other than…
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Collection Actions Invalidated for Failure to Follow Required Procedures

The Tax Court recently issued decisions in Kearse v. Commissionerand Commission v. Romano-Murphy (“Romano-Murphy II“). Both cases involved review of administrative determinations made by IRS appeals officers in collections due process (“CDP”) proceedings. Section 6330(c)(1) requires appeals officers conducting CDP hearings to verify that the requirements of any applicable law or administrative procedure related to the assessment…
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